Panasonic Posts 3Q Loss
Panasonic posted a $705.6 million loss on revenues of around $21 billion for its third fiscal quarter of 2009, ending Dec. 31. The Tokyo electronics maker said revenues fell 20 percent in the quarter compared to last year (nearly 1.9 trillion yen versus more than 2.3 trillion a year earlier). Domestic sales were down 10 percent; overseas sales decreased 29 percent.
Panasonic blamed global economic conditions for the downturn. "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," Panasonic said in an earnings release.
"Dow Jones" reported that the company will cut as many as 15,000 jobs from its payrolls through 2010, shut down 27 factories—17 of them in Japan—and trim executive salaries by 10 percent to 20 percent. The resulting restructuring charge is expected to cost 345 billion yen ($3.8 million at current exchange rates).
For the nine months ending Dec. 31, Panasonic's sales revenues decreased 9 percent from the year-earlier period to more than 6.2 trillion yen ($69 billion). Net income was down 70 percent to 65.4 billion yen ($731 million).
Panasonic revised its outlook for the full fiscal year, ending March 31, saying that since a November adjustment, "domestic and overseas markets conditions have further deteriorated."