Panasonic Corporation, who legally changed their name from Matsushita Electric Industrial Company on October 1st, has "downwardly revised" their current year profit forecast by a whopping 90%. In their press release they cited the current financial crisis that originated in the United States and which has now spread across the world. They further stated that the business sentiment in Japan and overseas has significantly worsened as a result of this crisis. Additional negative factors that contributed to the 90% downgrade were a write-down of investment securities due to the drop in stock prices and other business restructuring expenses. Previously Panasonic had been forecasting an increase in net profits relative to last year due to healthy sales of flat-panel TVs, DVD recorders and home appliances. They have also been negotiating the purchase of rival Japanese manufacturer Sanyo Electric Company.
Sony Corporation has also downgraded their profit forecasts by a less dramatic but not insignificant 38% (to 150 billion yen).
By the numbers:
Original forecast for the fiscal year ending March 31, 2009
Sales: 9200 billion yen (US$96.47 billion)
Net profit: 310 billion yen (US$3.25 billion)
Revised forecast for the fiscal year ending March 31, 2009
Sales: 8500 billion yen (US$89.12 billion)
Net profit: 30 billion yen (US$315 million)
I suppose we will see a lot more of these profit forecast revisions but 90% is pretty intense and just had to be mentioned.
Panasonic is hardly fading away, LOL.
They're one of the biggest players, and have been for a while.
Really? If the forecasts are on the torrents I'll get them too.
Well, you can "download" their revised forecasts from here including some nifty slide presentations. However, I do get your point.
Yeah, I was just joking, hehe. I assume the spellchecker made the wrong substitution or something.
If you notice the downfall is mainly profit, and not turnover, so they are having to essentially drop pricing on deals and negotatiations.
The reason for the name change was nothing to do with publicity, infact Panasonic doesn't go for publicity very much at all, it's not in their "mind sets". it was just easier to prononce and since this was the globally recognised name it made sense to fit in line
The amount of products they produce is incredable, and the portfolio most of us see is just a snip at everything they do!
Everything they do is great value for money, but retains superb quality - that's their ambition and they do it well, never going to be the BEST or the CHEAPEST, but right in the middle satisfying customers needs.
Interestingly enough Panasonic manufacuter so many brands for different regions it's unreal, National, Technics, Used to do JVC, and much much more!
Interesting though!
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