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Sanyo 07/08 profit to jump 40%

Sanyo Electric Co will likely post a jump of around 40% in operating profit for 2007/08, beating its forecast by about 27%.

The Mainichi newspaper said Sanyo's group operating profit for the year ended March 31 is expected to total around ¥70 billion ($680 million), against the company's ¥55 billion projection. Nine analysts predict on average a profit of ¥60 billion, according to Reuters Estimates.

Sanyo said in a statement it had not released the figures and would announce its earnings later in the day.

The report failed to cheer investors, and its shares fell 1.7% to ¥282, in line with the broader market.

Sanyo has been restructuring with the help of shareholder Goldman Sachs after its bottom line was hit hard by hefty costs to cut thousands of jobs, steep price falls and damage from an earthquake to its microchip plant.

Net profit will also likely beat the company's forecast of ¥20 billion, which would be the first profit in four years, on the back of strong sales of batteries and digital cameras, the paper said.

The sale of its loss-making mobile phone business had also contributed, it said.

Sanyo has been focusing its resources on solar cells and rechargeable batteries, its cash cow operations, allocating 70% of its planned capital spending in the next three years to the battery business and electronic parts.  (Reuters)