Panasonic forecasts $9.6bn loss amid falling sales

Demand for big plasma television screens has been falling while competition in the sector has increased

Panasonic has projected that it will make a loss in the current financial year because of falling sales and a jump in restructuring expenses.

It has forecast a net loss of 765bn yen ($9.6bn; £5.9bn). It had earlier projected a 50bn-yen profit.

The firm has been trying to restructure its business and said costs relating to that were expected to be almost 11 times more than previously estimated.

Its sales have been hit by slowing demand for TVs and a strong yen.

Panasonic also reported that it made a loss of 698bn yen in the July-to-September quarter.

The firm said that continued uncertainty in the global economy over the eurozone debt crisis and the slowdown in Asian economies, including China, had hurt demand for electronics goods.

At the same time, domestic consumption in Japan continues to remain subdued. The electronics giant said its sales in Japan fell 11% in the three months to the end of September, as compared with the same period last year, while overseas sales dropped by 14%.

Manufacturers of TVs have also seen their profits margins squeezed as slowing demand and rising competition have led to a fall in retail prices.