Panasonic Consumer Products reported sales fell 2% and operating profit fell 60% due to weak demand for consumer electronics and appliances. Demand for entertainment and communications products and rugged laptops increased, in part due to improved sourcing of parts and materials initially affected by COVID 19 delays.
Although Panasonic dominates the electric vehicle battery market, the company has lowered its full-year profit forecast for the battery unit as demand for Tesla electric vehicles in the North American market slowed, sales prices fell sharply and maintenance costs were significantly higher than for other vehicles. Panasonic has cut production of Tesla batteries in Japan in response to inventory issues. Panasonic also mentioned its HVAC business in Europe, where it expects a recovery in demand due to European greenhouse gas emission reduction policies.
Despite challenges in the consumer segment, Panasonic’s sales growth in the automotive and connected industries and improvements in financial revenue and expenses helped keep sales stable and boost adjusted operating profit and net profit.bottom of form
(Source: channelnews Image source: freepik)
