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Panasonic Profit Dips as EV Market Cools
4 Feb
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 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.
Despite the current challenges, Panasonic foresees a gradual recovery in the North American EV market starting after the previous quarter's low point. The company also plans to establish a second plant in Mexico dedicated to producing data center battery modules, signaling a continued strategic focus on this sector.
