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)
MoniePoint Inc. a digital financial firm in Nigeria, has said it is empowering community pharmacists across the country with innovative payment solutions to improve access to drugs.
The financial firm said it had also provided loans for pharmacists under the aegis of the Association of Community Pharmacists of Nigeria (ACPN) to drive healthcare delivery in the country.
MoniePoint in a release titled, “Inside Nigeria’s community pharmacies: How Moniepoint drives healthcare access with payments and funding”, has reaffirmed its commitment to providing digital payment solutions to improve health outcomes in Nigeria.
The release examined how community pharmacies play a crucial role as vital access points for medical care in Nigeria, especially in areas with limited hospital or clinic access.
According to the release, the ACPN National Chairman, Ambrose Igwekwam, highlighted the critical role played by community pharmacies in Nigeria’s healthcare system over the years.
Igwekwam, however, expressed concerns over the challenges confronting the nation’s pharmaceutical industry which he said was hindering access to affordable medicines.
The pharmacist listed poor infrastructural systems, power, transportation, regulatory bottlenecks, importation dependency, and limited research opportunities as major challenges facing the pharmaceutical sector.
He also stressed the need for robust collaborative efforts with institutions like Moniepoint to strengthen the sector.
“As Nigeria continues to grow, improving local pharma manufacturing to meet the demands of this growth presents a key opportunity for us all.
“There is also the African Continental Free Trade Area Agreement, which is expected to boost our industry, especially when we start producing our drugs locally, which will provide the much needed foreign exchange from exports.
“We are also seeing advancements in digital health and technology which would hopefully deepen the practice of e-prescription in Nigeria”, the ACPN boss said.
Corlins Walter
In order to enhance customer service and streamline operations, the Chartered Insurance Institute of Nigeria (CIIN) has called on stakeholders in the insurance industry to embrace Artificial Intelligence (AI).
The President of the institute, Yetunde Ilori, made this call at the 2024 Office Representatives Committee (ORC) Workshop, organised by the institute, with the theme “AI and the Future of the Insurance Industry”, in Lagos.
Ilori at the event, emphasised the importance of AI adoption, noting that it was not a threat to jobs but rather a tool to improve efficiency across the insurance sector.
“It is not about AI taking over our jobs, but about us using AI to simplify processes and give maximum satisfaction to all the customers we serve whether as underwriters, brokers, loss adjusters, or in educating our members”, she said.
The workshop, which brought players in the insurance sector together, aimed to address how AI could be leveraged to transform business processes and improve customer interactions.
The Chairman of the ORC, Monica Nwachukwu, underscored the role of AI in modernising the industry, adding, “AI can automate customer and claims processes, allowing insurers to provide faster and more efficient services to their customers”.
She explained how AI could help extract data from legacy systems, enhancing decision-making processes.
“By integrating AI with APIs, insurers can feed valuable data into AI solutions to improve operations and customer service”, she added.
In his address, the Managing Partner of A4S and Training Heights, Orlando Odejide, stressed the need for companies to align their strategies with future technologies like AI, especially as they prepare for 2025.
“Any organisation that wants to grow into the future must have its strategic plan in place. If your strategy for 2025 is not ready, it should be done by October”, he advised.
He encouraged participants to think critically about how AI could be integrated into their business models to ensure they remain competitive.
“The idea is for you to use this workshop as a platform to think about your organization and how AI can help streamline your processes and improve growth”, Odejide noted.
In order to gain global respect and recognition, the National Space Research and Development Agency (NASRDA) has reaffirmed its determination to pursue its goal in ensuring that Nigeria’s space capabilities are recognised on the world stage.
The agency also reaffirmed its commitment to positioning Nigeria as a key player in the global space economy.
In a statement by the Director of Media and Corporate Communications, Dr. Felix Ale, NASRDA revealed that the Director-General of the agency, Matthew Adepoju, emphasised this during recent engagements at the 79th United Nations General Assembly and the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) and Global Alliance Business Association international conference in Michigan, United States.
The statement noted that Adepoju outlined a forward-thinking agenda, stressing the importance of Nigeria’s space programme as a leader in research, exploration, and technological innovation.
“Our goal is to ensure that Nigeria’s space capabilities are recognised on the world stage.
“We must foster collaborations with global space agencies to enhance our satellite capabilities and technological infrastructure”, he stated.
The NASRDA boss said the agency is focusing on enhancing satellite capabilities, expanding international collaborations, and leveraging space science for national development.
He said NASRDA will have no stone unturned in pursuit of excellence, ensuring the agency secures the necessary resources and recognition to propel it forward.
“The relationships we build today will pave the way for tomorrow’s advancements in space science.
“Innovation and progress thrive in an environment built on collaboration and inclusivity”, he stated.
He emphasised that with the support of the government, international partners, and a dedicated team, NASRDA is poised to make significant strides in the evolving global space landscape.
“We are on the brink of a new era for Nigeria’s space agency. Together, we will ensure our nation stands out in the global space economy”, he said.
Corlins Walter