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Panasonic Profits Grow In Fiscal Q1

7/31/2013 06:05:00 AM Eastern

Osaka, Japan — Panasonic reported higher operating profit and net income, but CE sales were down as the company emphasized profitability in its fiscal first quarter, ended June 30.

Operating profit increased to 64.2 billion yen, from 38.6 billion yen a year ago, due mainly to fixed cost reduction, including a decrease in bonuses and positive impact of yen depreciation.

Net income rose to 107.7 billion yen, from 12.8 billion yen the prior year, mainly on a one-time gain of 79.8 billion yen from pension plan changes incurred as other income.

Consolidated group sales for the first quarter increased 1 percent to 1,824.5 billion yen, which Panasonic again attributed to the positive impact of yen depreciation and stable sales in housing and automotive businesses. This is in spite of lower sales in digital consumer related products due to weak demand and Panasonic’s emphasis on profitability in CE vs. sales volume.

In its AVC networks segment, its CE business, Panasonic said sales decreased 10 percent to 360.5 billion yen from a year ago. Sales of TVs and mobile phones “decreased significantly” due to weak demand and the elimination of unprofitable models, the company said.

The segment loss was 16.7 billion, almost unchanged from a year ago, “despite an improvement in the panel business,” Panasonic said.

In appliances, sales increased 3 percent to 313.3 billion yen year on year, and segment profit decreased by 39 percent to 12.7 billion yen.