Osaka, Japan - Panasonic reported a net loss and lower sales in its fiscal second quarter, ended Sept. 30, blaming global economic factors, the higher value of the yen and lower prices for CE products.
Panasonic is also projecting a net loss and lower sales for its entire fiscal year ending March 31, 2012.
Consolidated group sales for the second quarter decreased by 6 percent to 2,075.7 billion yen, from 2,206.8 billion yen, compared with the same period a year ago. Net loss attributable to Panasonic amounted to 105.8 billion yen in the quarter, compared with a profit of 31.0 billion yen a year ago.
The Japanese economy was severely affected by the global economic recession, appreciation of the yen and declining stock prices. However, there were signs of recovery with the improvements in production and exports due to the normalization of the supply chain which had been disrupted by the Great East Japan Earthquake, the company said.
Operating profit decreased to 42.0 billion yen from 85.2 billion yen a year ago.
Consolidated group sales for six months ended Sept. 30 dropped by 8 percent to 4,005.2 billion yen, compared with 4,367.9 billion yen in the same period of fiscal 2011. Panasonic's operating profit for the first six months decreased to 47.6 billion yen, from 169.0 billion yen a year ago. Pre-tax loss totaled 159.3 billion yen, compared with a pre-tax income of 144.6 billion yen a year ago.
Net income attributable to Panasonic turned to a loss of 136.2 billion yen from an income of 74.7 billion yen a year ago.
During the first half in its Digital AVC Networks segment sales decreased by 14 percent to 1,432.5 billion yen from 1,657.8 billion yen a year ago. Despite favorable sales of Blu-ray Disc recorders, this result was due mainly to sales decline in flat-panel TVs and mobile phones. Segment loss amounted to 18.1 billion yen, compared with segment profit of 61.3 billion yen a year ago, due mainly to sales decrease and price decline, Panasonic said.
For Sanyo sales decreased by 19 percent to 669.3 billion yen, compared with 829.7 billion yen a year ago. Although sales of solar photovoltaic systems, cold-chain equipments and commercial air conditioners were stable, sales of electronic components, digital cameras, TVs and in-car-related equipment were sluggish. Sales decline owing to the semiconductor business transfer in fiscal 2011 also led to the overall sales decrease. A 26.9 billion yen of segment loss was recorded compared with a segment profit of 6.1 billion yen a year ago, influenced by sales decreases, after incurring the expenses such as amortization of intangible assets recorded at the acquisition, Panasonic said.
Panasonic is also projecting a net loss for fiscal year 2012 ending March 31, 2012 of 420.0 billion yen, compared with the previous forecast of an income of 30.0 billion yen with lower sales of 8,300 billion yen down from the previous 8,700 billion yen.
These changes are primarily due to an expected increase of restructuring expenses of 404.0 billion yen mainly for flat-panel TVs and semiconductor businesses to improve its financial situation. The total business restructuring expenses are now expected to be 514.0 billion yen, which are included in non-operating income/loss (a loss of 560.0 billion yen).
Panasonic has also reorganized its five business segments based on common technology platforms. It will be reorganized into three business fields: Consumer, Components & Devices and Solutions, comprising a total of nine internal companies called business domains and one marketing sector.
Of the more notable segments its AVC Networks Company will be part of the Consumer group led by president Kazuhiro Tsuga and employ 33,000 worldwide. The Automotive Systems Company is now part of the Components & Devices Business Field led by president Masahisa Shibata which will develop, manufacture and sell car-related multimedia and eco-car related equipment and components, employing 11,000 worldwide.
No mention of the Sanyo brand was mentioned in the documents issued this morning about this reorganization or how its operations are part of the plan.