Sanyo swings back to profit in 1st half (AP)
By CARL FREIRE, Associated Press Writer 8 minutes ago
TOKYO - Scandal-plagued Sanyo said Tuesday it swung back to a profit for the six months through September as strong digital camera and rechargeable battery sales offset a decline in mobile phones and home appliances.
Sanyo Electric Co. posted 15.98 billion yen ($149 million) in net profit during the six months ended September 30. It had posted a 3.62 billion yen loss in the same period a year ago.
Sales dipped 0.4 percent to 1.091 trillion ($10.17 billion) from 1.095 trillion yen.
Along with earnings, Sanyo also announced a new three-year business plan outlining steps aimed at transforming and revitalizing the company. The plan calls for massive outlays on Sanyo's battery business and cutbacks in interest-bearing debt. Sanyo's goal is for all of its businesses to be operating in the black by the plan's completion in 2010, the company said.
Osaka-based Sanyo kept unchanged its forecasts for a return to profit for the full fiscal year ending March 2008 at 20 billion yen ($186 million) profit on 2.23 trillion yen ($20.78 billion) sales.
Sanyo did not provide quarterly results.
Sanyo has undergone a reshuffle at its top management after acknowledging earlier this year that it had falsified its fiscal 2003 earnings, in which it had reported a profit when it was in the red.
The accounting scandal surfaced as the electronics maker was executing a turnaround, reducing jobs and shutting unprofitable businesses under its previous three-year plan.
In May, the Japanese unit of General Electric Co. took over Sanyo Electric Credit Co. in a deal valued at 126.34 billion yen ($1.18 billion).
Sanyo is among the Japanese electronics makers that have had problems turning itself around after a battering in recent years by competition from cheaper Asian rivals. Its performance was also hurt by a 2004 earthquake near its chip-making plant.
Tokyo investors were cheered by the results. Sanyo's stock finished up 1.66 percent to 549 yen ($5.12) on the Tokyo Stock Exchange.