Panasonic books US$10 billion annual loss, largest ever by Japan manufacturer

The Japanese manufacturer was hit by falling sales of its electronics, but also booked a bevy of one-time restructuring fees

Panasonic said Friday it booked a loss of nearly US$10 billion for the fiscal year that ended March 31, the largest ever loss by a Japanese manufacturer according to local media.

The Osaka-based electronics firm is in the midst of company-wide restructuring that includes the continued integration of Sanyo Electric and a shift to green technologies such as solar power and rechargeable batteries. It is also implementing a management shift, with Kazuhiro Tsuga, the head of its consumer electronics and TV business, to take over as President from Fumio Ohtsubo in June.

Panasonic, like many of its domestic rivals, is struggling to make its consumer products profitable as price drops squeeze margins. The company's results announcement comes a day after Sony said it booked a record net loss last fiscal year. Both companies are weighed down by their loss-making TV businesses, with Panasonic paying for heavy bets it has made on plasma flat-screen technology.

Like Sony, Panasonic predicts a recovery in the current fiscal year: It is targeting a ¥50 billion profit, less than one percent of its revenue forecast.

Panasonic said Friday it swung to ¥772 billion (US$9.7 billion) in the red, down from a ¥74 billion profit a year earlier. While much of the massive loss came from one-off restructuring charges and tax expenses, the company saw revenue fall 10 percent and operating profit, often viewed as a reflection of actual business performance, plunge 86 percent.

The loss is the biggest ever for a Japanese manufacturing company, according to Kyodo News agency and local newspapers.

The company's restructuring plan includes closing over half of its TV panel production lines and reducing its number of workers through voluntary retirement offers and transfers to outside companies. It has said it will combine its myriad of businesses into three main divisions: consumer, electronic components, and a "solutions" division that targets large projects in areas such as health care and manufacturing.

As with many Japanese companies, Panasonic's fiscal year runs from April to March.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Jay Alabaster

IDG News Service
Show Comments



Sansai 6-Outlet Power Board + 4-Port USB Charging Station

Learn more >



Back To Business Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles


PCW Evaluation Team

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?