Mitsubishi Electric looks to earnings revision

Mitsubishi Electric has described as "speculative" reports in a Japanese newspaper that the company is intending to reduce its...

Mitsubishi Electric has described as "speculative" reports in a Japanese newspaper that the company is intending to reduce its earnings forecast for the 2001 fiscal year from $1.2bn (£820m) to $328m.

Matthew Nicholson, a company spokesman, said: "We are going to do a revision for our earnings forecast some time in September."

The company announced its operating income forecast in late April and has not revised the outlook since. Since late July, each of Japan's five major semiconductor makers - with the exception of Mitsubishi Electric - have revised their earnings forecasts or announced restructuring efforts to deal with the turmoil in the world IT market.

NEC and Fujitsu announced earnings revisions in late July and followed with restructuring steps shortly afterwards. Toshiba followed with the announcement of an earnings revision and plans to cut 18,800 jobs in mid August, and by the end of the month Hitachi had made a similar move, announcing 14,700 job cuts across the company.

In addition to the major semiconductor makers, many of Japan's other electronics companies have also been revising earnings or cutting jobs as the worldwide slowdown in the IT market begins to bite in Japan.

Kyocera is laying-off around 10,000 people at its overseas units this year and Oki Electric has announced plans to lay-off 2,200 workers.

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