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TOKYO - Sanyo Electric shares have plunged to a 31-year-low on reports it will post a surprise loss this year on sluggish mobile phone sales and restructuring costs.
Shares in Sanyo, which earlier this year issued 300 billion yen ($3.90 billion) in preferred shares to Goldman Sachs at a deep discount to ensure survival, were trading at Y179, down 12.7 per cent.
"Sanyo is simply not functioning as a corporate entity," said Mitsushige Akino, chief fund manager at Ichiyoshi Investment Management.
"If Sanyo were to split off its profitable operations, like its battery business, that would be positive, but they'll probably just try to weather the storm with some more job cuts."
A company source said the net loss at the consumer electronics-maker could be as big as Y50 billion for the year to March 2007.
The Osaka-based company had forecast in May a Y20 billion profit.
Sanyo spokesman Hiroshi Tsuchiya said its results for the six months to September would be reported on Friday when the full-year outlook would be reviewed.
- REUTERS
