NTT endures big loss

STAFF WRITER

Wed, May 15, 2002 - Page 21

Nippon Telegraph & Telephone Corp turned to a second-half loss and posted the biggest full-year loss ever by a non-financial Japanese company after taking charges to write down the value of overseas investments and reorganize its business. The world's biggest phone company reported a group loss of Japanese yen 550.3 billion (US$4.3 billion) for the six months ended March 31, compared with net income of Japanese yen 288.7 billion a year ago. Sales fell 0.7 percent to Japanese yen 5.88 trillion. NTT racked up losses after booking charges to pay 100,000 workers to take lower-paid jobs and write down overseas investments made by mobile unit NTT DoCoMo Inc. With growth slowing in Japan's cellular-phone market, the source of most of the NTT group's profit in recent years, the company plans to cut costs and spending. Tokyo-based NTT expects full-year net income of Japanese yen 361 billion.