Asian Suppliers Post Improved Financials

By Steve Smith -- TWICE, 5/17/2010

NEW YORK — Top Asian CE manufacturers reported generally better financials for the fiscal period that ended March 31.

Fiscal year net losses were reduced for Sony, Panasonic and Toshiba, while Samsung reported a strong fiscal first quarter.

Sony reported a sales decrease of 6.7 percent in yen to $77.6 billion, due in part to reduced sales in its consumer products and devices segment in its fiscal year.

The net loss for the year was $439 million, or 40.8 billion yen, down from the prior year’s loss of 98.1 billion yen. Operating income was 31.8 billion, or $342 million, an improvement of 259.6 billion year on year.

In its consumer products and devices segment, sales were down 19.9 percent in yen to $34.7 billion, but its operating loss was 46.5 billion yen, or $500 million, down from the prior year’s loss of 115.1 billion yen.

Panasonic reported a 4 percent drop in sales and a reduced loss for the fiscal year. Consolidated group sales decreased 4 percent to 7,418.0 billion yen, from 7,765.5 billion yen in the prior year. The net loss was 103.5 billion yen, an improvement from a loss of 379.0 billion yen a year ago.

In its digital AVC networks division, sales decreased 9 percent during the year. Despite this sales decline, operating profit significantly improved to 87.3 billion yen, from 3.2 billion yen in fiscal 2009. This was due mainly to streamlining eff orts, the company said.

Toshiba reported net sales for the year were $68.6 billion, or 6,381.6 billion yen, down 272.9 billion yen. Operating income improved in all areas to $1.26 billion, or 117.2 billion yen, a gain of 367.4 billion yen from the prior year’s loss.

The net loss was $212.3 million, or 19.7 billion yen, an improvement of 323.9 billion yen from the previous year.

In its digital products segment, where CE products reside, sales were down 4 percent to $25.4 billion, or 2,363 billion yen worldwide, but operating income was 13.3 billion yen, a gain of 27.5 billion yen from the prior year’s loss.

The segment’s operating profits were driven by its visual products business and storage products businesses, which generated higher sales.

In the fourth quarter Toshiba’s digital products had overall sales of $6.8 billion, or 631 billion yen, a 117.5 billion yen increase. Th e operating loss was $5.8 million, or 600 million yen, a 15 billion yen improvement year on year.

Samsung Electronics reported double- digit sales and profit increases in its first quarter, which ended March 31. Samsung had a net profit of 3.99 trillion won, or $3.6 billion, in the quarter, a 12 percent gain year on year.

Sales were 34.64 trillion won, or $31 billion, for the quarter, a year-on-year gain of 21 percent.

In Samsung’s digital media segment, where CE products are, sales were 12.61 trillion won, up 18 percent from the prior year’s first quarter. For mobile phones, sales were 8.57 trillion won for the quarter, up 8 percent year on year.

In TVs Samsung reported sales of 8.4 million units, a 47 percent increase from the prior year’s first quarter and 64.3 million mobile phones in the first quarter, up 40 percent from the year before.