Advertisment

Renesas posts $1.4 bn annual net loss after quake

author-image
CIOL Bureau
Updated On
New Update

BANGALORE, INDIA: Japan's Renesas Electronics Corp , a major supplier of semiconductor chips to the auto industry, posted a 115 billion yen ($1.4 billion) annual net loss and declined to provide a forecast for the current financial year, after the March earthquake damaged one of its main plants.

Advertisment

The company said it expected to provide earnings guidance for the year to March 2012 in July.

Shortages of parts, including microcontrollers from Renesas, have forced the world's carmakers to cut output since the devastating March 11 quake, but Honda and Nissan said this week they were accelerating efforts to resume full production.

The results for the year ended March 2011 were in line with a revised forecast announced on May 10, which blamed restructuring costs and the effects of the earthquake for the losses.

The losses cannot be compared directly with last year's results, which were announced ahead of the merger of Renesas Technology Corp and NEC Electronics Corp. The merged corporation would have suffered a 137.8 billion yen net loss in the year to March 2010, Renesas said.

Shares of Renesas closed up 5.8 percent at 744 yen prior to the announcement, after the Nikkei business daily reported that the company would restore semiconductor supply capacity by the end of October to levels seen before the March earthquake halted its Naka plant

semicon