Business
Sony, Panasonic Brace For Grim Earnings
Sony Corp and rival
Panasonic Corp are set to report a slump in quarterly earnings and may cut full-year forecasts after being hit by yen strength, Thai floods and consumer gloom in Europe during the vital pre-Christmas period.
Both companies saw their debt ratings downgraded by Moody’s Investor Services last week, as their TV divisions continue to bleed red ink despite restructuring efforts.
Sony, which reports on February 2, is expected to barely break even for the normally lucrative October-December quarter. Operating profit is seen shriveling 94 percent to 8.8 billion yen ($114.3 million), based on an average estimate from 6 analysts polled by Thomson Reuters I/B/E/S.
That would be its worst third-quarter performance since the 2008 financial crisis. By contrast, Samsung Electronics posted a record quarterly profit this month on growing smartphone sales.
During the quarter, Europe’s debt crisis battered consumer confidence there while U.S. holiday spending on traditional electronic goods such as TVs and cameras — which Japanese makers are more reliant on — fell, as TV prices slid and as consumers splurged more money on tablets.
Japan’s TV makers have fallen behind their South Korean counterparts, partly hobbled by unfavourable exchange rates and their failure to bite the bullet on necessary investments.
“They have not made the right massive investments in panel manufacturing at the right time. If you do this half-heartedly, it ties your hands and has the opposite of the desired effect,” said Nobuo Kurahashi, an analyst at Mizuho Investors Securities.
Sony said last month it had extricated itself from its liquid-crystal display panel-making venture with Samsung Electronics, allowing it to source cheaper panels from the open market to try to keep pace with declines in TV prices.
That was seen as a necessary step to return its ailing TV business to profit after what is expected to be its eighth straight annual loss in the year to March.
But TV prices continue to slide. A 40-inch flat panel TV cost an average 68,200 yen in Japan in December, down nearly 40 percent from a year earlier, according to research firm BCN.
The maker of everything from PlayStation games consoles to “The Smurfs” movie, Sony has touted its mobile phone business as a way of integrating its online content offerings across devices to better compete with Apple.
But Sony Ericsson posted an unexpected 247 million euro ($322.3 million) loss for the final quarter, underscoring the hurdles Sony faces in smartphones too.
For the full-year to end-March, the market consensus from 19 analysts is for Sony to post an operating profit of just 8 billion yen, below the company’s forecast of 20 billion yen.
Panasonic, which reports on February 3, is expected to see a 41 percent fall in quarterly operating profit to 56.2 billion yen, hurt by losses in its TV division, lower chip earnings and a weak performance from its Sanyo unit.
Analysts expect a full-year operating profit of 124 billion yen, less than the company’s forecast of 130 billion yen, and the firm may cut its guidance for the second time.
The company is already forecasting a 420 billion yen net loss for the year, its worst in a decade, as it hives off overlapping businesses after buying out subsidiaries including Sanyo and accelerates restructuring in its TV division.
The best performer among domestic TV players may well be Sharp Corp, whose move to focus on premium large screen televisions, capitalising on its 10th generation LCD panel plant, may protect it from a slide in profit, some analysts say.
Games maker Nintendo Co Ltd, which kicks off the sector’s earnings announcements tomorrow, is expected to see a 50 percent slide in quarterly profit after slashing the price of its 3DS handheld games gadget to boost sales.
Shares in Sony have fallen by almost half since the beginning of the financial year, while Panasonic has fallen about 40 percent, compared with a decline of 10 percent for the Nikkei.
($1 = 77.1200 Japanese yen) ($1 = 0.7665 euros)
Business
USTR Criticises Nigeria’s Import Ban On Agriculture, Others
The United States Trade Representative (USTR) has criticised Nigeria’s import ban on 25 categories of goods, claiming that the restrictions limit market access for American exporters.
This is the effect of President Donald Trump’s tariffs introduction on goods entering the United States, with Nigeria facing a 14 per cent duty.
The USTR highlighted the impact of Nigeria’s import ban on various sectors, particularly agriculture, pharmaceuticals, beverages, and consumer goods.
The restrictions affect items such as beef, pork, poultry, fruit juices, medicaments, and alcoholic beverages, which the United States sees as significant barriers to trade.
The agency argues that these limitations reduce export opportunities for United States businesses and lead to lost revenue.
“Nigeria’s import ban on 25 different product categories impacts United States exporters, particularly in agriculture, pharmaceuticals, beverages, and consumer goods.
“Restrictions on items like beef, pork, poultry, fruit juices, medicaments, and spirits limit United States market access and reduce export opportunities.
“These policies create significant trade barriers that lead to lost revenue for United States businesses looking to expand in the Nigerian market”, the agency said .
In 2016, Nigeria implemented the ban on these 25 items as part of efforts to control imports and stimulate local production.
Some of the banned items include poultry, pork, refined vegetable oil, sugar, cocoa products, spaghetti, beer, and certain medicines.
On March 26, 2025, the Federal Government also announced plans to halt solar panel imports to encourage local manufacturing as part of its push for clean energy.
Business
Expert Seeks Cooperative-Driven Investments In Agriculture
A leading agribusiness strategist and digital agriculture expert, Ayo Oluwa Okediji, has sought cooperative-driven investments in sustaining growth of poultry industry in Nigeria.
He said the poultry industry was at a defining moment and requires urgent structural reforms to secure its future and ensure long-term sustainability.
Speaking on the theme, “Strengthening Poultry Farming Through Cooperative Synergy and Strategic Investments”, at the recently concluded Oyo Mega Poultry Workshop 2025 in Ibadan, Okediji called on poultry farmers, cooperative leaders, financial institutions and policy makers to rethink the existing structure of the poultry sector.
He stressed the need to transition from fragmented, individually-driven operations to well-structured, cooperative-led enterprises capable of attracting sustainable financing and securing long-term viability.
He said, “Our poultry sector cannot thrive on individual effort alone. We need to organise ourselves into cooperative clusters, build strong governance systems and position ourselves to attract the level of investment needed to sustain this industry beyond this generation.”
Drawing on lessons from successful global cooperative models such as Rabobank in the Netherlands and Landus Cooperative in the United States, Okediji introduced the FarmClusters Poultry Model, a locally adapted solution developed by Agribusiness Dynamics Technology Limited (AgDyna), a subsidiary of AgroInfoTech Africa.
According to him, the model is currently being piloted in Oyo State in partnership with PANOY Agribusiness Limited and local poultry cooperatives.
Business
NACCIMA Proposes Hybrid Oil Palm Seedlings For Farmers
The Rivers State Representative of the Nigeria Chambers of Commerce, Mines, Industries and Agriculture (NACCIMA), Mr. Erasmus Chukwundah, has urged palm oil farmers to consider hybrid seedlings for planting, if they must break even in palm oil business.
Chukwundah said this recently at the Free Oil Palm Business Climate Smart Best Management Practice/Assistance Training organized by Partnership Initiative In Niger Delta (PIND) for Palm Oil Farmers in Elele, Ikwerre Local Government Area.
The Rivers representative said until palm oil farmers begin to consider such hybrid oil palm seedlings, they may not meet up with the daily increasing demand of palm oil in the market.
According to him, the seedlings produce up to 30 bunches at once that ripen same time.
He said PIND decided to partner with Oil Palm Growers Association of Nigeria (OPGAN) to ensure that the message was received by the targeted audience.
According to him, palm oil remained a popular choice of industry operators as it could be converted to many other products such as vegetable cooking oil.
He also noted that products such as motor tyers, marine ropes and others are now gotten from the palm tree.
Chukwundah, who is the immediate past Director-General of Port Harcourt Chamber of Commerce, Mines, Industries, and Agriculture (PHCCIMA), further warned against use of unrecommended fertilisers in growing oil palms.
He noted that such practices could limit its export value or chances as the foreign marketers have a way of detecting such .
He reiterated the need for organic fertilizers, including poultry droppings, to enable them have a natural palm oil.
“People must reduce physical contact with palm oil production. That is why we are campaigning for hydrolic oil mills. The foreign markets are no longer interested in crude method of palm oil production”, he said.
Meanwhile, one of the farmers, Sonny Didia, who appreciated Chukwundah’s commitment towards the concern of farmers, appealed for an urgent need for loan opportunity with low interest rate in order to enable them beat the target.
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