Panasonic reports profits back in the black

Panasonic has reported a net profit of £421 million for the October-December period, compared with a £131 million loss a year earlier.Panasonic reports profits back in the blackPanasonic, which kept its forecast for a full-year loss unchanged, said a weak yen had improved business conditions.

The Japanese currency has dipped more than 15% against the US dollar since November last year.

A weak yen boosts profits of Japanese exporters such as Panasonic when they repatriate their foreign earnings back home. It also makes Japanese goods more affordable to foreign buyers.

The firm has said it expects to make a net loss of 510 million for the financial year to 31 March 2013.

Panasonic has seen its fortunes slide in recent years amid a slowdown in global demand and falling prices for TVs.

To make matters worse, it has also had to face strong competition from rivals, including South Korea’s Samsung which has grabbed a big share of the global TV market.

In its latest results, Panasonic said that global demand for flat-panel TVs and digital devices had weakened further.

It said its overall sales in the last quarter fell 8% on the year to £1.2 billion.

For its part, Panasonic has been trying to restructure its business. But it has previously warned that the costs related to such moves may be almost 11 times more than previously estimated.

March 12, 2013  Tags: , , , , ,   Posted in: Business Profits, Business Win, Digital Business, Global Business, Growing Profits, Technological Businesses, Uncategorized

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