Panasonic posts $1.7 bln net loss

Japan's Panasonic said Monday it posted a net loss of 136.15 billion yen ($1.7 billion) between April and September as sales fell and predicted a full-year net loss, reversing an earlier profit forecast. The consumer electronics and home appliance giant expects a group net loss of 420 billion yen for the year to March 2012, compared to a profit of 30 billion yen projected earlier due to re-organisation and restructuring costs. The first-half loss stemmed from declining sales, restructuring costs and the impact of the March 11 earthquake and tsunami, the company said. The weaker outlook came "due primarily to the sluggish overseas sales affected by ever-intensified price competition for digital products and the appreciation of the yen," the company said in a statement. The loss came against a net profit of 74.72 billion yen logged in the same period a year earlier. Osaka-based Panasonic booked an operating profit of 47.60 billion yen, down 71.8 percent from the first half of fiscal 2010, and sales of 4.01 trillion yen, down 8.3 percent. The company also revised down its full-year operating profit to 130 billion yen from 270 billion yen, while it now expects sales of 8.3 trillion yen compared to 8.7 trillion yen. The revision also reflected an expected increase in restructuring costs mainly for it flat-panel TV and semiconductor businesses aimed at improving its financial situation, Panasonic said. The company is planning to sharply scale down its money-losing television business. Panasonic also unveiled a plan to transfer the headquarters of its procurement and logistics operations from Osaka to Singapore in a process starting in April 2012. "The move is part of the company’s globalization efforts in line with its midterm management plan," it said.