Tokyo, February 5 -- Japanese tech giant Panasonic recorded a surge in its net profit for the third quarter. The Osaka, Japan-based firm showed a net profit of 32.3 billion yen ($361 million) as against $63.1 billion yen loss for last year.
Panasonic’s overseas sales rose by 3 percent to 887.1 billion yen, while domestic sales rose from 1.88 trillion yen to 1.89 trillion yen compared to a year earlier.
The company said its third-quarter earnings were mostly helped by “comprehensive streamlining of management.”
However, the company’s revenue fell by 16 percent.
Operating profit forecast increases
Overall, the year 2009 was good for the Japanese maker. Panasonic had a net loss of 14.6 billion yen for the first nine months till Dec. 2009. However, its revenue was $5.2 trillion yen.
The company’s operating profit forecast also increased to 150 billion yen ($1.68 billion) as against 120 billion yen.
Analyst Yuji Fujimori at Barclays Capital, Tokyo said, “The forecast upgrade, while I think it may be a little conservative, is still pretty much in line with the consensus.”
Market for consumer electronics ‘still difficult’
However, despite the increase in profits the company still thinks the market for consumer electronics is difficult.
“Although the global economy seems to be on the way to recovery, severe business condition continues with the appreciation of the yen and ever-intensifying global price competition,” the company said.
“In the electronics industry during the third quarter, despite visible signs of market recovery in such regions as China and Asia, severe business conditions continued,” said the company, referring to a shift in lower-priced products.
Panasonic, based in Japan, is the maker of both electronic and non-electronic products. It is the world's fourth-largest flat TV maker behind Samsung Electronics, LG Electronics and Sony Corp.
The company sells plasma, LCD display panels, DVD recorders along with telephones, ovens, vacuum cleaners etc. It markets its products under the slogan ‘Ideas for Life.’
Shares of Panasonic closed 3.1 percent down on Friday. Over the past three months, Panasonic shares have gained 13.2 percent, surpassing a 7 percent rise in the sub index of Tokyo.