Panasonic Reports A Big Loss

According to recent reports, it was revealed that Panasonic Corporation has predicted an annual loss of approximately 420 billion yen. Reports state that this is the biggest loss the electronic giant has ever forecasted since its operation began. Furthermore, the loss was a result of insanely high restructuring costs and an increase in the yen. The Japanese electronic giant increased the pace of restructuring as it planned to reduce the losses which it faced due to the poor performance of its TV division. On the other hand, a couple of months ago, the company revealed that it aims to slash around 17,000 of its workforce by the mid of 2013.Meanwhile, on Monday, the Japanese electronic giant said that it will cut a total of 350,000 jobs by the end of 2014. Furthermore, Panasonic said that it will discontinue the production of liquid crystal panel at its Mobara plant which is located in Tokyo. Additionally, the company is also thinking to continue the shipping of plasma panel manufacturing equipment to shanghai as it plans to make a profit in its Television by next year.

CEO of Investrust, Mr. Hiroyuki Fukunaga, said that due to an increase in the cost or restructuring, the company forecasts a net loss of 420 billion Yen. Adding further he said that it has decreased the exchange rate to 76 yen. Due to a lower exchange rate the company can get some free space incase if the dollar slides from the current level. On the other hand, reports state that the steady increase in yen is making it hard for the Japanese electronic giant to contend with companies like Samsung. Furthermore, Panasonic’s quarterly loss is reported to be its second largest loss ever.

Panasonic’s shares ended 2.1 percent lesser before results. Furthermore, reports state that the shares of the company have declined around 31 percent in the current year. Additionally, a 13 percent reduction in shares was also reported in the broader market. Chief Financial Officer at Panasonic, Mr. Makoto Unenoyma said that the company has to carefully handle its semi conductor and television business.

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