ID :
60809
Sat, 05/16/2009 - 04:32
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https://oananews.org//node/60809
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Panasonic sees 379 bil. yen net loss in FY 08, to stay in red in FY 09+
TOKYO, May 15 Kyodo -
Panasonic Corp. said Friday it incurred a group net loss of 378.96 billion yen
in fiscal 2008, its first red ink in six years, and is projecting that it will
remain unprofitable in the current business year through next March due to
massive restructuring costs to combat sluggish sales, plummeting prices for
electronic devices and a stronger yen.
The net loss for the year ended in March was a sharp reversal from a
record-high profit of 281.88 billion yen the year before. It was also the
largest since the 427.78 billion yen net loss the company reported in fiscal
2001 when it was hit by the collapse of the information technology bubble.
Its operating profit came to 72.87 billion yen, down 86.0 percent from a year
earlier, but beat its earlier forecast of 60 billion yen. Sales were down 14.4
percent to 7.77 trillion yen.
Joining a string of other Japanese electronics giants, Panasonic, formerly
Matsushita Electric Industrial Co., is expecting a second consecutive annual
net loss totaling 195 billion yen as it plans to book a total of 455.4 billion
yen in restructuring costs for the two business years until March 2010.
''A strong recovery in fiscal 2009 is impossible,'' President Fumio Otsubo said
at a press conference in Tokyo.
On consolidation of manufacturing plants, Makoto Uenoyama, a Panasonic director
in charge of accounting, told reporters earlier in the day that the company
will close a total of 40 production facilities by the end of fiscal 2009,
including the shutdown of 13 domestic and 14 overseas bases announced
previously.
Uenoyama said the electronics maker closed around 20 facilities in fiscal 2008
and plans to close another 20 in fiscal 2009, to be divided roughly equally
between Japan and overseas. Through the efforts, which also include cutting
15,000 jobs worldwide, Panasonic aims to save 135 billion yen in costs in
fiscal 2009.
But Panasonic expects to remain in the black in terms of its operating balance
in fiscal 2009 with a profit of 75 billion yen, up 2.9 percent from fiscal
2008, on sales of 7 trillion yen, down 9.9 percent.
''We are first going to overcome this once-in-a-century economic crisis and
make sure of our survival in fiscal 2009,'' Otsubo said.
In addition to the announced restructuring measures, Otsubo said the company
will also explore ways to introduce price-competitive products that match the
needs of high-growth areas by possibly taking its manufacturing and marketing
abroad.
Specifically, Otsubo said Panasonic will aim for double-digit growth in
emerging countries such as Vietnam and seek to tap growing demand in other new
areas like Indonesia, Mexico and Nigeria.
''We hope to bring about a fundamental reform that will drastically change the
manufacturing process,'' he said, adding he hopes to roll out low-priced
products geared towards the middle-income population in emerging countries.
''We are not going to stop producing high-value products with cutting-edge
technology,'' Otsubo said. ''But a brand like India's Tata Motors Ltd. is
attractive,'' he said, referring to the automaker that is producing the world's
cheapest car called the Nano.
Otsubo said the company will also focus its limited resources on energy
businesses especially ahead of the acquisition of a majority stake in Sanyo
Electric Co., the world's largest supplier of lithium ion batteries.
With Panasonic's announcement, eight of nine major Japanese electronics makers
including Hitachi Ltd. and Toshiba Corp. fell into the red in fiscal 2008 and
six including Sony Corp. are projecting group net losses for the current
business year.
Like its competitors, Panasonic expects the yen's appreciation to continue
eroding profits it makes abroad. For the current business year, the company is
assuming a foreign exchange rate of 93 yen per U.S. dollar and 118 yen per
euro, compared with 101 yen per dollar and 143 yen per euro in fiscal 2008.
Panasonic, the world's top maker of plasma display televisions, said its TV
division fell into the red in fiscal 2008 as demand fell on the back of a
deepening recession and as intense global competition battered its product
prices. Sales of its digital cameras and automotive electronics were also
lackluster.
It plans to sell 15.5 million units of flat-panel TVs in fiscal 2009, compared
with 10.05 million units in fiscal 2008.
Otsubo said there are clear signs that TV demand is beginning to pick up in
Japan, North America and other regions during the April to June quarter,
although he expects the division to remain unprofitable for the full year.
Panasonic plans to pay an annual dividend of 30 yen per share for fiscal 2008,
down from 35 yen a year earlier. For fiscal 2009, it plans to pay an annual
dividend of 10 yen per share.
==Kyodo
Panasonic Corp. said Friday it incurred a group net loss of 378.96 billion yen
in fiscal 2008, its first red ink in six years, and is projecting that it will
remain unprofitable in the current business year through next March due to
massive restructuring costs to combat sluggish sales, plummeting prices for
electronic devices and a stronger yen.
The net loss for the year ended in March was a sharp reversal from a
record-high profit of 281.88 billion yen the year before. It was also the
largest since the 427.78 billion yen net loss the company reported in fiscal
2001 when it was hit by the collapse of the information technology bubble.
Its operating profit came to 72.87 billion yen, down 86.0 percent from a year
earlier, but beat its earlier forecast of 60 billion yen. Sales were down 14.4
percent to 7.77 trillion yen.
Joining a string of other Japanese electronics giants, Panasonic, formerly
Matsushita Electric Industrial Co., is expecting a second consecutive annual
net loss totaling 195 billion yen as it plans to book a total of 455.4 billion
yen in restructuring costs for the two business years until March 2010.
''A strong recovery in fiscal 2009 is impossible,'' President Fumio Otsubo said
at a press conference in Tokyo.
On consolidation of manufacturing plants, Makoto Uenoyama, a Panasonic director
in charge of accounting, told reporters earlier in the day that the company
will close a total of 40 production facilities by the end of fiscal 2009,
including the shutdown of 13 domestic and 14 overseas bases announced
previously.
Uenoyama said the electronics maker closed around 20 facilities in fiscal 2008
and plans to close another 20 in fiscal 2009, to be divided roughly equally
between Japan and overseas. Through the efforts, which also include cutting
15,000 jobs worldwide, Panasonic aims to save 135 billion yen in costs in
fiscal 2009.
But Panasonic expects to remain in the black in terms of its operating balance
in fiscal 2009 with a profit of 75 billion yen, up 2.9 percent from fiscal
2008, on sales of 7 trillion yen, down 9.9 percent.
''We are first going to overcome this once-in-a-century economic crisis and
make sure of our survival in fiscal 2009,'' Otsubo said.
In addition to the announced restructuring measures, Otsubo said the company
will also explore ways to introduce price-competitive products that match the
needs of high-growth areas by possibly taking its manufacturing and marketing
abroad.
Specifically, Otsubo said Panasonic will aim for double-digit growth in
emerging countries such as Vietnam and seek to tap growing demand in other new
areas like Indonesia, Mexico and Nigeria.
''We hope to bring about a fundamental reform that will drastically change the
manufacturing process,'' he said, adding he hopes to roll out low-priced
products geared towards the middle-income population in emerging countries.
''We are not going to stop producing high-value products with cutting-edge
technology,'' Otsubo said. ''But a brand like India's Tata Motors Ltd. is
attractive,'' he said, referring to the automaker that is producing the world's
cheapest car called the Nano.
Otsubo said the company will also focus its limited resources on energy
businesses especially ahead of the acquisition of a majority stake in Sanyo
Electric Co., the world's largest supplier of lithium ion batteries.
With Panasonic's announcement, eight of nine major Japanese electronics makers
including Hitachi Ltd. and Toshiba Corp. fell into the red in fiscal 2008 and
six including Sony Corp. are projecting group net losses for the current
business year.
Like its competitors, Panasonic expects the yen's appreciation to continue
eroding profits it makes abroad. For the current business year, the company is
assuming a foreign exchange rate of 93 yen per U.S. dollar and 118 yen per
euro, compared with 101 yen per dollar and 143 yen per euro in fiscal 2008.
Panasonic, the world's top maker of plasma display televisions, said its TV
division fell into the red in fiscal 2008 as demand fell on the back of a
deepening recession and as intense global competition battered its product
prices. Sales of its digital cameras and automotive electronics were also
lackluster.
It plans to sell 15.5 million units of flat-panel TVs in fiscal 2009, compared
with 10.05 million units in fiscal 2008.
Otsubo said there are clear signs that TV demand is beginning to pick up in
Japan, North America and other regions during the April to June quarter,
although he expects the division to remain unprofitable for the full year.
Panasonic plans to pay an annual dividend of 30 yen per share for fiscal 2008,
down from 35 yen a year earlier. For fiscal 2009, it plans to pay an annual
dividend of 10 yen per share.
==Kyodo
