Panasonic's operating profits rise as sales continue to fall

10 May 2013

Panasonic TX-P55VT65B

Cost cutting at Panasonic has led to a 268% rise in operating profits to ¥160.9bn (£1.03bn) for the financial year to March 31st 2013, up from ¥43.7bn (£0.28bn) the previous year. Pre-tax losses fell from ¥812.8bn (£5.21bn) in 2012 to ¥398.4bn (£2.55bn) in 2013, and included restructuring costs of ¥508.8bn (£3.26bn).

The improved financial performance came despite a fall in sales. Consolidated group sales were down 7 per cent to ¥7,303bn (£46.82bn), with domestic sales in Japan dropping 9 per cent and overseas sales down by 5 per cent.

Although helped by the yen depreciating against the dollar and euro, and a recovery in the US stock market, Panasonic says demand for flat-panel TVs, especially in Japan, remains "sluggish".

"Sales significantly decreased, due mainly to a decline in the digital AV networks business including TVs," says Panasonic.

MORE: Read our Pansonic TX-P55VT65B review

MORE: Read our Panasonic TX-L55WT65B review

The company predicts its operating profit for the next year will rise by 55 per cent to ¥250bn (£1.6bn) as it continues its New Midterm Management restructuring plan and pulls back from its reliance on its struggling TV operation.

Last month Panasonic's boss Kazuhiro Tsuga and incoming chairman Shusaka Nagae announced they would take a salary cut of 60 per cent each.

Tsuga has already wielded the axe at Panasonic's corporate HQ, cutting the staffing from 7000 to just 130, and says that in future the company will earn money first before making investments such as the ¥600bn (£4bn) it has invested in plasma over the years.

By Andy Clough

 

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Comments

The various reviews Panasonic receives online and in magazines are all obsessed with black performance. This makes for great advertising for the brand.

As Alantigger points out other problems surfaced and Panasonic service has been anything but great in resolving problems for customers, whether it be 50hz issues,floating blacks, green blobs or brightness flux.

If a company wants increased sales it needs to procur brand loyalty so that repeat business happens. YOU don't achieve this when you annoy customers in the enthusiast or wider public market!

I wish Kazuhiro Tsuga would take a keen look at management in UK and Europe because they have failed to deliver outstanding customer service over recent years.>:-(

 

 

 

 

I think the main thing Panasonic should have been doing over the past few years was, instead of creating TV's which gave great looking 'blacks' was to ensure that the self same TV's did not cause so many problems to the consumer as with green blobs etc.

Their TV's cost a lot of money yet so many folk had so many problems with them ?

Looking at other manufacturers TV's you wonder what it IS that makes Panasonic's TV's so much 'blacker'... as you do not see it ?  (sure an electronic gizmo might but not the human eye).