Panasonic Corp. (NYSE: PC) Forecasts Full Year Net Loss

Tallahassee, FL 10/31/2011 (StreetBeat) --Panasonic Corp. (NYSE: PC) stayed in the red in the latest quarter and projected a huge annual loss due to slumping TV sales and a strong yen. The company, which makes consumer electronics such as Viera TVs and Lumix cameras, on Monday reported a loss of 105.8 billion yen ($1.34 billion) for the July-September quarter. Panasonic now expects a loss of 420 billion yen ($5.3 billion) for the fiscal year through March 2012, down sharply from an earlier projection of a 30 billion yen ($380 million) profit.

Panasonic had slumped to a 30.4 billion yen loss in the April-June quarter, hit by damages and lost sales from the March 11 earthquake and tsunami that devastated Japan's northern coast and killed nearly 20,000 people.
Despite signs of recovery from the disaster, the company faces new challenges, including the global economic slump, slowing demand in emerging markets and the strong yen. Sales were down in flat panel TVs, auto electronics, cellphones as well as electronics parts and components.

Earlier Monday, Japanese authorities intervened in the currency market to weaken the yen against the dollar and ease pressure on Japanese exporters. That caused the dollar to jump nearly 5 percent to above 79 yen after earlier touching a post World War II-low of 75.32 yen -- a level that is excruciating for exporters.

Panasonic said its sales dropped 6 percent to 2.08 trillion yen ($26.3 billion) during the July-September quarter from a year earlier. The company suffered a loss of 136.2 billion yen ($1.72 billion) during the first six months of the business year, compared to 74.7 billion yen profit a year earlier. Its sales fell by 8 percent to 4 trillion yen ($50.6 billion). Overseas sales fell more than those at home, the company said.

The loss for the half-year period was largely due to restructuring of flat-panel TV operations and other efforts related to cost cutting. In April, Panasonic said it would cut 17,000 jobs and close up to 70 plants. Sources have said it will slash plasma TV panel output and drop plans for a solar panel factory and a battery plant expansion in Japan.

Shares of the company closed 2.1 percent lower before the results. They have fallen 31 percent so far this year, compared with a 13 percent decline in the broader market.

StreetBeat Disclaimer

Distributed by Viestly