Panasonic shares fall 19% after firm forecasts net loss

Increased restructuring costs worry investors
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Shares fell 19 per cent to 414 yen after Panasonic forecasted a net loss of 765bn yen (£5.9bn).

This news comes two days after reports that the Japanese electronics maker is to pull out of the European smartphone market. Panasonic said that costs relating to restructuring its business were expected to be 11 times great than the company previously thought.

It seems that decreasing its smartphone business and increasing its restructuring costs, coupled with a fall in demand for TVs, has resulted in investors worrying about Panasonic’s long-term future.

The Tokyo Stock Exchange halted trade in Panasonic stock when its price fell to 414 yen - this is the lowest it has been since 1975.

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