If you are thinking that electronics’ makers sailing smooth despite economic downturn, you need to think again at least the revision of profit forecast from Panasonic seems to suggest so. The company has slashed its profit forecasts by 40% for the present fiscal year.

Panasonic was expecting to make 560b yen in the current fiscal year that to end next March, but now the company has cut it down to 340b yen.

According to the company, the current economic slowdown that started in the US was spreading in other parts of the world and just like other businesses it was hitting sales of electronics’ makers as well.

“Due to low consumer spending, intense price competition and yen’s fast appreciation, business environment are getting bad to worse with every passing day. Similarly, some other negative factors like investment securities write-down occurring because of decline in stock prices and business reforming expenses,” the company says.

Some recent news indicate that many big guns of the industry have been showing good results despite worldwide economic slowdown, but this cut down from Panasonic is enough to explain how things are.