Justice Sirikah

Panasonic Corporation (NYSE: PC) Sinks to a First Fiscal-Year Loss Since 2001

by Justice Sirikah May 15, 2009
Wheels of fortune turned tables on Panasonic Corporation (NYSE: PC) for the first time since 2001. The big-name electronics concern reported on Friday that the rapid appreciation of the Yen and the prolonged global economic slowdown set off a downward trajectory on the demand side, both domestic and export orders, during the financial year through March, 2009.
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  Under the severe circumstances, the company which changed its name from Matsushita Electric end of last year suffered a net loss of $3.9 billion for the fiscal year 2008. Ironically, the company turned in record earnings of $2.9 billion for the preceding financial year. Net loss for the January – March business period amounted to $4.6 billion, from a profit of $698 million for the fiscal fourth quarter of the previous year.

  Revenues for the year backslid by 14 percent to $81.7 billion, while operating profit came down by 86 percent to $766 million. The company said its operations were also affected by the soaring restructuring expenditure (amounting to $3.8 billion) and the slumping sales of flat-screen televisions, semiconductors and digital cameras due to the intensity of price competition.

  Panasonic became the latest of Japanese corporations that has seen record-low inflows in revenues recently on rising export costs caused by the stronger Yen. On May 14, for the first time in 14 years, rival electronics company Sony Corporation (NYSE:SNE) declared a yearly loss of $979 million, while SANYO Electric Co., Ltd. (OTC: SANNY), which will soon be Panasonic’s subsidiary subsequent to the ongoing legal clearance, reported a net loss of $979 for the fiscal year 2008, on sales of $18.5 billion.

  Lately, Toyota Motor Corporation (NYSE: TM) posted an all-time worst fiscal fourth quarter loss of $7.72 billion, on revenues of $35.7 billion. The country’s third biggest automaker by volume, Nissan Motor Co., Ltd. (NASDAQ: NSANNY) registered a full year 2008 net loss of 2.4 billion, with revenues declining by 22 percent to $83.7 billion.

  On projections for fiscal 2010 ending March 31, 2010, Panasonic indicated that it expected to muster revenues of $73.6 billion on a net loss of 2 billion as the consumers are likely to continue cutting back on high-priced goods in the light of the continuing global recession. The company’s stock closed at $14.62 on May 14.

Reference:
http://www.panasonic.net/

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