Panasonic announces record loss

The latest Japanese firm to announce a massive earnings shortfall as shares head to a 30-year low.
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Japanese electronics giant Panasonic has unveiled a staggering full-year loss of nearly US$10 billion dollars, continuing a series of hefty losses of Japanese companies struggling with natural disasters and increased competition.

Panasonic president Fumio Ohtsubo described the firm's hefty investment in plasma and LCD television production as "excessive", something the company would come to regret as the market dived after 2006.

Yet the company still sees reforming the television business as a key to recovery. Indeed the executive managing the television business unit, Kazuhiro Tsuga, will take over from Ohtsubo next month.

Rocked by the global economic downturn, high Japanese currency and sagging domestic demand, sales dropped by over 20 per cent. Panasonic is now set to follow Sony's recent axing of 10,000 jobs with 17,000 job losses as the company struggles to reduce costs.

Panasonic is the AV equipment sponsor for the London 2012 Olympics.

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