EPSON TO SEE RECORD-HIGH LOSSES

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EPSON TO SEE RECORD-HIGH LOSSES

 user 2009-03-17 at 11:05:54 am Views: 62
  • #21854

    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.