Panasonic returns to annual profit on weak yen

Apr 28, 2014 by Yuri Kageyama

Panasonic returned to profit after deep losses for the past two fiscal years, as a weak yen and restructuring efforts helped a gradual recovery, and forecast a 16 percent increase in gains for the coming year.

Like other Japanese electronics companies, Panasonic Corp. has been struggling amid intense competition from Apple Inc. and South Korea's Samsung Electronics Co. Prices of gadgets have been falling, adding to Panasonic's woes.

The Osaka-based maker of the Lumix camera and Evolta batteries reported Monday 120.4 billion yen ($1.2 billion) in profit for the fiscal year through March 2014, a reversal from a 754.3 billion yen loss the previous fiscal year.

For the fiscal year through March 2015, it is projecting 140 billion yen ($1.4 billion).

For the fiscal year through March 2012, it had lost 772 billion yen, one of the biggest losses ever for a Japanese company.

Sales for the fiscal year ended March 2014 gained 6 percent to 7.737 trillion yen ($75.85 billion), as sales improved in a variety of sectors, including appliances, auto parts and ecological products such as lighting.

A weak is a boon for Japanese exporters by boosting the value of overseas earnings.

The bad news is that the positive impact from a favorable exchange rate is not likely to keep up momentum in coming months.

Panasonic is expecting sales to stay flat for the fiscal year through March 2015.

The Japanese electronics brand that has been a longtime rival to Sony Corp. has also suffered because it lost out in the smartphone sector. But it has been working on its ambitions to grow its relatively newer auto and housing businesses.

Sony reports earnings May 14.

Explore further: Shift in business focus boosts Panasonic earnings (Update)

not rated yet
add to favorites email to friend print save as pdf

Related Stories

Panasonic's red ink grows, forecasts loss for year

Oct 31, 2012

(AP)—Panasonic Corp.'s losses ballooned to 698 billion yen ($8.7 billion) for the fiscal second quarter as sales plunged in flat-panel TVs, laptops and other gadgets, and restructuring costs to turn itself around were proving ...

Panasonic, Sharp expect red ink despite yen help

Feb 01, 2013

Japanese electronics makers Panasonic Corp. and Sharp Corp. both stuck to full year forecasts for massive losses even as results for the latest quarter got a boost from the weaker yen.

Panasonic's April-June net profit up by 8 fold (Update)

Jul 31, 2013

Japanese consumer electronics giant Panasonic Corp. said Wednesday its quarterly earnings surged more than eight-fold, helped by the weaker yen and a one-time boost from a change in its corporate pension ...

Recommended for you

HP revenue inches up after years of decline

12 hours ago

Hewlett-Packard on Wednesday reported that its quarterly revenue rose for the first time in three years, nudged by improved computer sales everywhere except Russia and China.

Restaurants experimenting with pay-in-advance tickets

15 hours ago

With restaurant patrons increasingly jumping on the Internet to make reservations, some high-end eateries here and across the country are adding a new tech wrinkle: having their clientele pay for their meal in advance using ...

Chip maker Infineon to buy California firm for $3B (Update)

18 hours ago

German chip maker Infineon Technologies AG says it has agreed to pay $3 billion in cash for California-based semiconductor firm International Rectifier, which produces power-management components used in everything from cars ...

User comments : 0