“Park East Capital” reports that the Japanese maker Panasonic Corp this week posted a record loss.
Panasonic has been hit hard during the last year and has seen its earnings dramatically slump this year. “Park East Capital” analyst says that this is mainly due to the fall in demand for consumer electronics, especially large flat screen TVs and digital cameras. The big-ticket items that are not a necessity are where the consumer has cut back the most.
“Park East Capital” analyst also says that it’s a bit of a double whammy for Panasonic as the strength of the Yen has made the company less competitive.
Add to that the new bread of Chinese manufacturers, who have improved their standards. The market place is now more competitive that before.
Panasonic still believes over the year it will be profitable. Over the next few months “Park East Capital” expects Panasonic to restructure the company for the next year ahead. This is where Panasonic has a good track record, previously in downturns that have managed the company very well.
They have the experience and due to other downturns the versatility is there to rapidly restructure. Expect to see Panasonic get back to good profitability once it restructures.
