Electronics makers head for a difficult restart

2 years ago by in Japan Archives, Technology

Big Japanese tech companies are expected to report lower quarterly earnings after the March natural disasters, but analysts are weighing their chances for a steady comeback later in the year.

Most electronics makers have budgeted earnings for the fiscal year that ends March 2012, showing a strong recovery trend after the quake and tsunami that disrupted their supply chains this spring.

For the moment, many of the companies are still licking their wounds. Panasonic and Sharp are expected to report losses for the quarter, according to Reuters estimates. Nintendo is looking at a small operating profit of Y10 billion ($127 million), while Sony also expects profits to drop.

The hopes for a better year are still offset by doubtful economic prospects. The yen’s strength against the dollar and the euro, as well as government’s debt, are big question marks for the months to come.

Most Japanese consumer electronics companies have seen their market value drop in the last three months. Nintendo is down about 40 percent since March 10, the day before the natural disasters, while Sony lost almost 30 percent.

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