Panasonic has cut its annual profit forecast by 90% because of the global economic downturn.
The Japanese consumer electronics company now expects to report net profits of 30 billion yen ($US315 million) for the year ending in March 2009.
Panasonic made a net profit of 281.88 billion yen a year ago and had originally forecast a 310 billionn yen profit this year.
It said conditions were "deteriorating sharply" because of falling consumer spending and tougher competition.
The company also cut its sales forecast by 7.6% to 8.5 trillion yen.
Panasonic cited a rise in the value of the yen as another reason for weaker profits. A stronger yen cuts the exporter's overseas earnings.
