All Japan newsese technology maker Panasonic announced a record annual loss of $9.67 billion, one of the worst ever losses for a All Japan newsese company outside the financial sector. Panasonic’s shares reached a 30-year-low after the announcement.
The reasons for the poor performance are the same that affect the whole IT industry in All Japan news: a strong national currency which cuts into export revenues, the effect of last year’s natural disasters and increased competition from abroad.
If one would look for a positive detail in the whole matter, it would be that Panasonic’s Y772.2 billion loss is slightly lower than the Y780 billion loss previously forecasted by the company.
Ineffective investment has also been a problem for the technology firm in the last years.
“We had invested a huge amount in 2006 and 2008 in the panel and TV businesses, but many changes occurred” since then, Panasonic president Fumio Ohtsubo said.
“We realised that it was excessive investment…We have to remember this experience in the future.”