• The Associated Press


Scandal-plagued Sanyo said Monday it trimmed its losses for the fiscal year and forecast a return to profit for the current year.

Sanyo Electric Co. has undergone a reshuffle at its top management after acknowledging recently it had falsified its fiscal 2003 earnings, in which it reported a profit but could have been in the red.

With a loss of 45.5 billion yen for the year through March, Sanyo has now posted losses for three years running. But that was better than the 205.7 billion yen loss the previous year.

The accounting scandal surfaced as the electronics maker of digital cameras and batteries was undergoing a turnaround, reducing jobs and shuttering unprofitable businesses under a revival plan.

The annual profit figure was slightly better than the 50 billion yen loss the company had expected.

Sales plunged 7.6 percent to 2.2 trillion yen from 2.4 trillion yen the previous fiscal year, Sanyo said in a statement.

The company did not release quarterly numbers.

Following the embarrassing scandal, Sanyo appointed a new president, Seiichiro Sano, who took office last month. It is the first time someone outside the founding Iue family has led Sanyo, either as president or as chairman, since it opened for business in 1947.

Sano replaced Toshimasa Iue, who stepped down in March, apologizing for having failed to achieve reforms and change.

Sanyo got a much-needed capital boost a year ago from a group of investors led by Goldman Sachs Group Inc., which became its top shareholder and took over the board, putting new management in place, including Kentaro Yamagishi from Goldman Sachs.

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