Panasonic cleans house with writedowns, sees $12b loss
TOKYO (REUTERS) - Panasonic will lose 765 billion yen (S$11.7 billion) in its business year to March as it cleans house of risky assets, writing down billions of dollars of goodwill and assets in its mobile and energy units while its new boss readies for a fresh bout of restructuring.
Panasonic, founded in 1918, is heading for a fourth net loss in five years. It reported a record net loss of 772 billion yen in its previous business year. The result will boost its cumulative loss over five years to nearly US$25 billion (S$30.4 billion).
Mr Kazuhiro Tsuga, who became Panasonic's president this year, has promised a harsh revamp, to be unveiled by next March, that is expected to beat a path away from money-losing TVs and other consumer electronics.
Panasonic's multibillion-dollar write offs, including deferred tax assets, are a sign that Mr Tsuga is already scaling back businesses that do not add to the bottom line as a weak global economy takes its toll.