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Sanyo Reports First Profit in 4 Yrs.

5/22/2008 02:29:00 PM Eastern

Tokyo — Sanyo reported a profit in its fiscal year for the first time in four years.

The net profit for the year, ended March 31, was $277.6 million, a recovery of $716.8 million over the previous fiscal year’s loss.

As for operating profit, in spite of the escalating costs of raw materials and the appreciation of the Japanese yen, fiscal year 2007 ended with an operating profit of $736.1 million, an increase of 78.7 percent over the last year thanks to increased sales in digital cameras and rechargeable batteries, and electronic devices.

Consolidated sales total rose for the year by 7.2 percent to $19.5 billion, compared with the previous year.

In Sanyo’s overseas markets, there were favorable and increased sales in digital cameras, rechargeable batteries and solar photovoltaic modules as well as strong sales in commercial-use air conditioners, showing a strong increase of 15.9 percent from the previous year to $12.3 billion.

As for operating profit, in spite of the escalating costs of raw materials and the appreciation of the Japanese yen, fiscal year 2007 ended with an operating profit of $736.1 million, an increase of 78.7 percent over the last year thanks to increased sales in digital cameras and rechargeable batteries, and electronic devices.

Sanyo also announced its new ‘”Mid-term Management Plan,” a new three-year (fiscal year 2008 to fiscal year 2010) plan based on the “Master Plan” announced last November, making clear the path to profitability and ensuring future sustainable growth. Within the plan, more specific target goals were outlined, all focusing on completing the ‘”Challenge 1000,” a challenge for the group to achieve an operating profit of 100 billion yen within 1000 days (approximately three years).

Seiichiro Sano, executive director and president of Sanyo, commented, “The results of FY 2007 eclipsed the forecast in terms of profit, surging as much as 78.7 percent compared to last year, and have moved the balance sheet back into the black after four fiscal years.“