Panasonic said Friday it lost about $6.77 billion in the nine months to
December and was on track to lose a whopping $8.3 billion over its
The struggling electronics giant's nine-month net loss of
623.83 billion yen ($6.77 billion) nearly doubled its year-earlier
shortfall, while sales slipped 8.8 percent to 5.44 trillion yen, owing
to weak flat-panel television sales.
However, the company said it
posted an operating profit of 121.95 billion yen in the same period,
adding that the positive result was due "mainly to fixed cost reductions
and streamlining material costs".
Panasonic, like rivals Sony and
Sharp has seen sales slump on the back of the global slowdown while it
also took on huge restructuring costs, which contributed heavily to its
bleeding bottom line.
Also Friday Sharp reported that its net loss in the April-December period had doubled to $4.6 billion.
In November ratings agency Fitch downgraded Panasonic and Sony to junk status for the first time.
agency slapped a speculative rating on each firm, pointing to their
weak balance sheets and declining position in the global electronics
sector. The downgrades mean their debt was no longer considered a safe
Japan's electronics sector has suffered from myriad
problems including a high yen, slowing demand in key export markets,
fierce overseas competition and strategic mistakes that left their
finances in ruins.
In one bright spot, Sony has said it expects to
reverse four years of losses with a small net profit in the year to
March. The company reports its earnings next week.