Panasonic warns of $13 billion record loss

Restructuring, write-downs put firm in the red

Published on Feb 4, 2012

Japan's Panasonic is bracing for a record net loss of more than 700 billion yen (S$11.5 billion) for the year to March due to the strong yen, Thai floods and acquisition costs, reports said on Friday. -- PHOTO: AFP

TOKYO (REUTERS) - Japan's Panasonic on Friday forecast a record annual net loss of US$10.2 billion (S$12.8 billion), joining beleaguered rivals Sony and Sharp in a sea of red ink as they struggle to fix their broken TV businesses and overcome criticism that they have lost their way.

Panasonic's expected loss of US$10.2 billion for the year to March dwarfs expectations for a US$6.2 billion loss.

The loss was almost entirely due to big restructuring charges and write-downs, including at its Sanyo Electric unit.

Panasonic's grim outlook follows loss forecasts at Sony and Sharp - almost US$17 billion combined for the three Japanese electronics firms - highlighting the impact of fierce competition from foreign rivals such as South Korea's Samsung Electronics, weak demand and a strong yen.