Panasonic expects 3.9-billion-dollar loss: reports
Japan's Panasonic Corp. expects a net loss of 3.9 billion dollars for this financial year to March due to weak sales and restructuring costs amid the economic crisis, news reports said.business Updated: Feb 02, 2009 10:00 IST
Japan's Panasonic Corp. expects a net loss of 3.9 billion dollars for this financial year to March due to weak sales and restructuring costs amid the economic crisis, news reports said on Monday.
Panasonic will forecast the annual loss of 350 billion yen on Wednesday, when it is due to announce its third-quarter earnings, the Asahi newspaper said without citing any sources.
Operating profit is now seen dropping below 100 billion yen, against an earlier projection of 340 billion yen, it said.
It would be Panasonic's first annual loss in seven years.
Panasonic plans to streamline its manufacturing operations and book losses from the falling value of shareholdings and foreign exchange movements, the Mainichi newspaper said.
The company declined to confirm or deny the reports, saying it would announce any forecast revisions on Wednesday.
Last week, the Nikkei business daily said Panasonic would close three plants in Asia and axe hundreds of jobs.
Many major Japanese exporters are bracing for big losses this year as consumers cut spending in response to the recession and financial market turmoil.
Hitachi Ltd. said on Friday it expected a loss of 700 billion yen in the current year to March while Sony Corp. has forecast a record operating loss of 260 billion yen.
The world's biggest automaker Toyota Motor Corp. is reportedly considering revising its projected operating loss for this year to 400 billion yen, from an earlier projection of a 150-billion-yen loss.
First Published: Feb 02, 2009 09:57 IST