'Sanyo Electric may cut group net profit'
Sanyo Electric Co. may cut its group net profit forecast for the year to March to near zero due to a strong yen and sluggish sales.business Updated: Jan 11, 2009 13:03 IST
Sanyo Electric Co, the world's top maker of rechargeable batteries and seventh largest maker of solar panels, may cut its group net profit forecast for the year to March to near zero due to a strong yen and sluggish sales, Japanese media reported.
Sanyo had been forecasting a net profit of 35 billion yen ($387 million) for the full business year, up 22 per cent from the year that ended last March.
Company representatives could not be reached for comment.
Sanyo is also likely to cut its operating profit forecast for the year to next March 31 to 30 billion yen from its previous projection of 50 billion yen, Kyodo News reported.
Panasonic Corp, the world's No.1 plasma TV maker, said in December it would spend up to $9 billion to take control of smaller rival Sanyo, creating Japan's second largest electronics maker behind Hitachi Ltd.
Panasonic said it would keep Sanyo listed, and that Sanyo may issue new shares after the tender to ensure liquidity and maintain its listing.
The fall in Sanyo's net profit is due mainly to impairment losses on facilities to make semiconductors, Kyodo said.