Panasonic Corp narrows loss
Japan's Panasonic Corp reported a smaller-than-expected quarterly loss and sharply lifted its half-year outlook as it cuts costs to cope with a firmer yen and weak TV sales, but stuck to its outlook for a second annual net loss.
Panasonic saw sales of its electronics gadgets slow as the global downturn forced consumers to tighten their purse strings, while sluggish corporate capital spending hit demand for its factory automation equipment. Like arch-rival Sony Corp, Panasonic logged a first quarter that beat market expectations and signalled a bottoming-out in demand, but both cautioned that it was still too early to call a recovery.
Panasonic is shutting 40 manufacturing sites and shedding 15,000 jobs to counter the headwind and better compete with Sony, Samsung Electronics Co Ltd and LG Electronics Inc.
Panasonic, which vies with Sony for the title of the world's largest consumer electronics maker, kept its net loss forecast of 195 billion yen (Dh7.56 billion) for the year to next March, although it halved its net loss forecast for the six months to September to 100 billion yen.
Sluggish consumer sentiment in the US and in Europe could continue to weigh on prices of flat TVs, even as the year-end shopping season approaches, he said.
Panasonic's outlook represents a net loss for the full year to next March that is half as big as its 379 billion yen loss last year.
At the operating level, which shows a company's core earnings strength and comes before restructuring charges in Panasonic's accounting method, it maintained its annual outlook for a 75 billion yen profit, up 3 per cent.
In an effort to improve profitability by boosting its presence in the "green energy" business, Panasonic is planning to acquire Sanyo Electric Co Ltd, the world's largest maker of rechargeable batteries.
Panasonic saw sales of its electronics gadgets slow as the global downturn forced consumers to tighten their purse strings, while sluggish corporate capital spending hit demand for its factory automation equipment. Like arch-rival Sony Corp, Panasonic logged a first quarter that beat market expectations and signalled a bottoming-out in demand, but both cautioned that it was still too early to call a recovery.
Panasonic is shutting 40 manufacturing sites and shedding 15,000 jobs to counter the headwind and better compete with Sony, Samsung Electronics Co Ltd and LG Electronics Inc.
Panasonic, which vies with Sony for the title of the world's largest consumer electronics maker, kept its net loss forecast of 195 billion yen (Dh7.56 billion) for the year to next March, although it halved its net loss forecast for the six months to September to 100 billion yen.
Sluggish consumer sentiment in the US and in Europe could continue to weigh on prices of flat TVs, even as the year-end shopping season approaches, he said.
Panasonic's outlook represents a net loss for the full year to next March that is half as big as its 379 billion yen loss last year.
At the operating level, which shows a company's core earnings strength and comes before restructuring charges in Panasonic's accounting method, it maintained its annual outlook for a 75 billion yen profit, up 3 per cent.
In an effort to improve profitability by boosting its presence in the "green energy" business, Panasonic is planning to acquire Sanyo Electric Co Ltd, the world's largest maker of rechargeable batteries.
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