EPSON TO SEE RECORD-HIGH LOSSES

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EPSON TO SEE RECORD-HIGH LOSSES

 user 2009-03-17 at 11:06:27 am Views: 70
  • #21856

    http://www.taipeitimes.com/News/worldbiz/archives/2009/03/12/2003438225
    Seiko Epson to see record-high loss on restructuring costs
    Seiko
    Epson Corp, Japan’s largest maker of inkjet printers, widened its
    full-year loss forecast to a record because of costs to reorganize its
    flat-panel and semiconductor operations.
    The net loss will reach 100
    billion (US$1 billion) in the year ending March 31, wider than the ?4
    billion projected last month, the company said yesterday.Seiko Epson
    will book a one-time charge of ?90 billion, including ?66.2 billion in
    restructuring costs at the electronic-device business, which includes
    chips as well as small panels for mobile phones.Seiko Epson is cutting
    back its semiconductor and liquid- crystal-display (LCD) operations and
    focusing on printers and projectors to help weather slumping demand as
    the global recession erodes demand for electronics.

    Suwa,
    central Japan-based Seiko Epson said the reorganization would bolster
    profit by 11 billion next fiscal year, helping it break even.No
    full-time jobs will be cut under the reorganization, general managing
    director Kenji Kubota said at a briefing in Tokyo. Seiko Epson had
    93,279 employees as of Sept. 30, its Web site said.The company will
    close its flat-panel factory in Gifu Prefecture, central Japan, and
    focus output of the devices at its facility in Tottori Prefecture, in
    the west of the country.

    Seiko Epson will also shut its
    semiconductor-production line at a plant in Nagano, central Japan,
    relocating output to a factory in Yamagata, northern Japan. The Nagano
    factory will be closed within three years, spokesman Jun Tezuka said
    earlier yesterday.The printer maker cut its full-year dividend by 32
    percent to ?26 per share. It paid ?32 a year earlier.The net loss would
    be the biggest since the company was formed through the merger of Suwa
    Seikosha Co and Epson Corp in November 1985.The company maintained its
    forecast for operating profit, or sales minus the cost of goods sold
    and administrative expenses, of ?6 billion and sales of 1.14
    trillion.Seiko Epson rose 8 percent to close at 1,088 on the Tokyo
    Stock Exchange before the announcement.