Panasonic cuts profit view on strong yen
JAPAN’S Panasonic has cut its annual profit and revenue forecasts, blaming the impact of a strong yen and a poor showing in its solar panel business.
The firm – which has been undergoing a huge restructuring after record losses – said it now expects net profit to come at 120 billion yen (US$1.1 billion) for the fiscal year through March, down 17 percent from an earlier projection. It also cut a revenue target again, saying full-year sales would come in at 7.2 trillion yen, down 5pc from the earlier projection.
Panasonic and other major Japanese firms doing business abroad have been stung by a sharp rally in the yen, which shrinks the value of their repatriated profits. For its fiscal year first half, Panasonic said it had a net profit of 119.9 billion yen, up 7.7pc from a year earlier thanks mainly to one-off gains.
Operating profit tumbled by more than a quarter while revenue was off 7pc at 3.5 trillion yen.
The decline was partly due to weaker demand for household solar energy systems, Panasonic said. –