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| Sunday, 31 March 2002 |
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World |  |
| News Business Features Editorial
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Japan's
NTT to suffer 15 billion dollar extraordinary loss: report TOKYO, March 30 (AFP) - Japan's Nippon Telegraph and Telephone Corp. (NTT) is expected to suffer an extraordinary group loss of about two trillion yen (15 billion dollars) in the year to March 31, a press report said Saturday. The loss is due to underperforming overseas investments and increased restructuring costs, Kyodo News said quoting informed sources. It includes about one trillion yen posted by mobile phone giant NTT DoCoMo Inc. due to poorly performing overseas investments and 500 billion yen by NTT's two regional entities, the report said. The two regional firms, NTT East Corp. and NTT West Corp., had to pay special retirement benefits in their drastic personnel reduction programs, the report said. As a result, the NTT group's net loss may reach one trillion yen in the fiscal year, a record loss for any Japanese business, and eclipsing 684.3 billion yen posted by Nissan Motor Co. Ltd. in the year to March 2000, the sources said. The estimated earnings are far worse than forecasts NTT made last November in which it said a group extraordinary loss would be 944 billion yen and a group net loss 331 billion yen, Kyodo said. In an effort to promote its "i-mode" Internet-linked mobile phones, NTT DoCoMo has invested about 1.8 trillion yen in cellular phone businesses in Europe and Asia. But the company saw disappointing results in these investments, including a 260 billion yen loss in the valuation of shares it has in its Dutch cell phone affiliate KPN Mobile N.V., the report said. Moreover, Japan's largest mobile phone operator will book appraisal losses on equity holdings in AT and T Wireless Services Inc. of the United States, the report added. |
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