For the Japanese market, while sales of washing machines, including the highly popular AQUA washer-dryer unit, and commercial kitchen equipment were favorable, air conditioners and components such as semiconductors and electronic components were bearish, leading to an overall decrease of JPY71.8 billion or 9.7% compared to the previous year, resulting in a total of JPY670.8 billion . As for overseas markets, although there were favorable sales of commercial-use showcases in China and photovoltaic systems in Europe, due to the severe market situation for almost all categories caused by the downturn in the global economy, total sales ended at JPY1099.9 billion, decreasing 13.8% or the equivalent of JPY175.4 billion compared to the previous year.
As for operating profit, the fiscal year 2008 results showed lower revenue, ending the fiscal year with a total of JPY8.3 billion, a decrease of 89.1% or JPY67.9 billion compared to the previous year. Despite concentrated cost reduction efforts, due to the sharp appreciation, escalation of costs for raw materials in the first half and adding the overall decrease in sales from the stagnant economy, the results ended much lower than the previous year.
Profit before tax for continuing operations decreased JPY171.0 billion from the previous year and ended with a deficit of JPY113.7 billion, primarily from posting restructuring costs of total around JPY85.0 billion for items such as impairment losses on fixed assets for the semiconductor business. The result was a net loss for the continuing operations of JPY122.2 billion. The net loss for fiscal year 2008 ended at JPY93.2 billion, decreasing JPY121.9 billion compared to the previous year total which included profit from the sale of operations such as the mobile phone business.
Seiichiro Sano, executive director and president of SANYO, said, “SANYO’s business really felt the effects of the global economic downturn, especially in the 2nd half of fiscal year 2008, causing the results for this year to be severe.” He added, “While we expect the business operating environment to continue to be severe, we will continue to focus on our strengths such as the rechargeable and solar battery businesses with further concentrated investments despite the current economic situation, as well as enhancing management practices to be able to weather the storm.”
