Panasonic 9-month Profit Down; But Lifts FY Outlook

Japanese electronics maker Panasonic Corp. (PCRFY.PK,PCRFF.PK) reported that its net profit attribute to stockholders for the nine months ended December 31, 2020 decreased by 27% to 130.1 billion yen from a year ago.

Operating profit decreased by 6% to 226.8 billion yen from a year ago, due to the impact of decreased sales, despite fixed cost reductions for management structure enhancement as well as the effect from profitability improvement efforts in automotive business.

Consolidated group sales for the period decreased by 15% to 4.87 trillion yen from a year ago. Domestic sales decreased due mainly to the impact of the spread of COVID-19 as well as the impact of de-consolidation in housing related businesses, despite increased sales in products such as air purifiers.

Overseas sales decreased due largely to the impact of the spread of COVID19, despite increased sales in products such as mounting machines at Process Automation, power storage systems for information- and communication-infrastructure, industrial-use motors as well as washing machines.

The company raised its net sales outlook for fiscal year 2021 to 6.60 trillion yen from the previous outlook of 6.50 trillion yen, reflecting an increase of current sales in real terms, excluding the effect of exchange rates and the impact of de-consolidation.

The company now expects annual operating profit to be 230.00 billion yen, net profit attribute to stockholders of 150 billion yen or 64.29 yen per basic share. Previously, the company expected annual operating profit to be in the range of 150.00 billion yen, net profit attribute to stockholders of 100 billion yen or 42.86 yen per basic share.

The forecasts for operating profit, profit before income taxes and net profit attributable to stockholders are revised upward reflecting the steady progress of management structure enhancement as well as higher sales.

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