Mobile market sees Matsushita boost profits

Matsushita has boosted profits by 51 per cent to almost $500m, driven by demand for mobile phones and the computer industry's general shortage of components.

The firm's end-of-year results show total sales up only four per cent to $34.4bn. Japan's leading consumer goods company, hit by price-cutting for televisions and audio kit, is now reliant on its industrial products division, which makes mobile phones, PCs and factory automation systems. Profits in this area were up 26 per cent and operating profits for its components division doubled. In contrast the consumer division, once Matsushita's powerhouse, only just struggled into profit in the second half. The company has been shifting production out of Japan into low-cost regions in south-east Asia and Eastern Europe.