Tokyo - Sanyo Electric reported lower net sales, but higher operating profit for the first three quarters of its fiscal year to Dec. 31, 2010.
For the nine months, consolidated net sales were 1.1493 trillion yen, a decrease of 3.1 percent or 36.3 billion yen over the same period last year. Domestic sales decreased by 8.3 percent over the same period last year and ended at 460.5 billion yen, and overseas sales increased by 0.8 percent over the same period last year and ended at 688.8 billion yen.
Operating income increased by 14 percent, or 3.8 billion yen, over the same period last year to 31 billion yen. Despite drops in prices and the abrupt appreciation of the yen, cross-company cost-reduction activities boosted profits, Sanyo said.
Income from continuing operations before income taxes showed a recovery of 51 billion yen over the same period last year and moved 23.2 billion yen into the black and the net income attributable to Sanyo ended at 2.3 billion yen, an improvement of 47.1 billion yen over the same period last year.
In its consumer electronics business sales increased by 8.7 percent over the same period last year to 170.3 billion yen, due to the healthy sales of home appliances, such as rice cookers and cleaning products in the Japanese market, in addition to the sales increase of car electronics products, such as car navigation and audio systems, during the first-half of the year as a result of the recovery of sales in the automotive industry and the positive effect of the subsidy program for eco-friendly vehicles in Japan.
Sanyo's results were reported a day before parent company Panasonic reports its fiscal third quarter report.
Sanyo is estimating a net sales increase for the fiscal year ending March 31, 2010 of 2.8 percent to 1.6 trillion yen, operating income of 40 billion yen, a decrease of 0.9 percent, and a net loss of 25 billion yen.