Panasonic slashes profit forecast

Panasonic is one of Japan's leading electronics exporters

Japanese consumer electronics firm Panasonic has cut its annual profit forecast by 90% because of the global economic downturn.

The company now expects to report net profits of 30bn yen ($315m, £210m) for the year ending in March 2009.

Panasonic made a net profit of 281.88bn yen a year ago and had originally forecast a 310bn yen profit this year.

It said conditions were "deteriorating sharply" because of falling consumer spending and tougher competition.

The company also cut its sales forecast by 7.6% to 8.5 trillion yen.

Panasonic cited the rise in the value of the yen as another reason for weaker profits. A stronger yen cuts the exporter's overseas earnings.