Panasonic keeps profit outlook flat amid price rises, shortages
17:05 JST, May 11, 2022
TOKYO (Reuters) – Panasonic Corp said on Wednesday it expected operating profit growth to be flat this business year as component shortages and rising material costs continued to pose a risk to earnings.
The Japanese company forecast operating profit of 360 billion yen for the year to March 31, 2023, little changed from the 357 billion it made in the previous business year.
That prediction is 5.9% lower than a mean 382.7 billion yen profit based on forecasts from 20 analysts, Refinitiv data shows.
Panasonic makes products ranging from washing machines to industrial machinery.
Like others, it has been hurt by materials prices that shot higher after Russia’s invasion of Ukraine. Chief Executive Officer Yuki Kusumi said last month the company could not pass all of the price rises on to customers.
It has also been tackling continued shortages of components caused by the COVID-19 pandemic, with strict lockdowns in China spurring concerns of fresh supply chain disruptions.
For its Energy unit, which makes automobile batteries for Tesla Inc, it expects electric vehicle demand to grow and will try to mitigate the higher cost of metals, including lithium, nickel and cobalt, through “price revisions” and “rationalization.” It did not elaborate on that point.
Panasonic also noted risks of suppliers’ factory lockdowns due to COVID-19 and the international situation.
Panasonic supplies batteries to Tesla along with China’s Contemporary Amperex Technology Co Ltd and South Korea’s LG Energy Solution. It plans to build a mega-factory in the United States to build a new and more advanced battery for Tesla, Japanese public broadcaster NHK reported in March.
The battery, of 4680 format (46 millimeters wide and 80 millimeters tall), is about five times bigger than those that Panasonic currently supplies, meaning Tesla should be able to lower production costs and improve vehicle range.
In the three months to March 31 Panasonic posted operating profit of 83.3 billion yen, compared with a profit of 31.8 billion yen a year earlier. That result was worse than an estimated mean of 85.5 billion yen profit from nine analysts surveyed by Refinitiv.
"Business" POPULAR ARTICLE
-
Aviation Fuel Shortage Causes Problems at Regional Airports; Growing Demand, Lack of Workers to Transport
-
Prices of over 10,000 Food and Beverage Items to Rise This Year; Figure is down from over 30,000 Last Year
-
Sony Group to End Production of Blu-ray Discs; Market Has Shrunk Due To Growth Of Hard Disk Drives, Streaming
-
AI-Equipped Energy Efficient Air Conditioners Grow In Popularity; Some Can Guess Users’ Moods, Automatically Adjust Temperature
-
Toyota to Introduce 4-Day Workweek for Some Employees; Company Hopes More Flexible Schedules Will Boost Worker Motivation
JN ACCESS RANKING
- Aviation Fuel Shortage Causes Problems at Regional Airports; Growing Demand, Lack of Workers to Transport
- Prices of over 10,000 Food and Beverage Items to Rise This Year; Figure is down from over 30,000 Last Year
- Sony Group to End Production of Blu-ray Discs; Market Has Shrunk Due To Growth Of Hard Disk Drives, Streaming
- Japan Ministry Concerned Over Same-Sex Couple Receiving City-Issued Resident Certificates Referring to ‘Common-Law Husband’
- Japan Court OKs Sex Change without Surgery