Sanyo Electric Co. said Friday it will make drastic cutbacks in its semiconductor, home appliance and audio visual businesses, aiming to become a leaner organization in fewer fields.

The company's new plan also includes raising up to 300 billion yen from Sumitomo Mitsui Banking Corp., Daiwa Securities SMBC Co. and Goldman Sachs Group Inc. as well as its existing shareholders through the issuing of new shares.

In underlining the Osaka-based company's determination to jettison unprofitable operations, Sanyo President Toshimasa Iue said the firm would not hesitate to exit the domestic TV business if it fails to turn profits.

He also said the consumer-electronics maker will slash a number of semiconductor-production operations to focus on competitive ones, and may spin off the chip business eventually.

The new cutbacks, which follow up on a sweeping restructuring plan unveiled in July, came as the company reported a larger-than-expected loss in the first fiscal half compared with its forecast announced in September.

The firm said it now projects a 233 billion yen net loss for the full year through March, after it decided to book larger restructuring charges. It posted a 171.54 billion yen net loss in the previous fiscal year, when a large-scale earthquake damaged its chip plant in Niigata Prefecture.

To take responsibility for the large loss, President Iue and CEO Tomoyo Nonaka will take a 50 percent cut in executive pay until March 2007, and other board members will take 40 percent pay cuts. Rank-and-file employees will see their first salary reduction, of 5 percent, in January, the company said.

Chairman Satoshi Iue, who had been company president for 20 years until June, will retain his post but will give up his executive pay, Nonaka said, denying earlier media reports that Iue would resign.

In the new plan, Sanyo vowed to return to the black in the next fiscal year, with a net profit of 29.5 billion yen. Sanyo said it will focus on a few competitive areas, including batteries, cell phone handsets and digital cameras.

It will also trim operations deemed unprofitable, including overhauling its home-appliances business. President Iue said noncore businesses will be scaled down through alliances with rivals.

The new management, installed in June and tasked with reviving the company, has been stressing a clean break with the past to transform the firm into a more competitive one. But CEO Nonaka has faced an uphill battle since she took charge.