Panasonic forecasts 11% drop in full-year profit

Panasonic Corp on Monday forecast a 270 billion yen (USD 3.4 billion) operating profit for the year to March 2012, down 11% on the previous year as the effects of the devastating earthquake continued to weigh on the company's supply chain.

Market consensus was for a profit of 262.6 billion yen, based on the average of 21 estimates by analysts polled by Thomson Reuters I/B/E/S.

The maker of Viera televisions and Lumix cameras posted a 305 billion yen profit last year, and said in April it would have raised that to 310 billion yen in the current year, if it were not for the effects of the March disaster.

Panasonic also said in April it planned to shed another 17,000 jobs and might close up to 70 factories around the world over the next two years, as it seeks to pare costs and rid itself of overlapping businesses following its buy-out of Sanyo Electric and Panasonic Electric Works.

Company President Fumio Ohtsubo told reporters in May the effects of the quake were proving shallower, but longer-lasting than the firm had initially expected.

Like many of its rivals, Panasonic delayed its profit forecast due to lack of clarity about the effects of the quake.

(USD 1 = 80.055 Japanese Yen)