Panasonic says will lose $9.6 bn in year to March
Panasonic today said that it will lose 765 billion yen ($9.6 billion) in the year to March, close to its record loss last year and a huge reversal of an earlier forecast for a profit.business Updated: Oct 31, 2012 12:57 IST
Panasonic said Wednesday that it will lose 765 billion yen ($9.6 billion) in the year to March, close to its record loss last year and a huge reversal of an earlier forecast for a profit.
The Japanese electronics giant, which had earlier said it expected to post a net profit of 50 billion yen in the fiscal year to March 2013, also revised down its annual sales forecast to 7.3 trillion yen from 8.1 trillion yen as it undergoes a massive restructuring to save its balance sheet.
The Osaka-based firm also said it lost 685 billion yen alone in the first six months to September as sales slumped on the back of the global slowdown while it also takes on huge restructuring costs.
Panasonic, like its rival Sony, has long suffered in its television business, while its debt was also fanned by the purchase of smaller rival Sanyo.
For the previous fiscal year, Panasonic suffered a record 772.2 billion yen net loss, one of the worst-ever losses for a non-financial Japanese firm.
Japan's electronics sector has been badly hit by the appreciation of the yen, which makes exporters' products less competitive overseas, while falling prices and slow demand at home have also eaten into profits.
Competitors including South Korea's Samsung and US-based Apple are offering stiff competition, with high resolution display technology a key battleground as demand intensifies for smartphones, tablet computers and other gadgets.