Panasonic Corp - ADR

Financial Performance Overview: Panasonic reported Q3 results showing a year-on-year (YOY) increase in sales and profit, excluding automotive. Total sales decreased by 1% to JPY 2,152.6 billion, but when excluding automotive, sales rose by 5%. Adjusted operating profit (AOP) increased to JPY 150.2 billion, while operating profit was up to JPY 132.3 billion. Net profit declined to JPY 99.5 billion, primarily due to an increase in income taxes.

Automotive Deconsolidation Impact: The recent completion of the share transfer of Panasonic Automotive Systems (PAS) resulted in PAS being excluded from consolidated figures, impacting overall sales negatively. The full-year sales forecast has been revised downward by JPY 300 billion, whereas the profit forecast remains unchanged. The automotive segment is seen as a challenge due to this deconsolidation.

Industry and Energy Segment Growth: The Industry and Energy segments continue to perform well, with upward revisions in profit forecasts driven by strong sales in generative AI-related products and increased customer demand for energy storage systems. The company projects high growth in generative AI businesses to continue through the full fiscal year.