TOKYO (Reuters) - Japanese electronics maker Panasonic Corp forecast a bigger-than-expected annual loss after booking a record quarter of red ink battered by weak demand, price falls and restructuring costs.

The company, which vies with Sony Corp for the title of the world's largest consumer electronics maker, has seen its earnings deteriorate as the global economic crisis prompts consumers to cut spending on flat TVs and digital cameras.

Like many other Japanese companies, it has suffered an additional blow as strength in the yen made its products lessprice competitive overseas.

But while Panasonic expects its key TV business to remain in the red this year, it forecast overall operating profit growth of around 3 percent.

"Compared to Sony and other rivals, Panasonic has good track record of restructuring its way back to profitability," said Takeshi Osawa, senior fund manager at Norinchukin Zenkyoren Asset Management.

"I have more faith in Panasonic's ability to recover than I do for other firms."

The world's No.1 plasma TV maker ahead of Samsung Electronics Co expects a net loss of 195 billion yen (US$2 billion) for the year to March, 86 percent larger than a consensus in a poll of 17 analysts by Thomson Reuters.

Panasonic said in February it would cut 15,000 jobs and close 27 manufacturing sites, increasing its restructuring costs for the past financial year and hitting its profits.

The company said restructuring costs are expected to be 88 billion yen this financial year, after booking 367.4 billion yen for the year just ended.

Panasonic, which competes with Canon Inc and Sony in digital cameras and camcorders, said its net loss for the January-March quarter totalled 444.3 billion yen, down from a 61.6 billion yen profit a year earlier.

Panasonic is in talks with regulators to obtain approval for its planned acquisition of smaller rival Sanyo Electric Co Ltd.

Panasonic shares rose 4.8 percent ahead of the results, outperforming a 3.7 percent rise in the Tokyo market's electrical machinery index.

Its shares have gained 31 percent so far this year, outperforming a 22 percent increase in the subindex.