Panasonic Has Huge Fiscal Q1 Profit Increase

OSAKA, JAPAN — Matsushita Electric Industrial, marketers of the Panasonic brand, reported an 86 percent increase in net income in its fiscal first quarter, with CE products leading the way.

Despite a sluggish economy, world economy net income increased 86 percent during its fiscal first quarter, ended June 30, to $677.8 million while operating profit soared 48 percent to $1.01 billion, the company reported.

Matsushita's digital A/V network unit helped drive profitability, with operating profit up 41 percent to $510.6 million, the company said.

The segment posted a sales increase of 5 percent to $9.06 billion, with sales of video and audio products growing 16 percent compared with last year's first quarter.

Strong flat-panel TV sales, favorable sales in digital cameras and DVD recorders were cited by the company. Information and communications equipment sales were down 3 percent due to sluggish sales in automobile electronics equipment.

In its home appliances segment Matsushita's sales were up 1 percent to $3.18 billion with refrigerators cited as being a strong category. Home appliance profits were up 75 percent to $292.5 million.

Corporately, Matsushita reported that first-quarter sales decreased 4 percent to $19.9 billion because sales of Victor Company of Japan (JVC) were included in last year's first-quarter totals but were not included this year.