Panasonic slashed its operating profit forecast by 40 per cent on Wednesday, only a month after saying that it was too soon to judge the effects of the economic slowdown.

The Japanese electronics group said it now expected to make only Y340bn ($3.6bn) in operating profit in the year to March 2009, and that it would suffer a net loss of Y98.5bn in the second half, because of restructuring costs and losses on its securities portfolio.