The Low Post News

Panasonic Earns Profit on Weak Yen

Panasonic has returned to a profit following big losses for the last two fiscal years, as the yen was weaker and efforts of restructuring helped with the gradual recovery. The company also forecast an increase of 16% in profits for this coming year.

Like other electronics companies in Japan, Panasonic Corp has struggled amidst intense competition from the likes of Samsung Electronics and Apple. Prices of electronic gadgets have fallen, which has added to the woes of Panasonic.

The electronics maker of the Evolta batteries and Lumix camera is based in Osaka. It reported a profit of 120.4 billion yen or $1.2 billion on Monday, for its fiscal year through the end of March of 2014. This was compared to a loss of 754 billion yen in the same reporting period one year ago.

For its fiscal year that ends at the end of March of 2015, the company has projected profits to reach 140 billion yen or $1.4 billion.

The company lost in its fiscal year through the end of March of 2012 772 billion yen, one of the largest losses every suffered by a company in Japan.

Panasonic was in the red for the quarter January through March with over $1.2 billion in losses, but was able to return to the black for the entire year. Sales during the quarter were up by 10% to $20 billion

Sales for the entire fiscal year ending March of 2014 were up 6% to $75.85 billion, with sales improving over a number of different sectors that included auto parts, appliances and ecological products like lighting.

A boon for exporters in Japan is a weak yen as it boosts the value of earnings overseas. The downside is that the positive impact from the exchange rates that are favorable is not likely to continue over the upcoming months.

Panasonic expects sales to remain flat during the fiscal year that ends in March of 2015.

The electronics company has been a rival for many years of Sony Corp, but has suffered as well due to losing out in the smartphone segment. However, it has worked on its ambitions to grow its newer housing and auto businesses.

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