Matsushita has increased the expected pre-tax loss for its full-year results.
As the company released third quarter results which showed a 13% fall in sales to ¥1.7tr ($13.16bn), it warns that global economic conditions remain unclear and the "severe" business environment will continue in Q4.
It has maintained its expectation for full-year sales. An 11% fall on the previous year is forecast to result in a figure of around ¥6.8tr.
But instead of a full-year pre-tax loss of ¥370bn, the company now expects a loss of ¥585bn. Net loss for the year is expected to be ¥438bn compared with earlier forecasts of a loss of ¥265bn.
Underlying the forecast is the fact that, while the US economy has recovered somewhat since the terrorist attacks of 11 September, the Japanese economy has worsened, while wider Asian and European economies also weakened.
Reductions in fixed costs as well as parts and materials costs were not sufficient to offset declines in sales, especially in mobile comms equipment.