Panasonic, like rivals Sony and Sharp which report earnings this week, has suffered in its television business amid falling prices and stiff competition from overseas rivals.
As Panasonic (IW 1000/31) undergoes a major overhaul of its troubled business, the company announced on Wednesday it would book a mammoth $9.6 billion net loss in the fiscal year to March .
While the firm said it would achieve an operating profit, restructuring costs and writedowns would see it post the whopping 765 billion yen shortfall. This would be close to the record 772.2 billion yen net loss last fiscal year, one of the worst-ever losses for a non-financial Japanese firm.
Panasonic, which had earlier said it expected to post a net profit of 50 billion yen in the fiscal year to March 2013, also cut its annual sales forecast to 7.3 trillion yen from 8.1 trillion yen.
Panasonic said its sales in the first half of the fiscal year tumbled amid slumping demand for its flat-panel TVs, digital cameras and mobile phones, as it booked a 685 billion yen loss for the six months to September.
Restructuring expenses alone in the current fiscal year would be about 440 billion yen, more than 10 times the firm's original forecast.
"Despite signs of a moderate recovery, the global economy continues to contract with much deep remaining uncertainty due to the European financial crisis and slowdown of the Asian economic expansion including China," Panasonic said in a statement.
"The electronics industry continued to be difficult with a downturn in digital products, especially flat-panel TVs, and a sales decline in electronic components," it added.
