Panasonic forecasts return to profit for first time in 3 years

19:16, May 07, 2010      

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Japanese electronics maker Panasonic Corp. announced Friday that it forecasted a return to the black in fiscal 2010 for the first time in 3 years as it expands sales of flat screen TVs and cuts costs to cope with a resurgent yen and tough competition from competitors in Asia.

The maker of Viera TVs and Lumix digital cameras said robust demand from emerging countries will boost earnings and help the firm hit its target of a net profit of 50 billion yen (542.35 million U.S. dollars) for the current financial year through next March.

The company also said that it expected operating profit to total 250 billion yen (2.75 billion U.S. dollars) in the year to March 2011, up 31 percent from a year earlier, but just shy of market expectations.

Additionally the electronics maker projected sales will rise 18. 6 percent to 8.8 trillion yen (95.45 billion U.S dollars).

For fiscal 2009, Panasonic logged a net loss of 103.47 billion yen (1.12 billion U.S. dollars) down from losses in 2008 totaling 378.96 billion yen (4.11 billion U.S. dollars)

According to the firm's financial reports, its operating profit surged 161.3 percent from the previous year to 190.45 billion yen (2.06 billion U.S. dollars) on sales of 7.42 trillion yen (80.48 billion U.S. dollars), a drop of 4.5 percent.

Panasonic, the world's top maker of plasma screens and No. 4 maker of LCD TVs behind Samsung Electronics, Sony and LG Electronics, said its earnings had also received a boost from Sanyo Electric, which it made a subsidiary last year.

Speaking at a news conference in Tokyo, Hideaki Kawai, Panasonic executive officer said that price declines in regular TVs will be countered by the launch of its higher-priced three- dimensional TVs.

"Emerging countries are expanding faster than expected so we anticipate an overall steady though moderate economic recovery," Kawai said, adding that TV sales increased with the government's introduction of the "eco-point" system which encourages customers to buy environmentally friendly electrical appliances as the points collected can be saved and cashed in on future purchases.

Source: Xinhua


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