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November 24, 2010, 10:35 PM EST
By Jason Clenfield and Yoshinori Eki
(Updates with CFO’s comment on M&A in third paragraph.)
Nov. 25 (Bloomberg) -- Nippon Telegraph & Telephone Corp., Japan’s biggest telecommunications company, aims to increase operating profit from overseas businesses to more than $500 million in the year ending March 2013.
The company is targeting an operating profit margin of more than 5 percent on $10 billion in overseas sales, Chief Financial Officer Hiroo Unoura said today in an interview at the company’s Tokyo headquarters. NTT’s overseas businesses will “just about break even” on an operating basis in the current year, he said.
NTT agreed in July to buy Dimension Data for 2.1 billion pounds ($3.3 billion) to build its business abroad and expand in computer services as the domestic market slows. The company is considering other overseas deals to boost its security and cloud businesses and gain access to locally recognized brand names, Unoura said, adding NTT is “still weak” in South America.
NTT fell 0.5 percent to 3,785 yen at the 11 a.m. trading break in Tokyo, while the benchmark Nikkei 225 Stock Average rose 0.4 percent. The company, which owns a controlling stake in NTT Data Corp., has risen 3.7 percent this year.
“We can’t grow without increasing our business with foreign companies,” the 61-year-old executive said. “We might end up needing a brand name other than NTT to do that.”
--Editors: Terje Langeland, Vipin V. Nair
To contact the reporters on this story: Jason Clenfield in Tokyo at jclenfield@bloomberg.net; Yoshinori Eki in Tokyo at yeki@bloomberg.net
To contact the editor responsible for this story: Anand Krishnamoorthy at anandk@bloomberg.net
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(Updates with CFO’s comment on M&A in third paragraph.)
Nov. 25 (Bloomberg) -- Nippon Telegraph & Telephone Corp., Japan’s biggest telecommunications company, aims to increase operating profit from overseas businesses to more than $500 million in the year ending March 2013.
The company is targeting an operating profit margin of more than 5 percent on $10 billion in overseas sales, Chief Financial Officer Hiroo Unoura said today in an interview at the company’s Tokyo headquarters. NTT’s overseas businesses will “just about break even” on an operating basis in the current year, he said.
NTT agreed in July to buy Dimension Data for 2.1 billion pounds ($3.3 billion) to build its business abroad and expand in computer services as the domestic market slows. The company is considering other overseas deals to boost its security and cloud businesses and gain access to locally recognized brand names, Unoura said, adding NTT is “still weak” in South America.
NTT fell 0.5 percent to 3,785 yen at the 11 a.m. trading break in Tokyo, while the benchmark Nikkei 225 Stock Average rose 0.4 percent. The company, which owns a controlling stake in NTT Data Corp., has risen 3.7 percent this year.
“We can’t grow without increasing our business with foreign companies,” the 61-year-old executive said. “We might end up needing a brand name other than NTT to do that.”
--Editors: Terje Langeland, Vipin V. Nair
To contact the reporters on this story: Jason Clenfield in Tokyo at jclenfield@bloomberg.net; Yoshinori Eki in Tokyo at yeki@bloomberg.net
To contact the editor responsible for this story: Anand Krishnamoorthy at anandk@bloomberg.net
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