Panasonic Corporation, Japan announced sales amounting to 8.7 trillion Yen (Euro 72 billion) for the fiscal year that ended March 31, 2011a plus of 17 percent compared to the previous year.
According to Panasonic, the growth was mainly due to the inclusion of Sanyo Electric Co. Ltd.’s sales, and its subsidiaries in the company’s consolidated financial results from January 2010 onwards.
Despite the tough price competition, appreciation of the Yen and rising material costs, along with the loss of production and subdued demand due to the Japan earthquake, Panasonic’s operating profit improved by 60 percent to Yen 305.3 billion (Euro 2.53 billion), resulting in a net income of Yen 74 billion (Euro 613 million), compared with the loss of Yen 103.5 billion (Euro 857 million) incurred a year ago. Sales in Panasonic’s Digital AVC Networks business reached Yen 3.304 trillion (Euro 27.4 billion), down 3 percent from the previous year. This is attributed to the reduction in sales of mobile phones and digital cameras, partially offset by favorable sales of Blu-Ray disk recorders. Operating profit in the business increased 32 percent to Yen 115 billion (Euro 952 million), mainly due to successful cost reduction measures and streamlining efforts.
Panasonic along with this announced a drastic group-wide reorganization. The current five business segments of the company will be converted into three business sectors: Consumer (AVC Networks and Heating/Refrigeration/Air Conditioning & Home Appliances), Components and Devices, and Solution
