Panasonic Reports Lower Q1 Sales, Loss

By TWICE Staff -- TWICE, 7/28/2011

Osaka, Japan - Panasonic reported lower sales and a net loss in its fiscal first quarter, ended June 30.

Consolidated group sales for the first quarter decreased by 11 percent to 1,929.5 billion yen due mainly to the Japan earthquake on March 11, compared with 2,161.1 billion yen for the first quarter last year.

Net loss attributable to Panasonic amounted to 30.4 billion yen, decreased from a profit of 43.7 billion yen a year ago.

Panasonic said that during the first quarter the Japanese economy was in a severe condition due to the earthquake, though it was on the way to recovery. In the meantime, the global economy showed signs of slowdown caused by the concern for the U.S. economic recession and inflation, although demand in emerging markets including China expanded.

In its digital AVC networks segment, sales decreased by 21 percent to 660.6 billion yen, from 831.7 billion yen a year ago. Despite favorable sales of Blu-ray Disc recorders, this result was due mainly to sales declines in flat-panel TVs, automotive electronics and mobile phones. Segment loss amounted to 16 billion yen, compared with segment profit of 27.9 billion yen a year ago due mainly to the sales decrease and the appreciation of the yen.

In its home appliances segment, sales increased by 6 percent to 342.9 billion yen, compared with 322.8 billion yen a year ago due mainly to favorable sales in air conditioners as well as stable sales in washing machines and microwave ovens.

Panasonic reported that segment profit increased by 4 percent to 33.6 billion yen, compared with 32.3 billion yen a year ago due mainly to sales increase and streamlining efforts.

As for Sanyo, sales decreased by 22 percent to 324.0 billion yen, compared with 413.0 billion yen a year ago. Although sales of cold-chain equipment, commercial air conditioners and solar photovoltaic systems were stable, sales of devices, digital cameras and others were sluggish. Sales decline owing to the semiconductor business transfer in fiscal 2011 also led to the overall sales decrease. This resulted in segment loss of 14 billion yen, compared with segment profit of 5 billion yen a year ago after incurring the expenses such as amortization of intangible assets recorded at the acquisition.

Panasonic also reported that Sanyo has reached a tentative agreement with Haier Group to sell its consumer and commercial use washing machine businesses, consumer use refrigerator business and its white goods sales divisions of four countries in Southeast Asia.

The deal should close by the end of March 2012 with both sides wanting to finalize the deal by the end of September 2011. The price of the deal was not disclosed.