OSAKA (Kyodo) Sanyo Electric Co. is expected to cut its fiscal 2008 group operating profit estimate by 40 percent and have almost no net profit due to the yen's rapid rise as well as sluggish sales of semiconductor and electronic parts, according to sources.
In earnings estimates to be announced in mid-January, Sanyo is likely to revise downward its operating profit forecast for the year to March 31 to ¥30 billion from the initially projected ¥50 billion, and its net profit is expected to fall to almost zero, compared with an earlier projection of ¥35 billion, the sources said.
Group sales are likely to fall below ¥2 trillion for the first time in nine years, against an initially anticipated ¥2.02 trillion, they said.
Net profit will likely fall to almost zero due mainly to impairment losses on facilities to make semiconductors, the sources said.