Panasonic Swings To Profit In Q2; Ups FY14 Forecast - Quick Facts

(RTTNews) - Japanese consumer electronics giant Panasonic Corp. (PC) said it has earned 61.5 billion yen of net profit attributable to the company in the second quarter, as against the prior-year loss of 698.0 billion yen, rebounding from fiscal 2013 when the increase in valuation allowances to deferred tax assests was recognized. For the quarter, the firm recorded pre-tax income of 84.8 billion yen, versus a 316.5 billion yen loss last year.

Three-month consolidated group sales went up 3% year-over-year to 1.88 trillion yen, from 1.82 trillion yen. Sales of digital consumer products, including flat-panel TVs, dropped with severe global competition and weak demand. Also, focusing on profitability rather than sales colume was another factor for lower sales. Domestic sales slid 4% to 922.4 billion yen, while overseas sales improved 11% to 959.4 billion yen from the preceding year.

For fiscal 2014, the company now expects net income attributable to the company of 43.26 yen per share, versus its prior estimate of 21.63 yen per share. Also, full-year original sales target of 7.20 trillion yen is now revised upward to 7.40 trillion yen, mainly due to positive effect of yen depriciation and sales growth expected in stable housing & automotive businesses, despite a fall in sales in digital consumer related business.