TOKYO: Japanese consumer electronics giant Panasonic has reported a near-record net loss of 754 billion yen ($ 7.5 billion) for the fiscal year through March due to restructuring costs and slumping sales, but predicted a return to the black this year as it prunes unprofitable businesses.
The Osaka-based company, which makes Viera TVs and Lumix digital cameras, has been battered by plunging prices, the strong yen, an ailing TV business and intense competition from the likes of South Korea's Samsung Electronics Co.
A good chunk of the net loss came from hefty restructuring expenses, including impairment losses as the company wrote down the value of assets related to its solar, lithium-ion and mobile phone businesses.
The company also reduced its global staff over the year from 330,767 to 293,742.
Sales declined 7 percent during the year to 7.3 trillion yen, the company said in its financial results, citing a "severe business situation" in the electronics industry, including sluggish demand for flat-panel TVs.
Panasonic, which lost a record 772 billion yen the previous year — one of the biggest losses ever in Japan — acknowledged that its three-year business plan had fallen far short of the desired results.
Under its next three-year management plan, it promised to immediately eliminate unprofitable businesses.
For this fiscal year, it projected a net profit of 50 billion yen ($ 500 million).
In late March, President Kazuhiro Tsuga said the company will persist with trying to fix its ailing TV business, describing an exit from the fiercely competitive industry as a "final resort."
Panasonic said sales of its plasma TV had fallen by about half, while LCD TVs suffered a 3 percent decline.
Panasonic, established in 1918 and an archrival to Sony Corp. during Japan's rapid industrialization following the Second World War, has been shifting its business from consumer electronics to focus more on operations that cater to other businesses such as batteries and solar panels.
The company said it plans to restructure its TV, semiconductor, mobile phone, circuit board and optical product businesses so that they will become profitable by fiscal 2016.
It remains strong in household appliances, with sales of refrigerators and washing machines both growing during the year.
With the dollar breaking above 100 yen Friday for the first time in four years, Panasonic is likely to benefit as the yen's weakness boosts foreign earned income. But the company's exposure to fluctuations against the US dollar has shrunk over the years due to hedging and other practices, said Hideaki Kawai, managing director in charge of accounting and finance.
A weakening of 1 yen against the dollar is expected to boost operating profit this year by 1 billion yen, he said.
Panasonic reports big loss but forecasts profit
Panasonic reports big loss but forecasts profit
Closing Bell: Saudi main index closes in red at 10,847
RIYADH: Saudi Arabia’s Tadawul All Share Index dipped on Wednesday, losing 58.51 points, or 0.54 percent, to close at 10,847.93.
The total trading turnover of the benchmark index was SR3.78 billion ($1 billion), as 73 of the listed stocks advanced, while 187 retreated.
The MSCI Tadawul Index decreased, down 7.09 points or 0.48 percent, to close at 1,472.98.
The Kingdom’s parallel market Nomu lost 178.75 points, or 0.77 percent, to close at 22,916.83. This comes as 30 of the listed stocks advanced, while 37 retreated.
The best-performing stock was the Power and Water Utility Co. for Jubail and Yanbu, with its share price surging by 8.47 percent to SR31.24.
Other top performers included Saudi Paper Manufacturing Co., which saw its share price rise by 6.13 percent to SR53.70, and Jamjoom Pharmaceuticals Factory Co., which saw a 4.58 percent increase to SR137.
On the downside, the worst performer of the day was CHUBB Arabia Cooperative Insurance Co., whose share price fell by 5.14 percent to SR17.53.
Saudi Kayan Petrochemical Co. and Arabian Internet and Communications Services Co. also saw declines, with their shares dropping by 4.87 percent and 4.43 percent to SR4.88 and SR181.40, respectively.
On the announcement front, Saudi Kayan Petrochemical Co. announced its annual financial results for 2025, with sales dropping 3.06 percent year-on-year to SR8.45 billion. The company also recorded a net loss of SR893.86 million.
In a Tadawul statement, the company said the net loss and decline in annual sales were driven by a drop in average selling prices, despite higher sales volumes.
