Matsushita Electric Industrial Co had a fiscal third-quarter loss because of lower mobile-phone sales and job cut costs, prompting the largest consumer-electronics maker to widen its full-year loss forecast.
The maker of Panasonic and National brands had a loss of ?172 billion (US$1.3 billion) in the three months ended Dec. 31, compared with group profit of ?22.8 billion a year ago.
Matsushita said it now expects an annual loss of ?438 billion, an amount that exceeds its total net income for the past five fiscal years.
Sales fell 13 percent to ?1.74 trillion in the third quarter after revenue at its mobile-phone unit declined by more than half. Though President Kunio Nakamura has vowed to turn the company around next fiscal year, investors are skeptical, saying Matsushita needs to drastically revamp unprofitable businesses.
"Matsushita's reforms are way too slow," said Makoto Suzuki, who manages ?15 billion in investments at Chuo Mitsui Asset Management Co, which holds Matsushita shares. "One of the few positive things about the company is that it has room to trim more costs."
For the full year, Matsushita said job cuts, the reorganization of some businesses and the declining value of its stock holdings will cost it about 350 billion yen.
An economic slowdown in Japan, which accounts for almost half of Matsushita's sales, and slower growth in Europe and the US has also led to less demand for the company's semiconductors, electronics and consumer goods.
Matsushita's shares rose ?6, or 0.4 percent, to ?1,518 before the earnings results were announced. They've fallen about 10 percent since the start of the year, compared with a 2 percent decline in the 152-member Topix Electric Appliances Index.
RETHINK? The defense ministry and Navy Command Headquarters could take over the indigenous submarine project and change its production timeline, a source said Admiral Huang Shu-kuang’s (黃曙光) resignation as head of the Indigenous Submarine Program and as a member of the National Security Council could affect the production of submarines, a source said yesterday. Huang in a statement last night said he had decided to resign due to national security concerns while expressing the hope that it would put a stop to political wrangling that only undermines the advancement of the nation’s defense capabilities. Taiwan People’s Party Legislator Vivian Huang (黃珊珊) yesterday said that the admiral, her older brother, felt it was time for him to step down and that he had completed what he
Taiwan has experienced its most significant improvement in the QS World University Rankings by Subject, data provided on Sunday by international higher education analyst Quacquarelli Symonds (QS) showed. Compared with last year’s edition of the rankings, which measure academic excellence and influence, Taiwanese universities made great improvements in the H Index metric, which evaluates research productivity and its impact, with a notable 30 percent increase overall, QS said. Taiwanese universities also made notable progress in the Citations per Paper metric, which measures the impact of research, achieving a 13 percent increase. Taiwanese universities gained 10 percent in Academic Reputation, but declined 18 percent
CHINA REACTS: The patrol and reconnaissance plane ‘transited the Taiwan Strait in international airspace,’ the 7th Fleet said, while Taipei said it saw nothing unusual The US 7th Fleet yesterday said that a US Navy P-8A Poseidon flew through the Taiwan Strait, a day after US and Chinese defense heads held their first talks since November 2022 in an effort to reduce regional tensions. The patrol and reconnaissance plane “transited the Taiwan Strait in international airspace,” the 7th Fleet said in a news release. “By operating within the Taiwan Strait in accordance with international law, the United States upholds the navigational rights and freedoms of all nations.” In a separate statement, the Ministry of National Defense said that it monitored nearby waters and airspace as the aircraft
UNDER DISCUSSION: The combatant command would integrate fast attack boat and anti-ship missile groups to defend waters closest to the coastline, a source said The military could establish a new combatant command as early as 2026, which would be tasked with defending Taiwan’s territorial waters 24 nautical miles (44.4km) from the nation’s coastline, a source familiar with the matter said yesterday. The new command, which would fall under the Naval Command Headquarters, would be led by a vice admiral and integrate existing fast attack boat and anti-ship missile groups, along with the Naval Maritime Surveillance and Reconnaissance Command, said the source, who asked to remain anonymous. It could be launched by 2026, but details are being discussed and no final timetable has been announced, the source