Tokyo: Japanese electronics giant Panasonic said that its net profit soared 57 percent from a year ago, mainly thanks to a tax accounting change as the electronics giant continues to reshape its business.
The Osaka-based firm’s earnings for the three months to June surged to 59.52bn yen ($482m), while operating profit edged down seven percent to 76.56bn yen.
Sales were almost flat at 1.86 trillion yen from a year ago.
The upbeat net profit was also supported by Panasonic’s lesser-known auto parts unit.
The division’s bottom line grew 35 percent from the same period last year “due mainly to rationalisation in materials, fixed-cost reductions and the positive impact of exchange rate fluctuation”, the company said in a statement.
Panasonic’s auto division makes various products found in vehicles, including electrical components and car navigation systems.
It has also agreed on a capital and business alliance with Spain’s Ficosa International to jointly produce electronic mirror systems, taking a 49 percent stake in the firm last month.
A weaker yen has made Japanese exporters relatively more competitive overseas and inflated the value of repatriated overseas profits. For the current fiscal year, which started in April, Panasonic kept its forecast for a 180bn yen net profit on revenue of 8 trillion yen.
Last business year was a standout for Panasonic, posting a near 50 percent jump in profit while rivals Sony and Sharp continued to struggle. The firms have been working to move past years of gaping deficits, partly caused by steep losses in television units hammered by competition from lower-cost rivals particularly in South Korea and Taiwan.
The trio have launched huge restructuring plans with Panasonic emerging as the leader as it focuses less on consumer products and more on goods sold to other businesses.
Panasonic is pulling the plug on its last remaining TV manufacturing factory in China owing to the sharp decline in prices. AFP
