Panasonic Suffers First Net Loss ($4B) in 7 Years

Panasonic, the world's largest plasma TV maker, lost $4 billion in its fiscal year ended March 31, the company's first loss in seven years.

Like most other Japanese electronics makers in the red (see Sony, Pioneer, Toshiba), Panasonic is blaming the recession for its losses. (Read full financial results.)

Panasonic had a record net loss of 444.3 billion yen for the January-March quarter, compared to a profit of 61.6 billion yen one year earlier. Last year, Panasonic posted a record net profit of 281.9 billion yen.

The Osaka-based company says business was down across all segments due to lower demand for flat-screen TVs, digital cameras, home appliances and semiconductors. Here are the sales numbers:

• Sales in its Digital AVC Networks unit fell 13 percent
• Home Appliance sales were down 9 percent
• Sales in its PEW and PanaHome business were down 9 percent

Overall, sales fell 14.4 percent to 7.77 trillion yen, while operating profit plunged 86 percent to 72.9 billion yen. Panasonic expects business to drop another 10 percent this year for an estimated $2 billion loss by March 2010. Panasonic offered the following statement:

"Panasonic expects that the economic environment in fiscal 2010 will be more severe than the past fiscal year, as the global recession and shrinking demand triggered by the financial crisis coincide with changes in market structure, including the expansion of emerging markets and a shift to lower-priced products."

Panasonic president Fumio Ohtsubo says the following cost-cutting measures are in place:

• Cutting 5 percent (15,000) of its 300,000-plus global workforce by the spring of 2010
• Shuttering of unprofitable business lines
• Shifting of resources to areas with growth potential
• Improving product quality

Panasonic will close 40 production facilities worldwide by March 2010 to help save 135 billion yen this year.

Related: Panasonic to Cut 15,000 Jobs, Post $4.2B Loss
Sony Reports First Annual Loss in 14 Years
Pioneer Posts Record $1.35B Net Loss for Fiscal 2008
Toshiba Suffers Record $3.5B Net Loss for Fiscal Year