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Panasonic Posts Annual Loss, Lower Sales

5/11/2012 11:22:16 AM Eastern

Osaka, Japan - Panasonic reported a net loss of 772.2
billion yen from a profit and a 10 percent drop in sales for its fiscal year,
ended March 31.

The net loss of 772.2 billion yen compares with a profit of
74 billion yen in fiscal 2011. Consolidated group sales for fiscal 2012
decreased by 10 percent to 7,846.2 billion yen, from 8,692.7 billion yen in the
prior fiscal year.

Of the consolidated group total, domestic sales amounted to
4,162 billion yen, down 8 percent from 4,514.3 billion yen in fiscal 2011.
Overseas sales decreased by 12 percent to 3,684.2 billion yen, from 4,178.4
billion yen in fiscal 2011.

Panasonic pointed to multiple factors for its fiscal year
performance: concern of the shortages of the electric supply caused by the
Great East Japan Earthquake, the disruption of supply chains affected by the
flooding in Thailand, the economic turmoil triggered by the European financial
crisis, and the historically high yen.

The operating results in the flat-panel TVs and
semiconductor businesses worsened significantly due to factors, such as the
aforementioned severe business conditions and intense price competition.

In Panasonic's AVC
networks unit, sales decreased by 21 percent to 1,713.5 billion yen,
from 2,156.8 billion yen a year ago. Despite favorable sales of PCs, this
result was due mainly to sales declines in flat-panel TVs and digital cameras.
Operating loss was 67.8 billion yen, compared with a profit of

27.3 billion yen a year ago, due
mainly to a sales decrease and a price decline.

Panasonic is predicting positive fiscal 2013 results
following large-scale structural reforms and reorganization. Consolidated
financial forecasts for fiscal 2013 as of May 11, 2012:

  • Sales: 8,100.0 billion yen (vs. FY12: +3
    percent)

  • Operating profit: 260.0 billion yen (vs. FY12:
    +495 percent)

  • Net income attributable to Panasonic
    Corporation: 50 billion yen (vs. FY12 loss of 772.2 billion yen)