Panasonic posts loss, forecasts full year red ink

Oct 31, 2011 By MARI YAMAGUCHI , Associated Press
A man inspects Panasonic TVs at an electronics retailer in Tokyo, Monday, Oct. 31, 2011. Panasonic Corp. stayed in the red in the latest quarter and projected a huge annual loss due to slumping TV sales and the strong yen. (AP Photo/Koji Sasahara)

(AP) -- Panasonic Corp. stayed in the red in the latest quarter and projected a huge annual loss due to slumping TV sales and a strong yen.

The company, which makes consumer electronics such as Viera TVs and Lumix cameras, on Monday reported a loss of 105.8 billion yen ($1.34 billion) for the July-September quarter.

Panasonic now expects a loss of 420 billion yen ($5.3 billion) for the through March 2012, down sharply from an earlier projection of a 30 billion yen ($380 million) profit.

Panasonic had slumped to a 30.4 billion yen loss in the April-June quarter, hit by damages and lost sales from the March 11 earthquake and tsunami that devastated Japan's northern coast and killed nearly 20,000 people.

Despite signs of recovery from the disaster, the company faces new challenges, including the global , slowing demand in and the strong yen. Sales were down in , auto electronics, cellphones as well as electronics parts and components.

Earlier Monday, Japanese authorities intervened in the currency market to weaken the yen against the dollar and ease pressure on . That caused the dollar to jump nearly 5 percent to above 79 yen after earlier touching a post World War II-low of 75.32 yen - a level that is excruciating for exporters.

Panasonic said its sales dropped 6 percent to 2.08 trillion yen ($26.3 billion) during the July-September quarter from a year earlier.

Panasonic suffered a loss of 136.2 billion yen ($1.72 billion) during the first six months of the business year, compared to 74.7 billion yen profit a year earlier. Its sales fell by 8 percent to 4 trillion yen ($50.6 billion). Overseas sales fell more than those at home, the company said.

The loss for the half-year period was largely due to restructuring of flat-panel TV operations and other efforts related to cost cutting.

Panasonic stock fell 2.1 percent to 809 yen on the Tokyo Stock Exchange, which closed just before the earnings report was released.

Explore further: China's Xiaomi raises more than $1 bn in funding

not rated yet
add to favorites email to friend print save as pdf

Related Stories

Panasonic announces Q1 net loss of 560 mln dlrs

Aug 03, 2009

Japanese high-tech giant Panasonic Corp. announced Monday a big first-quarter loss, blaming weak sales of televisions, digital cameras and other electronic goods during the recession.

Panasonic reports loss, plans to cut 17,000 jobs

Apr 28, 2011

(AP) -- Panasonic Corp., Japan's biggest home appliance maker, is cutting about 17,000 jobs worldwide over two years as its losses swell from restructuring costs and damage from the March 11 disasters.

Sony rebounds to profit in April-June quarter

Jul 29, 2010

(AP) -- Sony bounced back to profit last quarter and raised its full-year earnings forecast, fueled by stronger demand for its PlayStation 3 gaming consoles, personal computers and televisions.

Canon profit drops, cuts forecasts due to tsunami

Apr 26, 2011

(AP) -- Canon said its first quarter profit dropped slightly on costs from an acquisition and Tuesday warned that full year earnings would take a hit from disrupted production due to Japan's earthquake and tsunami.

Panasonic trims net loss, sees return to profit

May 07, 2010

Japanese electronics giant Panasonic Corp. said Friday it saw a net loss of 1.1 billion dollars in the year to March 2010, much smaller than the previous year, and expected to return to profit soon.

Toshiba returns to black on smartphone chip demand

Jan 31, 2011

(AP) -- Toshiba Corp. said Monday it returned to the black in the October-December quarter thanks to robust global demand for the flash memory chips used in digital cameras and smartphones.

Recommended for you

China's Xiaomi raises more than $1 bn in funding

21 hours ago

China's top smartphone seller Xiaomi Corp. is raising more than $1 billion in a fresh round of funding, a move which would raise its valuation above $45 billion, a report said Sunday.

Why the Sony hack isn't big news in Japan

Dec 20, 2014

Japan's biggest newspaper, Yomiuri Shimbun, featured a story about Sony Corp. on its website Friday. It wasn't about hacking. It was about the company's struggling tablet business.

Sony faces 4th ex-employee lawsuit over hack

Dec 20, 2014

A former director of technology for Sony Pictures Entertainment has sued the company over the data breach that resulted in the online posting of his private financial and personal information.

Sony tells AFP it still plans movie release

Dec 20, 2014

Sony Pictures boss Michael Lynton denied Friday the Hollywood studio has "caved" by canceling the release of "The Interview," and said it still hoped to release the controversial film.

2012 movie massacre hung over 'Interview' decision

Dec 19, 2014

When a group claiming credit for the hacking of Sony Pictures Entertainment threated violence against theaters showing "The Interview" earlier this week, the fate of the movie's big-screen life was all but ...

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.