Panasonic says on track to meet annual profit target despite third quarter dip

February 3
5:06 AM 2015

Japanese electronics firm Panasonic Corp said a dip in quarterly operating profit won't derail it from hoisting earnings 15 percent this year as a restructuring strategy of exiting low-margin product lines like TVs continues to pay off.

Osaka-based Panasonic said on Tuesday operating profit slipped 2.8 percent in its fiscal third quarter ended December to 113.3 billion yen ($967 million) from 116.6 billion yen a year earlier. Analysts polled by Thomson Reuters had estimated on average a bigger fall, to 109.7 billion yen.

Squeezed into multi-billion dollar losses in 2012 and 2013 by stiff competition from aggressive, cheaper Asian rivals, Panasonic has restructured itself by shifting its focus to high-tech parts for cars and energy-efficient homes, and away from smartphones and TVs.

It reiterated its full-year operating profit forecast of 350 billion yen, raised from 310 billion yen on Oct. 31 last year. In the previous fiscal year, operating profit was 305.1 billion yen.

© 2022 VCPOST, All rights reserved. Do not reproduce without permission.


Join the Conversation

Subscribe to VCpost newsletter

Sign up for our Deals of the Day newsletter.
We will not spam you!

Real Time Analytics