Panasonic's operating profit for the first quarter increased 6.9 times compared with last year and net income swung back to black--due to fixed cost reductions and the streamlining of material costs.
In a statement Tuesday, the Japanese electronics released its financial results for the three months ended June. The company's operating profit increased to 38.6 billion yen (US$492.9 million) from 5.6 billion yen (US$71.5 million) a year ago, it said.
Its pre-tax income and net income returned to positive territory from a loss of 17.4 billion yen (US$222.2 million) and a loss of 30.4 billion yen (US$388.2 million) respectively a year ago to reach 37.8 billion yen (US$482.7 million) and 12.8 billion yen (US$163.5 million) this quarter.
The Japanese tech company attributed the positive results to savings from fixed cost reductions and the streamlining of material costs despite the.
Panasonic reported a decline of 6 percent in consolidated group sales to 1.81 trillion yen (US$23.2 billion) from 1.93 trillion yen (US$24.6 billion) which was attributed to the weak demand for audio-visual (AV) products in Japan.
Despite the decline in sales, Panasonic said its May 11, 2012. The company had predicted a 495 percent increase in operating profit to 260 billion yen (US$3.3 billion) compared to the fiscal year 2013 while sales were forecasted to reach 8.1 trillion yen (US$103.4 billion), a 3 percent year-on-year jump.for the fiscal year 2013 remains the same as the one announced on
The company also forecasted pre-tax income of 160 billion yen (US$2 billion) and net income of 50 billion yen (US$638.5 million) for the fiscal year 2013, unchanged from fiscal year 2012.