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.
  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.


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