Panasonic losses spiral to £3.4bn
Friday 11 May 2012
Panasonic's January-March losses ballooned 10-fold to 438 billion yen
(£3.4 billion), completing a year of record red ink at the Japanese
electronics maker battered by natural disasters and an ailing TV
The firm racked up a 40.7 billion yen loss for the same period the previous year.
The Osaka-based maker of Viera TVs and Lumix digital cameras reported today a record loss of 772.2 billion yen (£6 billion), a reversal from the 74 billion yen (£580 million) profit a year ago and among the biggest in Japan's manufacturing history.
That comes a day after Panasonic's arch-rival Sony racked up a record annual loss of 457 billion yen (£3.55 billion) in its fourth straight year of red ink.
Sony, which makes the Walkman portable audio player and PlayStation game machine, had a 255 billion yen (£1.98 billion) loss over January-March - its fifth straight quarterly net loss to round out a fiscal year that was the worst in its 66-year corporate history.
Both companies' TV operations, centring around flat-panel sets, have been battered by a powerful Samsung Electronics Co of South Korea and other Asian players.
A strong yen has also eroded the value of overseas earnings for the Japanese.
Like Sony, which is hoping for a turnaround under a new president, Kazuo Hirai, Panasonic has tapped Kazuhiro Tsuga as president. The appointments still need shareholder approval.
Panasonic is forecasting a return to profit for the fiscal year ending March 2013, at 50 billion yen (£390 million) profit on 8.1 trillion yen (£60 billion) sales, up 3 per cent.
Panasonic does not have the entertainment or gaming businesses of Sony. But it is struggling as it attempts to strengthen solar panel and battery operations, including auto batteries, to find new areas of growth.
Panasonic's sales fell in every major region, including the US, Europe, Japan, China and the rest of Asia.
Life & Style blogs
Half of young women unable to ‘locate vagina’ and 65% find it difficult to say the word
Is Apple's iCloud safe after leak of Jennifer Lawrence and other celebrities' nude photos?
Reader dilemma: My wife only wants to have sex when she's drunk
Three quarters of the Ikea catalogue is CGI
Anal sex study reveals climate of 'coercion'
Rotherham child sex abuse scandal: Labour Home Office to be probed over what Tony Blair's government knew - and when
What do immigrants really think of Britain? Polish immigrant's Reddit post goes viral
Ashya King: Parents of five-year-old boy refused permission to visit him in hospital and denied bail at Spanish court
With Douglas Carswell joining Ukip, my party has taken another giant step forward
When elitism grips the top of British society to this extent, there is only one answer: abolish private schools
Ashya King: 'Cruel NHS has not given us the treatment we need', says father of five-year-old with brain tumour who fled to Spain
- 1 Al Pacino on suffering from depression: 'It can last and it's terrifying'
- 2 Half of young women unable to ‘locate vagina’ and 65% find it difficult to say the word
- 3 Saudis risk new Muslim division with proposal to move Mohamed’s tomb
- 4 A teacher speaks out: 'I'm effectively being forced out of a career that I wanted to love'
- 5 Mexican woman becomes world’s 'oldest person' at 127
iJobs Gadgets & Tech
£30000 - £35000 per annum + benefits: Ashdown Group: A highly successful organ...
£50000 - £55000 per annum + Benefits + Bonus: Harrington Starr: Automation Tes...
£45000 - £55000 per annum + Benefits + Bonus: Harrington Starr: SQL Technical ...
£55000 - £60000 per annum + Benefits + Bonus: Harrington Starr: Lead C# Develo...