Panasonic Corp widened its annual net-loss forecast to a record ¥780 billion (US$10.2 billion), making it the latest Japanese electronics company to predict declining earnings because of Thai floods and a slow economy.
The revision, which includes restructuring charges, compares with the ¥420 billion loss Panasonic predicted in October last year. The loss in the 12 months ending next month will be the biggest since Osaka-based Panasonic was founded in 1918, exceeding the ¥427.8 billion in March 2002.
The world’s largest manufacturer of plasma TVs joins domestic peers Sony Corp and Sharp Corp in increasing loss forecasts as they struggle to cope with a slow global economy that is hurting sales after the Thai floods and the March 11 earthquake in Japan crippled plants and suppliers. Panasonic booked a ¥290 billion charge for goodwill writedown, with ¥250 billion stemming from its purchase of Sanyo Electric Co.
Photo: Reuters
“The consumer electronics business and components business are below the company’s plan due to weaker fundamentals and a stronger yen,” Jeff Loff, a senior analyst with Macquarie Capital Securities in Tokyo, said before the announcement.
Operating profit will likely total ¥30 billion in the year ending next month, compared with the company’s previous forecast of ¥130 billion, Panasonic said. The company cut its forecast of annual revenue to ¥8 trillion from ¥8.3 trillion.
The company cuts its capital expenditures plan to ¥300 billion from ¥320 billion.
For the three months ended Dec. 31, the company reported a net loss of ¥197.6 billion, compared with the ¥3 billion average of four analyst estimates compiled by Bloomberg.
The maker of Viera televisions and Lumix cameras halted operations in October at its three factories in Thailand making home appliances and other products following the nation’s worst floods in 70 years. The world’s No. 4 TV maker cut its annual sales target to 18 million sets.
The company is boosting output and buying more parts overseas as gains in the yen make it more expensive to manufacture in Japan.
Global liquid-crystal-display TV shipments probably gained 8 percent to 206 million units last year, falling short of an earlier projection of 211 million units, according to an October forecast by DisplaySearch. The shipments rose 13 percent in the quarter ended Dec. 31 from a year earlier, according to the researcher, which estimates annual shipments to rise 10 percent this year.
Panasonic will invest ¥45 billion to build a plant for solar cells and modules in Malaysia, the company said in November. The company, which also makes microwave ovens, rice cookers and cordless drills, is shifting its procurement base to Singapore from Osaka to buy more parts in Asia.
Zhang Yazhou was sitting in the passenger seat of her Tesla Model 3 when she said she heard her father’s panicked voice: The brakes do not work. Approaching a red light, her father swerved around two cars before plowing into a sport utility vehicle and a sedan, and crashing into a large concrete barrier. Stunned, Zhang gazed at the deflating airbag in front of her. She could never have imagined what was to come: Tesla Inc sued her for defamation for complaining publicly about the vehicles brakes — and won. A Chinese court ordered Zhang to pay more than US$23,000 in
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday held its first board of directors meeting in the US, at which it did not unveil any new US investments despite mounting tariff threats from US President Donald Trump. Trump has threatened to impose 100 percent tariffs on Taiwan-made chips, prompting market speculation that TSMC might consider boosting its chip capacity in the US or ramping up production of advanced chips such as those using a 2-nanometer technology process at its Arizona fabs ahead of schedule. Speculation also swirled that the chipmaker might consider building its own advanced packaging capacity in the US as part
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday said that its investment plan in Arizona is going according to schedule, following a local media report claiming that the company is planning to break ground on its third wafer fab in the US in June. In a statement, TSMC said it does not comment on market speculation, but that its investments in Arizona are proceeding well. TSMC is investing more than US$65 billion in Arizona to build three advanced wafer fabs. The first one has started production using the 4-nanometer (nm) process, while the second one would start mass production using the
US President Donald Trump has threatened to impose up to 100 percent tariffs on Taiwan’s semiconductor exports to the US to encourage chip manufacturers to move their production facilities to the US, but experts are questioning his strategy, warning it could harm industries on both sides. “I’m very confused and surprised that the Trump administration would try and do this,” Bob O’Donnell, chief analyst and founder of TECHnalysis Research in California, said in an interview with the Central News Agency on Wednesday. “It seems to reflect the fact that they don’t understand how the semiconductor industry really works,” O’Donnell said. Economic sanctions would