Japan English
Dear Shareholders and Investors,
I would like to express my sincere sympathies to the victims of the Great East Japan Earthquake and my wishes for a quick recovery of the damaged areas.
As for financial results for the six months ended September 30, 2011, consolidated net sales were 450.6 billion yen, a decrease by 23.3% year on year. This decrease was mainly due to a production reduction after a temporary suspension of operation at Renesas Group factories affected by the earthquake, as well as weak market demand along with global economy downturn, and continuous strong yen trend. Consolidated operating loss was 29.2 billion yen, worsened by 29.9 billion yen year on year mainly owing to a decrease in sales despite of holding down selling, general and administrative expenses by streamlining R&D operations. Consolidated net loss was 42.0 billion yen after recording 17.6 billion yen special losses including a loss on disaster.
In relation to an interim dividend to our shareholders, truly to regret, we decided to omit dividend payment as we expect to post consolidated net loss for the fiscal year ending March 31, 2012. Renesas Group is striving to improve earnings and financial position in order to resume dividend distribution.
The devastating earthquake of March 2011 forced us to suspend production at eight Renesas Group factories. In particular, the Naka Factory in Ibaraki Prefecture, which is one of our core production sites, was severely damaged. To swiftly resume operations, we utilized the resources of the entire group along with the enormous support of companies outside our group and as a result, recovery work has been finished in September at factories that were damaged. We would like to express our sincere gratitude to everyone who played a part in enabling us to complete this enormous task.
Renesas Group will further accelerate on business structural reforms to realize stable profit structure. We greatly appreciate your kind understanding and your continuous support.
Sincerely,
December 2011
Representative Director & President
Renesas Electronics Corporation