Struggling electronics maker Sanyo Electric Co said on Tuesday its mobile phone operations will likely turn profitable in the current quarter to the end of September, helped by brisk demand for its latest models.
The Osaka-based company last month reported a 72 percent fall in operating profit for the April-June quarter, hit by sluggish mobile phone sales.
Some of our summer models are out of stock (due to strong demand). I believe cellphone operations are proceeding according to plan, Sanyo President Seiichiro Sano told Reuters in an interview.
Sano, who in April replaced Toshimasa Iue, the grandson of the company's founder, said the company may turn to M&As to drive its overseas operations of commercial-use air conditioners and refrigerators.
Even if we aim to expand our business in places like the Middle East, it would be really difficult to build a service and sales network from the ground up. There would be time we need to carry out M&As, Sano said.
Prior to the interview, Sanyo shares closed up 0.6 percent at 181 yen, underperforming the Tokyo stock market's electrical machinery index, which gained 1.1 percent.