Japan-based consumer electronics maker Sanyo Electric Co. reported a first-quarter net loss of 26.2 billion yen (approx. U.S. $234 million) compared to a profit of 2.33 billion yen (approx. $20.8 million) in the same period last year. According to the company, the loss is attributed to declined sales of digital cameras and mobile phones.
Sanyo, which announced a revival push earlier this month calling for massive job cuts, is trying to dig out from an unexpected loss last year brought on by tumbling prices and damage from an earthquake.
Sales fell 8.6 percent to 569 billion yen (approx. $5.08 billion) in the first quarter, from 662.4 billion yen (approx. $5.19 billion) in the same quarter last year, thanks to poor showings for consumer electronics and components. Falling prices and tougher competition drove sales of gadgets such mobile phones and digital cameras down 12.2 percent in the quarter.
Sanyo announced a turnaround plan calling for cutting 14,000 jobs, or 15 percent of its global workforce, slashing factory space by about a fifth, discontinuing some lines, and cutting debt by about half. The company also appointed a new management team to revive the company after it posted a net loss of $1.53 billion in fiscal year 2004. (AP)
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