Tokyo: Japanese electronics maker Panasonic Corp forecast an annual net loss of 420 billion yen (Dh19.73 billion), its biggest in a decade, as restructuring costs ballooned, and a soaring yen and weak demand in the United States and Europe eroded income.
Panasonic accelerated the pace of restructuring as it races to shake off losses at its TV unit — a problem it shares with rival Sony — and strips out overlapping businesses after its buyout of subsidiary Sanyo.
In April, Panasonic said it would cut 17,000 jobs by March 2013, but the maker of Viera televisions and Lumix cameras announced yesterday it now expects to reach its goal of slimming its work force to 350,000 or fewer a year ahead of schedule.
Panasonic said it will stop liquid-crystal panel production at its Mobara plant near Tokyo and is cancelling its plans to ship plasma-panel manufacturing equipment to Shanghai to start production there as it aims to turn a profit on TVs in its next fiscal year.
"The net loss of 420 billion yen (Dh19.73 billion) includes an increase in the cost of restructuring. It has lowered the assumed exchange rates to 76 yen, which gives the company some buffer even if the dollar slips from the current level after today's intervention," said Hiroyuki Fukunaga, CEO of Investrust.
"So even though it is reporting a loss, the market may think all the negative factors have been priced in, especially given that its share price has fallen about a third from around 1,200 yen at the beginning of this year."