Matsushita Electric Industrial Co, the world's biggest consumer-electronics maker, posted a third consecutive quarterly profit on job cuts and increased sales of video cameras and DVD recorders.
The maker of the Panasonic, Technics and National brands posted group net income of ¥20.9 billion (US$176 million), or Y8.65 a share, in the three months ended Dec. 31, compared with a ¥172 billion loss, or ¥82.74, in the year-ago period. Sales rose 8 percent to ¥1.87 trillion.
Third-quarter gains were the result of cost savings after the company cut 2,500 jobs worldwide in the period and higher sales of newer products such as DVD players and digital cameras, which typically have higher margins, the company said. Matsushita raised its annual sales forecast by 3.5 percent to ¥7.3 trillion.
"Matsushita is ahead of its competitors in terms of restructuring and sales growth," said Hisako Furuta, who helps manage ¥4.5 billion at ING Mutual Funds Management Co, and holds the company's shares. Still, "there are concerns that growth momentum is going to slow down."
Matsushita, which posted a record loss last fiscal year, has vowed to revamp or close unprofitable businesses, concentrate on products with the greatest potential for growth and boost sales.
Citing investment losses and costs related to shuttering overseas units, the company cut its annual net income forecast by about a third to ¥25 billion.
Matsushita Electric's shares rose ¥8, or 0.7 percent, to 1,168 at the 3pm close on the Tokyo Stock Exchange yesterday ahead of the release of third-quarter earnings. The shares have declined 23 percent the past six months, compared with an 11 percent drop for Sony Corp, Matsushita's next-biggest rival.
Led by its president, Kunio Nakamura, the company has closed plants in places such as Shikoku Prefecture in southern Japan and offered financial incentives to entice workers to quit.
Nakamura has pledged to boost the company's operating profit -- the amount left over after production and administrative expenses are subtracted from sales -- to ¥100 billion, or more, in the year ending March 31.
For the third quarter, Matsushita's industrial equipment division had an operating loss of ¥6.7 billion. Operating profits were posted at its appliances, electronic devices and audio-visual divisions.
In the six months ended Sept. 31, Matsushita posted group operating profit of ¥45.4 billion. In the quarter ended Dec. 31, Matsushita posted a group operating profit of ¥42.8 billion.
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