Panasonic Posts Higher Profit In Q3; Backs FY14 Forecast - Update

(RTTNews) - Japanese consumer electronics giant Panasonic Corp. (PCRFY.PK) reported Tuesday a higher profit in its third quarter, benefited by increased sales. Further, the company backed its forecast for fiscal 2014. Panasonic shares declined around 7 percent in Tokyo trading.

The third-quarter net income attributable to company amounted to 73.7 billion yen, compared to 61.4 billion yen a year ago. Pre-tax income surged to 99.6 billion yen from 9.3 billion yen, last year.

Group sales increased 10 percent to 1.97 trillion yen from 1.80 trillion yen last year, benefited by Yen depreciation. In the quarter, domestic sales grew 6 percent to 970.3 billion yen, while overseas sales increased 13 percent to 1 trillion yen.

The company noted that sales of automotive related business increased with global market recovery. Sales of housing related business was benefited by stable demand of new housing construction in Japan.

Meanwhile, digital consumer products' sales decreased while focusing on profitability rather than sales volume, the company noted.

Operating profit surged from last year with significant profit improvement of unprofitable businesses.

Looking ahead, the company said its business performance forecast for fiscal 2014 remains unchanged. In October, the company had lifted its annual forecast, and expects fiscal 2014 expects net income attributable to the company of 43.26 yen per share, and sales of 7.40 trillion yen.

In Tokyo, Panasonic shares closed Tuesday's trading at 1,061 yen, down 78 yen or 6.85 percent.