Sanyo Reports $59.9 Million Net Loss

Struggling Japanese electronics maker Sanyo reported a 7.3 billion yen group net loss for the most recent quarter on Tuesday, as a decline in domestic sales outpaced strong performance overseas.

The Osaka-based company said profits fell 7.3 billion yen ($59.9 million;46.4 million euros) for the October-December quarter from a 6.2 billion yen profit for the same period a year before.

Sales fell 3.1% to 589 billion yen ($4.83 billion; 3.74 billion euros), versus the 607 billion yen posted the same three months the previous year, Sanyo said. Domestic sales fell 11.4% in the quarter, while overseas sales rose 4%.

By business segment, increased competition in digital cameras offset higher sales of mobile phones and advanced washing machines, leading to a 9.2% drop in consumer segment sales, Sanyo said.

Meanwhile, sales in its commercial segment rose by 10.7% on solid revenue from air conditioners and biomedical systems, especially in Europe, it said.

For the first nine months of the fiscal year through December, Sanyo said the group posted a net loss of 10.9 billion yen ($89.5 million; 69.3 million euros) on sales of 1.684 trillion yen ($13.83 billion; 10.7 billion euros).

In the same nine-month period a year ago, the company had a 136.3 billion yen net loss on sales of 1.787 trillion yen.

Sanyo left unchanged its forecast for a loss of 50 billion yen ($411 million; 318.1 million euros) for the fiscal year ending March 2007.

Sanyo reported its earnings after the close of trade on the Tokyo Stock Exchange, where its share price finished unchanged at 191 yen ($1.57; 1.22 euros).