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Panasonic Posts Reduced Loss In Fiscal Year

5/07/2010 02:57:17 PM Eastern

Osaka, Japan - Panasonic reported a 4 percent drop
in sales and a reduced loss for the fiscal year, ended March 31. 

Consolidated group sales for fiscal 2010 decreased 4
percent to 7,418.0 billion yen, from 7,765.5 billion yen in the prior year.
Overseas sales decreased 7 percent to 3,423.6 billion yen, from 3,683.3 billion
yen in the prior year.

The net loss was 103.5 billion yen, improved from a
loss of 379.0 billion yen a year ago. Panasonic incurred expenses of 219.8
billion yen including business restructuring expenses, such as the
implementation of early-retirement programs, which impacted the bottom
line.

Operating income for this fiscal year improved
significantly to 190.5 billion yen, up 161 percent from 72.9 billion yen in
fiscal 2009. Panasonic said this was due mainly to restructuring initiatives
such as streamlining material costs and reducing fixed costs.

In its digital nVC Networks division, sales
decreased 9 percent during the year. Although domestic sales of flat-panel TVs
and automotive electronics and Blu-ray Disc recorders were favorable, overall
sales declined due mainly to a sales decline of notebook PCs and mobile phones.

Despite this sales decline, operating profit
significantly improved to 87.3 billion yen, from 3.2 billion yen in fiscal 2009.
This was due mainly to comprehensive streamlining efforts, the company
said.

In appliances, despite strong sales of
refrigerators, overall sales in this segment decreased 7 percent during the year
due mainly to weak sales of air conditioners and compressors. Comprehensive
streamlining efforts offset the negative impact of sales decline and led the
operating profit increase of 36 percent to 66.5 billion yen, compared with 49.0
billion yen in fiscal 2009.

Panasonic reported Sanyo sales from January to March
2010 totaled 404.8 billion yen. Sales of solar cells were strong helped by
economic stimulus programs and environment policies in several countries.
Operating profit resulted in a loss of 0.7 billion yen, incurring the expenses
such as amortization of intangible asset recorded at its
acquisition.