NEC likely to see little free cash flow in fiscal 2013
TOKYO -- NEC, which had aimed to boost free cash flow in the year through this coming March, is now expected to end fiscal 2013 with its coffers nearly empty after buying back the rights to real estate it occupies.
The company had expected free cash flow to rise 40% on the year to 60 billion yen ($570 million). But in late September, NEC spent about 57.5 billion yen to repurchase trust beneficiary rights to a complex it occupies in Kawasaki, Kanagawa Prefecture.
NEC securitized the property in 2002 and had been spending several billion yen a year on rent.
The company's year-end cash standing for fiscal 2013 may yet change, depending on the timing of the planned sale of subsidiary NEC Biglobe.