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Auto Industry Helps Panasonic Increase Profits By 50%
29.04.2021 [14:08],
Sergey Yurtaykin

Panasonic’s annual profits jump by almost half thanks to Japanese firm’s success in the automotive electronics market.

According to the results of the 12-month reporting period, closed on March 31, 2021, Panasonic’s net profit amounted to 179.49 billion yen ($ 1.5 billion), which is 49% more than a year earlier. Operating income increased 25% over this period to 381.91 billion yen ($ 3.21 billion). Revenue reached 7.72 trillion yen ($ 64.9 billion), down 0.3% year on year.

bloomberg.com

Auto industry has become one of the main stimulators of Panasonic’s financial growth. The corresponding division of the company recorded an increase in annual operating income by 53% to 105.7 billion yen ($ 883 million).

Panasonic manufactures various components for vehicles including navigation systems, parking sensors, cameras and batteries. The latter are used in electric cars Toyota and Tesla Motors.

Panasonic notes that in the past fiscal year, the company saw strong demand for its automotive products in North America and Europe, which helped to compensate for the drop in sales in unprofitable divisions.

bloomberg.com

Panasonic expects net profit of 180 billion yen ($ 1.5 billion) on revenue of 8 trillion yen ($ 67.3 billion) for the current fiscal year, which will last until the end of March 2021. The company promises to spend 1 trillion yen ($ 8.4 billion) to buy third-party assets in the next four years.

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