*January 25, 2006 *– According to leading financial news wires, Sanyo stock is up 8% percent on the news that Satoshi Iue has resigned from Sanyo’s board and handed control over to representatives of Goldman Sachs, Daiwa Securities SMBC and Sumitomo Mitsui Financial Group.
The three banks took control as part of a deal to inject funds into the struggling Japanese electronic giant and pay for restructuring in an effort to save Sanyo from its declining profits and heavy debt. Satoshi Iue’s exit marks the decline of the founding family’s involvement in the company, as the 73-yr old executive director was the son of Toshio Iue, the founder of Sanyo.
Sanyo’s financial difficulties over the past few years can be attributed to the earnings drop in products like DVD recorders and digital cameras, where they have failed to stay competitive. The company was also greatly shaken by an earthquake that knocked out a major semiconductor factory plant in 2004.
Sanyo, however, still remains the leading manufacturer of rechargeable batteries. Part of their restructuring is predicted to focus on growing this profitable niche.