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Panasonic Reports Lower Q1 Sales, Loss

Osaka, Japan –
Panasonic reported lower sales and a net loss in its fiscal first quarter,
ended June 30.

Consolidated group
sales for the first quarter decreased by 11 percent to 1,929.5 billion yen due
mainly to the Japan earthquake on March 11, compared with 2,161.1 billion yen
for the first quarter last year.

Net loss
attributable to Panasonic amounted to 30.4 billion yen, decreased from a profit
of 43.7 billion yen a year ago.

Panasonic said
that during the first quarter the Japanese economy was in a severe condition
due to the earthquake, though it was on the way to recovery. In the meantime,
the global economy showed signs of slowdown caused by the concern for the U.S.
economic recession and inflation, although demand in emerging markets including
China expanded.

In its digital AVC
networks segment, sales decreased by 21 percent to 660.6 billion yen, from
831.7 billion yen a year ago. Despite favorable sales of Blu-ray Disc
recorders, this result was due mainly to sales declines in flat-panel TVs,
automotive electronics and mobile phones. Segment loss amounted to 16 billion
yen, compared with segment profit of 27.9 billion yen a year ago due mainly to the
sales decrease and the appreciation of the yen.

In its home appliances
segment, sales increased by 6 percent to 342.9 billion yen, compared with 322.8
billion yen a year ago due mainly to favorable sales in air conditioners as
well as stable sales in washing machines and microwave ovens.

Panasonic reported
that segment profit increased by 4 percent to 33.6 billion yen, compared with
32.3 billion yen a year ago due mainly to sales increase and streamlining

As for Sanyo, sales
decreased by 22 percent to 324.0 billion yen, compared with 413.0 billion yen a
year ago. Although sales of cold-chain equipment, commercial air conditioners
and solar photovoltaic systems were stable, sales of devices, digital cameras
and others were sluggish. Sales decline owing to the semiconductor business
transfer in fiscal 2011 also led to the overall sales decrease. This resulted in
segment loss of 14 billion yen, compared with segment profit of 5 billion yen a
year ago after incurring the expenses such as amortization of intangible assets
recorded at the acquisition.

Panasonic also
reported that Sanyo has reached a tentative agreement with Haier Group to sell its
consumer and commercial use washing machine businesses, consumer use
refrigerator business and its white goods sales divisions of four countries in
Southeast Asia.

The deal should
close by the end of March 2012 with both sides wanting to finalize the deal by
the end of September 2011. The price of the deal was not disclosed.