Tokyo: Japan’s Sanyo Electric Co. has reported a net loss of $976 million for the past financial year due to falling sales and restructuring costs but said it expects to break even this year.
Sanyo, which is being bought by its bigger rival Panasonic Corp., said that its net losses reached ¥93.23 billion in the 12 months to March, reversing the previous year’s profit of ¥28.7 billion.
It was the first time in two years the Osaka-based electronics maker had fallen into the red.
The firm’s operating profit tumbled 89.1% to ¥8.28 billion as sales fell 12.2% to ¥1.77 trillion amid the global recession.
“The electronics industry fell into a serious sales slump due to curbs on corporate capital spending and rapidly worsened consumer spending,” the company said in a statement.
Sales plunged in the semiconductor and electronics parts segment as demand and prices rapidly fell for cellphones, personal computers and television sets, it said.
Sanyo expects no profit on a net basis for the current business year as the economic environment is likely to continue to be severe, it said.
But operating profit is forecast to rise to ¥25 billion although sales are projected to fall 6.2% to ¥1.66 trillion.