Why did Panasonic's energy unit profit decrease?

Panasonic's energy unit profit decreased due to a weaker performance in the North American market, which impacted electric vehicle battery sales.

What is Panasonic's updated full-year profit forecast?

Panasonic has lowered its full-year operating profit forecast by 9.4% to 290 billion yen.

What factors contributed to Panasonic's quarterly loss?

Panasonic's quarterly operating loss was primarily caused by restructuring costs and a write-down linked to the planned divestment of its Spanish automotive parts unit.

Home / Business and Economy / Panasonic Profit Dips as EV Market Cools

Panasonic Profit Dips as EV Market Cools

4 Feb

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Summary

Panasonic's energy unit profit fell 3.5% due to North American weakness.
Company slashed its full-year operating profit forecast by 9.4%.
A planned divestment and restructuring costs led to a quarterly loss.

Panasonic Profit Dips as EV Market Cools

Panasonic Holdings' energy division, a key supplier of Tesla batteries, experienced a 3.5% decrease in third-quarter operating profit compared to the previous year. This downturn was principally driven by a sluggish performance in the North American market, which offset increased demand for energy storage systems essential for data centers.

Consequently, Panasonic has reduced its overall full-year operating profit forecast by 9.4%, projecting 290 billion yen instead of the previously anticipated 320 billion yen. The company incurred a 7.2-billion-yen operating loss for the October-December quarter, marking its first quarterly deficit in almost a decade. This loss is largely attributed to significant restructuring costs and a write-down related to the impending sale of its Spanish automotive parts subsidiary, Ficosa.

The company has adjusted its automotive battery sales volume forecast for the fiscal year ending in March to 39 gigawatt hours, a decrease from its prior outlook. This revision reflects a more pronounced slowdown in the North American electric vehicle market than initially expected. Panasonic is exploring options, including potentially converting some production capacity at its Kansas plant to focus on batteries for data center applications.