Panasonic, Sharp Post Fiscal Q1 Profits

TWICE Staff -- TWICE, 7/29/2010

Osaka, Japan - Panasonic and Sharp both reported profits for their first fiscal quarter, ended June 30.

Panasonic said consolidated group sales for the first quarter increased 35 percent to 2,161.1 billion yen, from 1,595.5 billion yen in the first quarter of fiscal 2010 (a year ago), growing sales in all segments.

Net income was 43.7 billion yen, a dramatic shift from its 53 billion yen loss during last year's first quarter.

In its digital AVC networks unit, sales rose 8 percent to 831.7 billion yen, from 773.3 billion yen a year ago, Panasonic reported, despite sales decline of mobile phones. This was due primarily to strong sales of flat-panel TVs, Blu-ray Disc recorders and automotive electronics.

Operating profit "significantly improved," the company said, to 27.9 billion yen, from operating loss of 13.6 billion yen a year ago, mainly due to the sales increase and "comprehensive streamlining efforts."

Panasonic also reported it would spend up to $9.36 billion to turn subsidiaries Sanyo Electric and Panasonic Electric Works into wholly owned units of the company to increase efficiencies and take full control of its rechargeable lithium-ion batteries and solar panel-businesses.

Panasonic completed the deal to take a majority stake in Sanyo last December.

Sharp reported a net profit of 10.69 billion yen in its fiscal first quarter, ended June 30, in a dramatic swing from the operating loss of 25.2 billion yen the prior year.

Net sales were up 24 percent to 741.6 billion yen for the quarter.

Among the categories that drove growth during the quarter were its Aquos LCD TVs and mobile phones. Sharp introduced Aquos Quattron models, which combine its proprietary UV2A technology and four-primary-color technology, in the U.S. and Europe and also introduced 3D-compatible Aquos Quattron 3D models. In mobile phones, Sharp launched handsets equipped with an open-source OS.

The consumer/information products group had sales of 480.3 billion yen, up from 11.2 percent over last year.