Panasonic forecasts operating profit jump

TOKYO: Panasonic Corp expects operating profit to jump by almost a third this business year as economic recovery from coronavirus lockdowns spurs demand for equipment and components, including automotive bateries used by Tesla, the company said on Monday.

The Japanese maker of items from bicycles to hair dryers is looking to tap growing demand for electric car bateries in key markets such as the United States and China through a decadeold partnership with Tesla Inc that is finally making money.

Panasonic this business year expects its automotive unit to post 50 billion yen in operating profit, the company’s CFO Hirokazu Umeda told a press briefing.

“The automotive bateries, which are nearly all Tesla account for around 40 per cent,” Umeda said.

Panasonic forecast overall operating profit to rise 27.6 per cent to 330 billion yen ($3 billion). The figure is slightly higher than an average forecast of 327.56 billion based on estimates from 16 analysts, Refinitiv data shows.

Panasonic this business year, will also begin a test line in Japan to make large cylindrical 4680 format batery cells, Umeda added.

Tesla says that format, which is 46 millimetres wide and 80 millimetres tall, will store more energy, halve batery costs and help ramp up batery production 100-fold by 2030.

The Japanese company is also investing heavily in new production chain management services as companies strengthen supply chains following pandemic disruptions.