Sanyo Reports 49-B.-Yen Operating Profit for FY ’06

Tokyo, May 28 (Jiji Press)–Sanyo Electric Co. on Monday reported a group operating profit of 49,568 million yen for fiscal 2006, returning to the black from the previous year’s operating loss of 17,154 million yen.

Although sales of digital cameras and mobile phone handsets were below expectations, the profitability of these products improved as a result of cost cutting efforts, Sanyo said.

But the company remained in the red on the net balance with a loss of 45,362 million yen in the year that ended in March, burdened by additional restructuring costs as well as spending to deal with accidents related to its rechargeable batteries, it said.

The net loss, however, shrank from the previous year’s 205,661 million yen.

Sales fell 7.6 pct to 2,215,434 million yen.

President Seiichiro Sano told a press conference that the company intends to make fiscal 2007 a year of revival, after successfully reporting an operating profit for the preceding year.

For fiscal 2007, Sanyo expects to fully turn itself around by logging a group net profit of 20 billion yen, though operating profit is projected to fall 9.2 pct to 45 billion yen due to rises in materials prices.

A change in tax rules on the reporting of depreciation costs will also be a negative factor, the company said.

Sales are expected to inch up 0.7 pct to 2.23 trillion yen.

Sanyo’s earnings figures are based on U.S. accounting standards. [EARNINGS]END

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