Panasonic cut its annual net profit forecast by 90 per cent, hit by a slowing economy and a firmer yen, missing market expectations and joining rivals such as Sony Corp in slashing its outlook.
Panasonic, the world's number one plasma TV maker, expects its net profit to total 30 billion yen ($315.1 million) in the year ending in March 2009, down from its previous forecast of 310 billion yen and from a 281.88 billion yen profit a year earlier.
That compares with a consensus of a 256.1 billion yen profit in a poll of 19 analysts by Reuters Estimates.
Citing reasons for the sharp downward revision, Panasonic also said in a statement that it is likely to incur appraisal losses in its shareholdings and costs for restructuring measures, without specifying.
The company lowered its operating profit forecast by 39 percent to 340 billion yen for the year to March and cut its sales outlook by 7.6 per cent to 8.5 trillion yen.
The revision was expected since a source familiar with the matter said earlier today the maker of Viera flat TVs and Lumix digital cameras was likely to cut its annual operating profit forecast by at least 30 percent.
Ahead of the announcement, shares of Panasonic closed down 4.7 per cent at 1,284 yen, underperforming a 2 per cent rise in the Nikkei stock market average.
Reuters