Two Japanese electronics groups issue profits warnings

Two leading Japanese electronics groups have issued profit warnings because of falling demand and fierce price competition.

NEC says group net profit will be a third lower than forecast.

It blames the decline in chip prices and slowing demand for personal computers.

Matsushita predicts its net profits will be almost halved, largely due to slowing demand for mobile phones and PCs.

Recently Sony and Toshiba joined the growing ranks of US PC and chipmakers to issue warnings.

Koji Nishigaki, the NEC president, has pledged to weed out loss-making divisions and invest in new technologies.