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Sanyo Reports Net Loss, Lower Sales For Year

5/14/2009 10:20:00 AM Eastern

Tokyo — Sanyo Electric, which is in the process of being acquired by Panasonic, reported a net loss and lower net sales for its fiscal year, ended March 31.

Sanyo had a net loss of about $970 million in its fiscal year compared with a net profit of $291 million in the prior year. In fiscal year 2008 Sanyo said its profit in the prior year included the sale of operations such as the mobile phone business.

Consolidated net sales total was more than $18 billion, a decrease of 12.2 percent in yen compared with the previous year.

Sanyo said that “despite concentrated cost reduction efforts,” its results were hurt by the sharp yen appreciation, escalation of costs for raw materials in the first half and the overall decrease in sales from the stagnant economy.

Seiichiro Sano, executive director and president of Sanyo, said in a prepared statement the company’s business “really felt the effects of the global economic downturn, especially in the second half of fiscal year 2008, causing the results for this year to be severe.”

He added, “While we expect the business operating environment to continue to be severe, we will continue to focus on our strengths such as the rechargeable- and solar-battery businesses with further concentrated investments despite the current economic situation, as well as enhancing management practices to be able to weather the storm.”

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