Panasonic confirmed the trend amongst Japan’s technology companies on Friday when it said that economic conditions remain severe, but that it hopes to post a small operating profit this year, prior to the cost of further restructuring.

The electronics group, which will be Japan’s largest once it completes the takeover of Sanyo Electric, forecast a further 10 per cent decline in sales this year to Y7,000bn ($73bn), an operating profit of Y75bn and a net loss of Y195bn for the year to March 2010.