Panasonic revises upward operating profit projection for FY 2009+

OSAKA, Oct. 30 Kyodo -
Panasonic Corp. on Friday revised its group operating profit projection for
fiscal 2009 sharply upward to 120 billion yen from an earlier-forecast 75
billion yen, citing consumer demand rebounds in Japan and China and the effects
of fixed-cost cutbacks.
The fresh operating profit estimate for the business year to next March 31
would mark a surge of 64.7 percent from the preceding business year, the Osaka
Prefecture-based consumer electronics maker said.
It traced the upsurge partly to rebounds in Japanese and Chinese demand for
flat-panel televisions and so-called ''white goods'' appliances such as
refrigerators and washers that have partly stemmed from the fiscal stimulus
steps the two countries have implemented.
The company also logged an operating profit of 28.86 billion yen in the
April-September fiscal half, a sharp positive turnaround from an
earlier-forecast loss of 20 billion yen.
The approximately 48 billion yen first-half improvement in the operating
balance is roughly the size of the projected improvement in the balance for the
whole of fiscal 2009.
But Panasonic President Fumio Otsubo told a news conference in Tokyo, ''Sales
of flat-panel TVs and digital cameras did not grow as much as we had
anticipated in the European and U.S. markets. It remains unknown whether we
will be able to secure a good earnings performance in the second half.''
Group sales in the six months to Sept. 30 dived 23.3 percent to 3.33 trillion
yen. The period's net loss was limited to 46.8 billion yen against an earlier
forecast loss of 100 billion yen.
Sales and profits in the July-September quarter expanded from the April-June
period for almost all product sectors except for air conditioners and cell
phones, it said.
While the company pledged to seek to slash fixed costs such as personnel
expenses by 260 billion yen in all of the current business year, it completed
more than 80 percent of the avowed cutbacks during the first half.
The company also trimmed its net loss estimate for the 12-month period to 140
billion yen from the earlier forecast 195 billion yen.
The new estimate represents an improvement from the previous business year's
net loss of 378.96 billion yen. In fiscal 2008, Panasonic booked its first net
loss in six years.
Still, Panasonic said it kept its sales projection unchanged at 7 trillion yen
because economies in the European Union and other developed countries have not
waged strong rebounds.
Meanwhile, Otsubo told reporters Panasonic plans to increase its combined
annual production capacity for flat-panel TVs -- plasma panel and liquid
crystal display TVs -- to 30 million units by fiscal 2012 from the 14.5 million
units it will produce during the current business year.
Plasma panel TVs will account for 10 million units of the planned total, and
LCD TVs will account for the remainder, he said.
Panasonic plans to kick off expanded production at the plasma TV factory in
Amagasaki, Hyogo Prefecture, in November and at the LCD TV factory in Himeji in
the same prefecture next July.
==Kyodo
2009-10-30 23:36:50