Japan's Matsushita has suffered a 172bn yen (�901m; $1.3bn) loss for the three months to December, and downgraded its full-year forecast because of slack technology demand.

The electronics giant, best known for its Panasonic brand, blamed its dismal performance on restructuring costs and severe competition.

Group revenue sank 13% to 1.7 trillion yen, with sales in Japan down by one-quarter and those from other countries unchanged.

The losses were mainly owing to "sales declines, especially in mobile communications equipment, including cellular phones, and components and devices for the information technology industry," Matsushita said in a statement.

"Matsushita expects that the current severe business environment will continue through the fourth quarter, affecting in particular the audio-visual, computer networks and components and devices categories."

In January, Matsushita announced it would acquire all outstanding shares of its five subsidiaries in an effort to turn its loss-making business around.