Japanese consumer electronics giant Panasonic Corp. (PC) Friday reported a narrower loss for fiscal year 2013 while recording operating profit, that climbed due to extensive fixed cost reduction. The company expects to report a net profit in fiscal 2014, and a significantly higher operating profit.
According to the company, business environment for Japanese companies improved due to factors including depreciating yen against U.S. Dollar and Euro, meanwhile, electronics industry experienced sluggish demand in flat-panel TVs mainly in Japan.
For the fiscal year ended March 31, 2013, net loss attributable to the company narrowed to 754.3 billion yen from 772.2 billion yen in the previous year.
Pre-tax loss narrowed to 398.4 billion yen from the previous year's 812.8 billion yen. The company said its results reflected mainly business restructuring expense of 508.8 billion yen including impairment losses of goodwill and intangible assets, and losses related to buildings.
Operating profit jumped to 160.9 billion yen from 43.7 billion yen in the prior year as a result of extensive fixed cost reduction.
Consolidated group sales for the fiscal decreased 7 percent to 7.30 trillion yen from 7.85 trillion yen in the preceding year. Domestic sales dropped 9 percent to 3.79 trillion yen, and overseas sales were 3.51 trillion yen, down 5 percent from the preceding year.
In AVC Networks, sales fell 20 percent to 1.37 trillion yen, mainly due to sales decline in digital AV networks business, including TVs and display devices business.
Meanwhile, Appliances sales edged up 1 percent to 1.55 trillion yen. Sales declined 12 percent in Systems & Communications to 740.9 billion yen and in Automotive Systems, sales climbed 20 percent to 782.9 billion yen. Industrial Devices sales slid 3 percent to 1.36 trillion yen.
The company said it would not distribute any year-end dividend, thus paying no dividend throughout fiscal 2013, as announced earlier in October.
Looking ahead to fiscal 2014, Panasonic expects net income attributable to the company of 50.00 billion yen, on sales of 7.20 trillion yen, which is a decline of 1 percent from fiscal 2013.
Operating profit is expected to be 250.0 billion yen, up 55 percent from last year.
The stock closed down 1.63 percent on Thursday at 722 yen.
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