Panasonic forecasts 59% fall in annual profit

Panasonic forecast full-year profit will tumble 59 per cent this fiscal year after Japan's March 11 earthquake disrupted factories and suppliers. Net income will probably drop to 30 billion yen (Dh1.37 billion) in the year to March 2012, the Osaka-based company said in a statement yesterday. That compares with the 35.4 billion yen average of eight analyst estimates compiled by Bloomberg in the past four weeks. Japan's biggest home appliance maker is facing shortages of components even after resuming the seven factories that had been halted after the earthquake, president Fumio Ohtsubo said last month. Reductions in power supply have added to concerns about the company's operations, he said. Supply-chain issues "will likely affect Panasonic's output until about September," Kazuharu Miura, a senior analyst at SMBC Nikko Securities, said before the announcement. Sales of low-emission appliances and solar panels may help the company this year, while television operations will likely continue losing money because of lower prices, he said. Sales will probably rise 0.1 per cent to 8.7 trillion yen during the 12 months started on April 1, the company said. Operating income, or sales minus the cost of goods sold and administrative expenses, may slide 12 per cent to 270 billion yen. Analysts estimated 8.45 trillion yen and 253 billion yen respectively. From / Gulf News