Reuters.com reports that Japanese electronics giant NEC has posted good
financial results. The company currently best known to CD Freaks visitors
because it was among the first companies to release the latest DVD recorder
models was able to lift six-month profit
estimates. Hitachi (hard drives, Hitachi Maxell) also posted their results,
but these were rather dissapointing, also Toshiba posted losses.
 Demand
for all-in-one system chips used in DVD recorders made by NEC Electronics
Corp, which recently had a $1.3 billion yen IPO, and an aggressive
overseas push for its mobile phones contributed to NEC's surprise first
quarter profit. Japan's biggest mobile phone maker eked out a
quarterly net profit of 700 million yen ($5.8 million) in the three months
to June 30, prompting it to raise its first half net profit forecast to 12
billion yen from an April estimate of three billion.
While quarterly net profit fell
90.3 percent from the same quarter a year ago, most analysts had expected
NEC to report a loss. And with two straight annual net losses still
weighing heavily on its balance sheet, NEC officials remained cautious.
"This is by no means a satisfactory result, but we are now on
pace for the full-year to exceed our earlier plans," NEC executive vice
president Shigeo Matsumoto told a news conference.
NEC's upbeat results and outlook followed
losses by rivals Toshiba Corp and Fujitsu Ltd, which disappointed
investors and took some of the air out of their shares after a big stock
market rally over the last few months |
Japanese companies have to struggle to compete with
Taiwanese and South Korean companies who are able to produce for much lower
prices and are able to create good quality products. Japanese companies are
however still considered to be the most advanced and to have the best
research and development departments.
Source: Reuters.com
