Panasonic said its operating profit fell 84 percent year over year in its third fiscal quarter, which ended Dec. 31. Panasonic also forecast a net loss of 380 billion yen (US$4.25 billion) for the fiscal year — a dramatic reversal of its previous outlook for a net profit of 30 billion yen (US$335 million).
Panasonic attributed the poor financial performance to the rapid appreciation of the Japanese yen and sluggish consumer spending worldwide. “Under these severe circumstances, aiming at getting out of this difficult situation and getting growth back on original track, Panasonic is implementing initiatives for achieving further progress and strengthening management structure,” the company said.
Slashing Jobs
In the first nine months of Panasonic’s fiscal year, flat-panel TV sales rose nine percent in comparison with a year earlier. Moreover, the company’s DVD recorder sales rose seven percent.
However, global sales of Panasonic’s digital cameras in the last nine months of 2008 slid 11 percent year over year. Sluggish sales of computing gear and automotive electronics also led to a 13 percent decrease in the sale of information and communications equipment.
Sales at Panasonic’s digital audio-visual unit fell seven percent compared to the last nine months of 2007. Global sales of electronic components and devices fell 14 percent year over year, while home-appliance sales fell four percent.
In response, Panasonic plans job cuts of 15,000 employees in its global workforce through March 2010, which suggests the company does not expect a recovery this year. Panasonic also expects to close 13 plants in Japan, shutter 14 other manufacturing sites at overseas locations, and withdraw from unspecified business activities.
Japan’s Dilemma
The world’s largest plasma TV maker received more bad news this week when DisplaySearch reported that shipments in the global plasma display panel industry fell 12 percent year over…