Struggling home appliance maker Sanyo Electric Co. reported a record group net loss of 205.6 billion yen for the business year that ended in March, due to falling sales and losses incurred in corporate restructuring, the company said Thursday.

The result rewrites the previous record loss of 171.5 billion yen logged in the previous business year, it said.

Group sales slipped 3.5 percent from the 2004 business year to 2.4 trillion yen as the company has suffered from sluggish sales in sectors that include digital household appliances, amid intensifying price competition and diversifying consumer needs, the company said.

Sales drop as well as review of inventory assessment through ongoing restructuring led to an operating loss of 17.2 billion yen, the firm said.

While overseas sales were up 0.8 percent to 1.24 trillion yen, domestic sales plunged 7.7 percent to 1.16 trillion yen.

By sector, sales of consumer electrical appliances dropped 6.6 percent to 1.15 trillion yen due to sluggish sales of digital appliances such as digital cameras, TV sets and liquid-crystal projectors. Sales of air conditioners and washing machines also plunged.

The semiconductor division will be split to become a new corporation from July 1, the company said.

For the current business year, the company said it expects group sales to grow 0.1 percent to 2.4 trillion yen, operating profit to recover to 65 billion yen, and net profit to recover to 20 billion yen.

300 billion yen investment

Mitsubishi Electric Corp. aims to invest some 300 billion yen over the next three years in plants and equipment mainly for its industrial machinery operations, President Setsuhiro Shimomura said Thursday.

The capital investment will be aimed at bolstering the areas of activity where Mitsubishi already enjoys a competitive edge, Shimomura told reporters.

Some 120 billion yen will be allocated to its elevator and factory automation system and other divisions in fiscal 2006.

In a time of both misinformation and too much information, quality journalism is more crucial than ever.
By subscribing, you can help us get the story right.