The company, which posted its fiscal results Monday (May 28), reported that sales for the March-ended year were down 8 percent from fiscal 2005, to ¥2.22 trillion, or about $18.2 billion. Operating income was ¥49.6 billion ($408 million), reversing the prior year's operating loss of ¥17.1 billion ($141 million).

Sanyo intends to sell its semiconductor business as part of a broader restructuring, and four bidders—Cerberus Capital Management, Rohm Co. Ltd. and two investor groups—reportedly have placed tenders. "Nothing is nailed down yet," a Sanyo spokesman said at the announcement of the company's financial results, but a final decision is expected by early summer.

Among Sanyo's four business segments, only the commercial segment, covering systems such as air conditioning, saw sales rise last year. The consumer, components and "other" sectors reported sales declines, though operating profit rose in all groups except for consumer. Thus some analysts expect Sanyo to look to sell off some consumer businesses, such as digital still cameras and mobile phones.

Seiichiro Sano, who became president as of April 1 this year, said no proposals are off the table as the company formulates its new three-year business plan, to be announced in September.

For fiscal 2007, Sanyo forecasts a decline in operating income, to ¥45 billion ($370 million), on flat sales, citing soaring materials costs. But the company expects to finish the year in the black when net profit is tallied.

By: DocMemory
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