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 user 2005-03-29 at 10:38:00 am Views: 46
  • #11152
    cut outlook as digital boom slows

    TOKYO, March 05 – Japan’s major electronics
    makers, Sanyo Electric Co. Ltd. , on Wednesday cut their
    earnings outlook for this business year, underscoring a slide in prices and
    sales of digital goods

    In its
    third downward revision to full-year estimates, Sanyo, Japan’s third-largest
    consumer electronics maker, said it was likely to fall deeper in the red in the
    year ending on March 31 due to falling prices of digital cameras and mobile

    Sanyo, one of the world’s
    largest producers of digital cameras, has suffered from slower-than-expected
    growth in the digital camera market.

    Over 90 percent of Sanyo’s output is supplied to Olympus
    Corp  and other makers, many of which have scaled back production plans due to
    tough competition and sluggish demand.

    Sanyo now
    expects its net loss to come to 121 billion yen ($1.15 billion) for the year to
    March 31, compared to the previous estimate of a 71 billion yen loss.

    Osaka-based company had given the 71 billion yen figure — its worst-ever loss
    – in December after a major earthquake in the Niigata region north of Tokyo
    caused severe damage at one of its chip factories.

    also slashed its operating profit forecast to 43 billion yen from 60 billion
    yen. That figure had also been lowered in December, from 97 billion yen.

    on average had expected a net loss of 74.5 billion yen and operating profit of
    55 billion yen, according to forecasts compiled by Reuters Estimates.

    In light
    of the record net loss, Sanyo plans to cancel its year-end dividend, in sharp
    contrast to a growing pool of electronics conglomerates including Hitachi Ltd.
    and Toshiba Corp.  that plan higher dividend payouts.

    paid three yen per share for the first half, and had planned a three yen
    year-end payout.

    In an
    effort to boost the profitability of its semiconductor operations, Sanyo said it
    planned to integrate two of its chip subsidiaries including the quake-hit unit
    in Niigata and part of Sanyo’s own microchip operations into a new chip
    production unit.