Tokyo, October 29, 2009 – SANYO Electric Co., Ltd. (SANYO) announces its consolidated financial results for the second quarter of fiscal year ending March 2010 (FY2010) (April 1, 2009 to September 30, 2009).

　The second quarter of FY2010 ended with consolidated net sales of 784 billion yen, a decrease of 22.1% over the same period last year.
For the consumer business segment, sales decreased 18.4% over the same period last year to 305.7 billion yen, mainly due to sluggish sales of digital cameras and air conditioners overseas. For the commercial business segment, the sales decreased 18.5% over the same period last year to 105 billion yen, attributed mainly to the decreased sales of commercial air conditioning units. The component business segment, which includes such products as rechargeable batteries, photovoltaic systems, semiconductors and electronic components, experienced a drastic sales decrease of 25.2% over the same period last year to 361.9 billion yen due to the sluggish sales of photovoltaic systems and rechargeable batteries. Also, improvement in semiconductors and electronic components had the impact on them.
　Domestic sales decreased 12.3% over the same period last year to 312.7 billion yen, and the overseas sales also showed a substantial decrease of 27.5% over the same period last year to 471.3 billion yen.

　Operating profit decreased by 20.6 billion yen to 3.3 billion yen over the same period last year. While there was a reduction in sales, a positive balance was achieved thanks to efforts to reduce costs such as activities to reduce raw materials costs as well as a result of the structural transformation over the past year. Sales recovery mainly due to component business segment had influence on it. Losses before income taxes and attributable to non-controlling interests from continuing operations was down by 39.3 billion yen, ending at 30.6 billion yen, primarily because of expenses related to washer/dryer recalls and the ‘Special Career Support Plan’. Finally, the net loss attributable to SANYO totaled 37.4 billion yen, a deteriorated of 70 billion yen from the same period last year.

Seiichiro　Sano, President of SANYO Electric, commented, “The market reached the bottom in the 4th quarter mainly for the components business; the first half ended with better financial results in operating income, leading us to get 3.3 billion yen of operating income.” He added, “While the forecast for the 2nd half is still uncertain due to continuing economic circumstances, we will focus on accomplishing the forecasted 25 billion yen of operating income. We will continue to look forward as we attempt to improve profitability.”
The forecasts for FY 2010 ending March 2010 are as below.

　Net loss attributable to SANYO
　　　　　　　　　　　　　　　　　　　Year ending Mar. 31, 2010　 (30,000) Million yen

All statements in this report, other than past factual matters, are future results projected in accordance with SANYO’s present plans, outlooks and strategies, based on management judgments in light of information currently available. Therefore, SANYO cannot guarantee the accuracy and reliability of this information, and requests that you should not rely on this information alone. There are various factors influencing business forecasts such as business risks and uncertainties. The principal factors that may cause changes in the forecasts includes: 1) large changes in economic conditions and capital markets, as well as consumption changes in businesses SANYO engages in, 2) the effects on SANYO’s international business activities of fluctuation in exchange rates between the yen and the U.S dollar, as well as the yen and other currencies, 3) various trade restrictions in the markets of individual countries, and 4) SANYO’s ability to provide new technologies, new products and new services amid rapid technological innovation, market competition and price competition. However, it should be noted that factors affecting SANYO’s performance are not limited to those mentioned above; there are other factors that pose latent risks and uncertainties.


Further details regarding the results can be found in the following PDF link: