Wednesday, January 14, 2009

Sanyo Cuts Annual Profit Forecast on Weak Demand, Yen (Update1)

Jan. 15 (Bloomberg) -- Sanyo Electric Co., which is being acquired by Panasonic Corp., cut its annual profit forecasts, citing falling demand for semiconductors, electronic components and the stronger yen.

The company now expects to break even in the year ending March 31 compared with net income of 35 billion yen ($393 million) forecast on Nov. 5, the Osaka-based company said today.

Sanyo also cut its forecast of operating profit, or sales minus the cost of goods sold and administrative expenses, by 40 percent to 30 billion yen, and compared with 76.1 billion yen a year earlier.

Sanyo shares fell 3.9 percent to close at 148 yen on the Tokyo Stock Exchange. The company announced the changes to its forecasts after share markets in Japan closed.


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