Renesas Electronics reduces net sales forecast by 83billion yen

The semiconductor specialist has also reduced 83bn yen from the original forecast for semiconductor sales, which it now expects to total 778bn yen. According to Renesas, the semiconductor market downturn has been affected by factors such as stagnant global economy, the impact of Thailand's flood and the continuous trend of yen appreciation. As a result, Renesas says its semiconductor sales for the last three months of 2011 were below its expectations. The company also anticipates semiconductor sales to fall for the three months ending March 31 2011 due to what it describes as 'a depressed market condition' that it expects to continue during the three months. As a result, the downward revision has been announced and Renesas expects sales from mcus, analogue and power devices and SoC solutions to decline from the previous forecast. Earnings forecasts have been lowered for semiconductor sales, with an operating loss of 48bn yen forecasted – 20bn down from Renesas' previous forecast. Ordinary loss is expected to be 54bn yen – 17bn down; and net loss is expected to be 57bn yen – 17bn yen down. The consolidated financial forecasts for the fiscal year ending March 31, 2012 are based on the rate of 78 yen per USD and 100 yen per Euro.