Panasonic’s industrial focus pays off

Comment on this story
br PANASONIC-EARNINGS Reuters Shoppers consider Panasonic's Viera television sets at a store in Tokyo. The company's operating profit more than tripled in the quarter to December as its restructuring progressed. Photo: Reuters

Tokyo - The quarterly earnings of Panasonic more than tripled, the company said yesterday, extending its renaissance as a maker of hi-tech parts for cars and energy-efficient homes with few qualms about selling off legacy businesses that once dragged it into losses.

The Japanese firm said operating profit surged to ¥116.6 billion (R13bn) in the three months to December. It also signalled it was nearing the end of its long-running restructuring, striking a deal to sell microchip assembly plants in south-east Asia to a unit of Singapore’s UTAC Holdings.

Panasonic is emerging from a period of heavy losses across Japan’s consumer electronics industry, squeezed by competition from aggressive rivals like Samsung Electronics. After losing $15bn (R167bn) over the previous two years, Panasonic’s reinvention of itself as a force in car making and homebuilding, rather than televisions or smartphones, means it is forging ahead of peers like Sony in the restructuring game.

“We see Panasonic emerging as a transformation champion… beyond restructuring, Panasonic looks positioned to emerge as a strong corporate leader,” Atul Goyal, an analyst at Jefferies in Singapore, said in a note issued to clients ahead of the earnings report.

The group’s quarterly net profit grew to ¥73.7bn from ¥61.4bn a year earlier.

Under president Kazuhiro Tsuga, Panasonic has been shifting away from consumer-oriented sectors and embracing business clients instead. While selling off its health-care arm and semiconductor operations, it is restructuring its television operations, where losses narrowed to ¥8.1bn from ¥25.5bn.

By contrast, its automotive and industrial systems division posted ¥28.2bn in profit, while its eco solutions segment earned ¥32.1bn. Both serve sectors that have benefited from reflationary policies and a weaker yen under Prime Minister Shinzo Abe. – Reuters


sign up
 
 

Comment Guidelines



  1. Please read our comment guidelines.
  2. Login and register, if you haven’ t already.
  3. Write your comment in the block below and click (Post As)
  4. Has a comment offended you? Hover your mouse over the comment and wait until a small triangle appears on the right-hand side. Click triangle () and select "Flag as inappropriate". Our moderators will take action if need be.

  5. Verified email addresses: All users on Independent Media news sites are now required to have a verified email address before being allowed to comment on articles. You are only required to verify your email address once to have full access to commenting on articles. For more information please read our comment guidelines