Published: 12:00 AM, 01 August 2016
Japanese electronics firms face hard time
Japanese electronics maker Panasonic announced on Friday a slump of 63.5 percent in its April-June group net profit, which once again shows that Japan's traditional electronics firms are facing a difficult time. Panasonic Corp. reported a group net profit of 21.74 billion yen (213 million U.S. dollars) for the three months ending in June, down from 59.56 billion yen (584 million US dollars) a year earlier.
Meanwhile, the company said its operating profit tumbled 12.6 percent to 66.93 billion yen (656 million U.S. dollars) in the first quarter of 2016 as sales dropped 5.9 percent to 1.75 trillion yen (17.15 billion U.S. dollars). The serious losses Panasonic experienced are not an isolated case. Early this month, Chinese electronics giant Lenovo acquired 44 percent of NEC Lenovo Japan Group's stocks, according to media reports. Nippon Electric Company (NEC), once the biggest PC supplier in Japan, declared a plan to build up a joint venture with Lenovo in 2011. However, the new group failed to rid NEC of the successive losses for years, and now 95 percent of its stocks have been in Lenovo's hand.
Another former Japanese electronics giant, Sharp Corp., revealed recently its group net loss of 27.5 billion yen (269.5 million U.S. dollars) in the first half of 2016, including an operating loss of 2.5 billion yen (24.5 million U.S. dollars).
Meanwhile, the company said its operating profit tumbled 12.6 percent to 66.93 billion yen (656 million U.S. dollars) in the first quarter of 2016 as sales dropped 5.9 percent to 1.75 trillion yen (17.15 billion U.S. dollars). The serious losses Panasonic experienced are not an isolated case. Early this month, Chinese electronics giant Lenovo acquired 44 percent of NEC Lenovo Japan Group's stocks, according to media reports. Nippon Electric Company (NEC), once the biggest PC supplier in Japan, declared a plan to build up a joint venture with Lenovo in 2011. However, the new group failed to rid NEC of the successive losses for years, and now 95 percent of its stocks have been in Lenovo's hand.
Another former Japanese electronics giant, Sharp Corp., revealed recently its group net loss of 27.5 billion yen (269.5 million U.S. dollars) in the first half of 2016, including an operating loss of 2.5 billion yen (24.5 million U.S. dollars).
