Panasonic predicts loss of $10 billion for fiscal year
2/3/2012 11:07 AM EST
LONDON – Panasonic, one of the Japanese electronics giants, has said that it expects to make a net loss of 780.0 billion yen (about $10.2 billion) in the fiscal year that runs to March 31, 2012.
The forecasted loss is nearly double that of the previous guidance of a net loss of 420.0 billion yen (about $5.5 billion). The updated forecast was made as Panasonic announced its third fiscal quarter results.
Panasonic blamed the Great East Japan Earthquake and the flooding in Thailand for its poor results in the third quarter and in the first nine months of the financial year. It added that the global economic slowdown and European debt crisis were causing uncertainty and inhibiting spending.
The company joins other Japanese companies that have produced poor results in this season, including Toshiba and Sony. This is partly due to poor comparison with a year ago when there was high demand as a result of an eco-point stimulus package provided by the Japanese government.
In particular it seems that Japanese television manufacturers are struggling to compete with south-east Asian competition in LCD television.
Panasonic has revised its previous annual sales forecast of 8,300.0 billion yen downward to 8,000.0 billion yen (about $105 billion) because of significant sales declines in mainly digital products.