TOKYO - JAPAN'S Sanyo Electric Co. on Thursday reported a net loss of US$976 million (S$1.43 billion) for the past financial year due to falling sales and restructuring costs but said it expects to break even this year.

Sanyo, which is being bought by its bigger rival Panasonic Corp., said net losses reached 93.23 billion yen in the 12 months to March, reversing the previous year's profit of 28.7 billion yen.

It was the first time in two years the Osaka-based electronics maker had fallen into the red.

Operating profit tumbled 89.1 per cent to 8.28 billion yen as sales fell 12.2 per cent to 1.77 trillion yen amid the global recession.

'The electronics industry fell into a serious sales slump due to curbs on corporate capital spending and rapidly worsened consumer spending,' the company said in a statement.

'Sales plunged in the semiconductor and electronics parts segment' as demand and prices rapidly fell for cellphones, personal computers and television sets, it said.

Sanyo expects no profit on a net basis for the current business year as the economic environment is likely to continue to be severe, it said.

But operating profit is forecast to rise to 25 billion yen although sales are projected to fall 6.2 per cent to 1.66 trillion yen. -- AFP