Digital Camera News
Sanyo Recovers in First Quarter
July 31, 2006 – Sanyo Electric Co., Ltd. announced that the electronics company is recovering economically, according to Thursday’s release of the first quarter fiscal results. With a total net loss of 205.7 billion yen ($1.8 billion USD) last fiscal year, this quarter, Sanyo fared better with comparatively slight losses. The company saw a financial rebound this April-June quarter with only a 2 percent net income loss of 9.668 billion yen ($84 million), compared to a 4.6 percent loss of 26.2 billion yen ($228 million) this time last year.
Sanyo attributed its rebound on the economic recovery of the Asian countries, which helped boost Sanyo’s capital investments and consumer demand, according to a press release last week. In spite of the rising prices of oil and raw materials, Sanyo is closing the gap on their losses.
Despite the good news, Sanyo cited a continued loss in net sales. "Increased competition and a decline in prices led to a decrease in digital camera sales," stated the release. First quarter net sales totaled 504.1 billion yen ($4.4 billion), showing more than an 11 percent drop from last year’s 568.9 billion yen ($4.9 billion).
Sanyo stands behind its forecasts for the 2006 fiscal year which were released last May. Sanyo predicts the company will see a net income of 20 billion yen ($174 million) this year. Last year, Sanyo reported a substantial loss of over 200 billion yen ($1.7 billion).
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