Sanyo has reported a massive £765m net loss for the first half of the year as it continues to try to revamp its product line.
The loss, for the six months to the end of September, was 142.5bn yen, against a net profit of 3.4bn yen for the same period last year.
Originally the company had been predicting a full-year loss of around 140bn yen, but it has now increased this estimated loss to 233bn yen.
Sanyo’s domestic products business is making massive losses and its digital products portfolio is being hit by falling prices, a problem hitting all major Japanese conglomerates hard.
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The bad results follow the April appointment of Tomoyo Nonaka as Sanyo chief executive officer, one of the few female CEOs to head a major Japanese company.
As part of her plan to stem Sanyo’s losses, Nonaka plans to axe 15% of the company’s workforce over three years.
Sanyo is now concentrating on its mobile phone, battery, and digital camera businesses to generate more sales. The digital camera business however is becoming more commoditised as a result of cheap products from China and Taiwan.