Panasonic's red ink grows, forecasts loss for year

AP News
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Posted: Oct 31, 2012 3:05 AM

TOKYO (AP) — Panasonic Corp.'s losses ballooned to 698 billion yen ($8.7 billion) for the fiscal second quarter compared to the previous year as its global sales plunged in flat-panel TVs, laptops and other gadgets.

Restructuring costs added to the Japanese electronics company's red ink, which proved far worse than the 105.8 billion yen loss racked up for the July-September period last year.

The Osaka-based maker of Viera TVs and Lumix digital cameras revised its full year forecast from an earlier projection of a small profit at 50 billion yen ($625 million) to a massive annual loss of 765 billion yen ($9.6 billion).

Behind the pessimism are lower sales expectations for the year through March 2013, and restructuring expenses that are larger than initially estimated, according to the company.