Panasonic Corp. reported on Thursday that it suffered a net loss of 9.83 billion yen (93.56 million U.S. dollars) in the April-June quarter, due to the effects of the coronavirus pandemic seeing declining sales across a broad range of the firm’s offerings.
The Osaka-based multinational electronics company said its net loss marked its first red ink for the period in nine years, with the loss coming on the heels of 49.78 billion yen in profit logged a year earlier.
Panasonic said a decline in commercial airline operations during the pandemic saw demand for the firm’s inflight entertainment systems tumble, among other aviation-linked components.
In terms of the firm’s overseas sales, contributing to the overall net loss in the recording period, it said sales of TVs and air conditioners slumped amid waning consumption and pandemic-linked supply chain disruptions.
Panasonic projects its net profit to drop 55.7 percent to 100 billion yen and operating profit to drop 48.9 percent to 150 billion yen for the full year ending next March, it said, with sales expected to drop 13.2 percent to 6.5 trillion yen.
The adverse effects of the coronavirus pandemic are expected to slowly improve from the second half of the current fiscal year through March, Panasonic said.
But segments of its business, spanning aircraft equipment, building and home fixtures and automobile parts are likely to remain weak in the period, the company said.
“For June, sales have returned to 91 percent of the year-earlier level, led by robust recovery in demand in China and Japan, but market situations in Europe and North America still remain severe,” Chief Financial Officer Hirokazu Umeda said.
“We need to rigorously implement structural reforms to reduce fixed costs as we seek to eradicate money-losing segments such as solar and TV operations,” he added.
Umeda went on to say that the firm would continue to invest in areas where new growth opportunities exist because of the pandemic.
Such areas, he said, included Japan-based sales of air conditioners and computers amid an increase in people working from home amid the pandemic. (1 U.S. dollar equals 105.11 yen) Enditem.-Xinhuanet