TOKYO--(BUSINESS WIRE)--Renesas Electronics Corporation (TSE:6723) (“Renesas Electronics”) today announced the recording of special losses for the year ended March 31, 2014 (the period from April 1, 2013 to March 31, 2014).
1. Outline of the special losses
(1) Business structure improvement expenses
As announced in “2. Structural Reforms” of the press release, “Renesas Electronics Shows Direction of Renesas Group” dated August 2, 2013, Renesas Group recorded an impairment loss and others (consolidation-related expenses) of 3,500 million yen as special loss for the fourth quarter ended December 31, 2013.
In addition, in connection with the reversal of the long-term accounts receivable-other owned by the Group’s consolidated subsidiary, Renesas Group recorded business structure improvement expense of 5,729 million yen as special loss for the year ended March 31, 2014.
(2) Loss on abolishment of retirement benefit plan
In connection with the accounting of withdrawal from the retirement benefit trust account of NEC Corporation in accordance with the integration of the corporate pension plan implemented on April 1, 2014, Renesas Group recorded loss on abolishment of retirement benefit plan of 9,116 million yen as special loss for the year ended March 31, 2014.
2. Impact on Renesas’ financial results
The impact of the recording of special losses on business performance has been incorporated into the financial results for the year ended March 31, 2014, announced today.
The statements in this press release with respect to the plans, strategies and financial outlook of Renesas Electronics and its consolidated subsidiaries (collectively “we”) are forward-looking statements involving risks and uncertainties. We caution you in advance that actual results may differ materially from such forward-looking statements due to several important factors including, but not limited to, general economic conditions in our markets, which are primarily Japan, North America, Asia, and Europe; demand for, and competitive pricing pressure on, products and services in the marketplace; ability to continue to win acceptance of products and services in these highly competitive markets; and fluctuations in currency exchange rates, particularly between the yen and the U.S. dollar. Among other factors, downturn of the world economy; deteriorating financial conditions in world markets, or deterioration in domestic and overseas stock markets, may cause actual results to differ from the projected results forecast.
About Renesas Electronics Corporation
Renesas Electronics Corporation (TSE: 6723), the world’s number one supplier of microcontrollers, is a premier supplier of advanced semiconductor solutions including microcontrollers, SoC solutions and a broad-range of analog and power devices. Business operations began as Renesas Electronics in April 2010 through the integration of NEC Electronics Corporation (TSE:6723) and Renesas Technology Corp., with operations spanning research, development, design and manufacturing for a wide range of applications. Headquartered in Japan, Renesas Electronics has subsidiaries in 20 countries worldwide. More information can be found at www.renesas.com.