Sales fell 8.6 percent to 569 billion yen ($5.08 billion) in the first quarter, from 662.4 billion yen ($5.19 billion), thanks to poor showings for consumer electronics and components such as rechargeable batteries and semiconductors. Falling prices and tougher competition drove sales of gadgets such mobile phones and digital cameras down 12.2 percent in the quarter, while sales of solar batteries and computer chips dropped 7.5 percent, the company said. Domestic sales, which accounted for 47 percent of overall revenue in the first quarter, fell 15 percent, while overseas sales dropped 1.8 percent.
Sanyo management team
Sanyo announced a turnaround plan on July 5 calling for cutting 14,000 jobs, or 15 percent of its global workforce, slashing domestic factory space by about a fifth, discontinuing some lines, and cutting debt by about half. The company also appointed a new management team in April to revive the company after it posted a net loss of 171.5 billion yen ($1.53 billion) in the year just ended. The company had earlier forecast a profit of 14 billion yen for the year but scrapped the outlook after a 6.8-magnitude earthquake struck its semiconductor plant in northern Japan last October. Sanyo kept its forecast unchanged for the current fiscal year to March 2006. It is predicting a net loss of 92 billion yen on sales of 2.49 trillion yen, nearly flat from last year. (AP)
Sanyo Electric Co., Ltd. Company Profile
"Sanyo" means "three oceans" in Japanese, and when it comes to consumer and commercial electronics, Sanyo covers the waterfront. The electronics powerhouse has more than 170 subsidiaries worldwide. From electric bicycles to semiconductors, Sanyo manufactures products both innovative and prosaic. Its companies make a variety of electrical devices and appliances, including industrial and commercial equipment (refrigerated supermarket cases), audio and video equipment (DVD players, TVs, digital cameras), semiconductors, communications equipment (cellular phones, computers), batteries, and home appliances (microwave ovens, air conditioners).