By Steve Smith On Aug 2 2010 - 3:01am
NEW YORK — Earnings season
began as July ended,
and there was positive news,
if not outright growth, from
four major consumer electronics
Sony, Panasonic and Sharp
all reported improved quarterly
performances. And while LG Electronics did not see its profits increase
in the quarter ending June 30, it also posted
Here are highlights from key manufacturers:
turned a profit in its fiscal first quarter
and reported higher overall sales partly
due to sales increases in LCD TVs and
Sales and operating revenue was 1.661
trillion yen ($18.7 billion), up 3.8 percent in
yen for the quarter. Net income was 25.7 billion
yen ($289 million), a turnaround from
a 37.1 billion yen loss in last year’s opening
However, the company warned that unfavorable
exchange rates could hurt the company
going forward. For instance, Sony
said that during the quarter, the average
rate of the yen was 91 yen against the U.S.
dollar and 115.5 yen against the euro, which
was 5.8 percent and 13.5 percent higher,
respectively, than the previous year’s fi rst
Sony’s consumer, professional and
devices segment operating income was
889.5 billion yen ($9.99 billion), up 7 percent,
and operating income was 50.1 billion
yen ($563 million), compared with a
loss in the prior year of 8.9 million yen.
Growth was due in part to increased unit
sales of LCD TVs.
In its networked products and services
segment, sales and operating revenue
was 325.9 billion yen ($3.66 billion), up 32.4
percent, but the operation posted a loss of
3.8 billion yen ($43 million), which is an improvement
from the prior year’s loss of 36.7
billion yen. The sales increase was due to
PC and PlayStation3 sales.
reported 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 53.0 billion yen loss during
last year’s first quarter.
In its digital AVC networks unit, sales
8 increased 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.
Panasonic also reported it would spend
up to $9.36 billion to turn subsidiaries Sanyo
Panasonic Electric Works
into wholly owned units of the company to
increase efficiencies and take full control of
its rechargeable lithium-ion batteries and
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.
The consumer/information products
group had sales of 480.3 billion yen, up from
11.2 percent over last year.
still posted a profit in
its second quarter but it was less than
LG reported a net profit decline by 33 percent
in the fiscal second quarter, to 856 billion
won, from 1.28 trillion won in the same
period last year.
Overall sales were down 0.7 percent in
the quarter, and operating profit plunged
90 percent from the year-ago period, coming
in at 126.2 billion won.
While sales of TVs and plasma panels
rose 19 percent in the quarter and the
home entertainment unit remained in the
black, the division’s operating profit declined
sharply, to 28.1 billion won from 267.8
billion won in last year’s Q2.
LG cited declining average selling prices
as a result of competition among set makers
for the decreased profitability.
LG’s mobile communications division reported
a sales decline of 29.5 percent year
to year, leading to an operating loss of 133
One bright spot for the company was
the home appliance unit, which posted a
healthy 16.5 percent growth in sales year
to year and a profit of 185 billion won, up
from 178 billion won a year ago. — Additional
reporting by John Laposky