Panasonic Corporation has just released its global consolidated financial results for the first quarter 2009; despite sizable losses across the board the company is confident in its prospects for the future.
According to its financial results up until 30 June 2009, consolidated group sales for the first quarter decreased 26 per cent to 1,595.5 billion yen, from 2,152 billion yen in the same quarter a year ago. Domestic sales amounted to 858.8 billion yen, down 18 per cent from 1,045.2 billion yen a year ago. Overseas sales decreased 33 per cent to 736.7 billion yen, from 1,106.8 billion yen the previous year.
The company reasoned the loss on the global recession and lower demand.
“Despite visible signs of market stabilisation, severe business conditions continued as the global recession and shrinking demand coincide with changes in the market structure including a demand shift to emerging markets and lower-priced products,” said Panasonic in a statement.
Regarding its earnings, operating loss for the first quarter was 20.2 billion yen, which was down from 109.6 billion yen operating profit in the same period a year ago.
This result was attributed to the effect of a sharp sales decrease and price decline, although the company implemented thorough streamlining of material cost and fixed cost reduction.
The company also incurred 21.6 billion yen as expenses associated with the implementation of early retirement programs.
With these factors included the company incurred a pre-tax loss of 51.8 billion yen. Accordingly, net income turned to a loss of 53 billion yen.
But despite these losses Panasonic was confident that it will perform stronger in the future.
“The company expects an overall sales increase due mainly to the market recovery of general electronic components and the effects of economic stimulus measures.”
In regards to its consolidated results forecast for the six months ending 30 September 2009, the company revised its previous sales forecast of 3,260 billion yen upward to 3,300 billion yen.
Operating loss is expected to be 20 billion yen, an improvement of 85 billion yen compared to the previous forecast of 105 million yen.
Loss before income taxes is forecast to be 90 billion yen, improved from the previously announced 195 billion yen and the net loss attributable to the company is now expected to be improved from the previous forecast of 195 billion yen to 100 billion yen.