The Sanyo Electric Company widened its forecast for losses for the current year and said it would speed up cost cuts under a 3-year plan as sluggish sales of consumer electronics and components continue to chip away at earnings.
The company, based in Osaka, Japan, said it expected a net loss of 140 billion yen (approx. U.S. $1.24 billion) in the year ending March 31, 2006, worse than the 92 billion yen (approx. $812 million) loss it had previously forecast.
Sanyo also outlined long-awaited details of a plan for revival that called for selling the company's Tokyo office building and 68 sales offices throughout the country, along with other real estate. Sanyo will also sell or speed up the sale of four factories and achieve two-thirds of 14,000 planned job cuts by February. The company will also stop making VCR's and DVD players and recorders. Instead, it will focus on high-definition DVD technology.
The plan will save 170 billion yen (approx. $1.5 billion) over 3 years, the company said.
Sanyo announced the basic outlines of its turnaround plan in July, calling for slashing domestic factory space by about a fifth, discontinuing some lines and cutting debt by about half. The company is trying to dig out from an unexpected loss last year brought on by tumbling prices and damage from an earthquake. (New York Times, AP)
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