Asian Tech Giants Signal Recovery

Upbeat earnings results from a trio of Asian high-tech titans raised hopes that the battered industry is on the mend after a worldwide plunge in demand for electronics due to the global recession.

Japan's Panasonic and Toshiba returned to profit in the most recent quarter while South Korea's Samsung Electronics posted record earnings for the three months to September.

Sony Corp fared worse, however, remaining in the red in the most recent quarter in the face of weak demand for its electronics and fierce competition from Samsung. The company posted a net loss of 26.3 billion yen for the fiscal second quarter through September, swinging into the red after a 20.8 billion yen profit a year earlier.

"In general, Japanese electronics makers are on course to a recovery after hitting bottom at the end of the previous fiscal year," said Hiroshi Sakai, Chief Economist at SMBC Friend Research Center. "But the crucial issue is the year-end shopping season, which will have big impact on their earnings for the fiscal year," he added.

Samsung Electronics said its net profit morethan tripled in the third quarter to $3.13 billion as demand for flat-panel televisions, mobile phones and chips rose in an improving global economy.

Panasonic posted a net profit of 6.1 billion yen in the July-September quarter and narrowed itrs annual loss forecast to 140 billion yen from 195 billion yen.

Toshiba logged a 94 million yen net profit for the July-September quarter, returning to the black after a year-earlier loss of 26.9 billion yen.

Source: New Straits Times