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Tokyo - Japan's struggling Sanyo Electric is set to downgrade its earnings forecasts for the year to March, expecting a strong yen to wipe out its net profit almost entirely, a report said on Sunday.
Sanyo, which is to become a subsidiary of Panasonic later this year, will lower its forecast for group net profit from ¥35bn to almost zero for the full year to March, the Asahi Shimbun said.
Its forecast of operating profit would be revised down by 40% to ¥30bn from ¥50bn, with sales expected to fall below ¥2 trillion for the first time in nine years, it said.
The company's earnings from microchip and other electronics parts are rapidly worsening due to the yen's appreciation, the Asahi said.
The company will announce the revised forecasts this week, the newspaper said without citing its sources.
The yen was trading at around ¥91 to the dollar at the end of last week, compared with above ¥99 at the end of March last year.
No comment on the report was available from Sanyo on Sunday.
- AFP
