TOKYO — Scandal-plagued Sanyo said Tuesday it swung back to a profit for the six months through September as strong sales of digital cameras and rechargeable batteries offset a decline in mobile phones and home appliances.
Sanyo Electric Co. posted 15.98-billion yen, or $149-million (U.S.), in profit during the six months ended September 30. It had posted a 3.62-billion-yen loss in the same period a year ago.
Sales dipped 0.4 per cent to 1.091-trillion yen ($10.17-billion) from 1.095-trillion yen.
Along with earnings, Sanyo also announced a new three-year business plan outlining steps aimed at transforming and revitalizing the company. The plan calls for massive outlays on Sanyo's battery business and cutbacks in interest-bearing debt.
Sanyo's goal is for all of its businesses to be operating in the black by the plan's completion in 2010, the company said.
Osaka-based Sanyo kept unchanged its forecasts for a return to profit fo! r the full fiscal year ending March 2008 at 20-billion yen ($186-million) profit on 2.23-trillion yen ($20.78-billion) sales.
Sanyo did not provide quarterly results.
Sanyo has undergone a reshuffle at its top management after acknowledging earlier this year that it had falsified its fiscal 2003 earnings, in which it had reported a profit when it was in the red.
The accounting scandal surfaced as the electronics maker was executing a turnaround, reducing jobs and shutting unprofitable businesses under its previous three-year plan.
In May, the Japanese unit of General Electric Co. took over Sanyo Electric Credit Co. in a deal valued at 126.34-billion yen ($1.18-billion).
Sanyo is among the Japanese electronics makers that have had problems turning itself around after a battering in recent years by competition from cheaper Asian rivals. Its performance was also hurt by a 2004 earthquake near its chip-making plant.
Tokyo investor! s were cheered by the results. Sanyo's stock finished up 1.66 ! per cent to 549 yen ($5.12) on the Tokyo Stock Exchange.
© The Globe and Mail
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