Power balance swings for Japanese electronics firms

8 years ago by in Business

Japanese electronics companies Sony and Panasonic reported on Thursday mixed earnings, with Sony cutting its full-year profit perspective and Panasonic reporting high earnings.

Sony booked a net loss of Y15.8 billion ($160 million) in April-September and cut its forecast for the whole year to March by 40 percent, saying the reason for the loss are the shrinking sales of digital cameras, personal computers and televisions.

However, that was still an improvement on the Y40.1 billion loss in the same period last year, according to the international press.

Panasonic, however, managed to crawl back from the abyss after several quarters of swinging losses due to dramatic corporate overhauls and a sharply weaker yen.

The company said it earned a Y169.3 billion ($1.72 billion) net profit in the quarter of April-September, reversing a net loss of Y685.2 billion a year earlier. It also said it was on track to earn a Y100 billion net profit in the year to March.

However, Koki Shiraishi, analyst at SMBC Nikko Securities in Tokyo, warned: “The impact of a weak yen will start disappearing in the second half of the fiscal year, which will cut their profit.”

He added: “There are still tough times ahead for Japanese electronics makers.”