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.