-Sony Corp. and Panasonic Corp. (6752), Japans biggest consumer-electronics makers, fell to the lowest level in three decades after forecasting earnings that missed estimates because of a failure to end losses from TVs.
-Sony, the worlds No. 3 TV maker, fell to the lowest level since August 1980. The maker of Walkman music players and Bravia TVs closed today with a market value of $17.5 billion, compared with more than $100 billion in 2000. Panasonic, the worlds largest maker of plasma TVs, fell to the lowest since January 1978, according to data compiled by Bloomberg.
-The declines come after the companies said losses from their TV businesses will continue, and investors remained skeptical about predictions for returning to profit this year. Without hit products like the compact-disc player of the 1980s, Sony (6758) and Panasonic have lost ground to Samsung Electronics Co. (005930) and LG Electronics Inc. in TVs and to Apple Inc. (AAPL)s iPod.
-Panasonic, eliminating about 17,000 jobs after posting a record 772 billion-yen ($9.7 billion) loss last year, said today it expects net income will probably be 50 billion yen in the 12 months ending March 31. The projection missed the 106 billion- yen average of 18 analyst estimates compiled by Bloomberg.
-Sony said yesterday that TV sales will decline 11 percent to 17.5 million units and will lead to an 80 billion-yen loss in the year that began last month.
-By comparison, Suwon, South Korea-based Samsung, the worlds biggest maker of phones, chips and TVs, has gained 23 percent this year and is valued at $167 billion. Cupertino, California-based Apple, with a market capitalization of $533 billion, has jumped 41 percent in New York trading.
-The Japanese companies need to develop unique and No. 1 products to propel growth in the future, said Yuuki Sakurai, chief executive officer at Tokyo-based Fukoku Capital Management Inc., which manages $7.3 billion of assets. At this point, I dont see any company in Japan that can do that.