Japan's Panasonic Corporation said today that its interim profit grew through cost cuts and brisk sales of consumer electronics, more than offsetting a stronger yen which has hit other Japanese companies hard.
Group net profit at Panasonic, which changed its corporate name from Matsushita Electric Industrial on October 1, came to 128.49 billion yen ($1.35 billion) in the six months to September.
This represents a 22% rise from the year-before figure, which included earnings of now spun-off Victor Co of Japan. Operating profit expanded 4% to 228.15 billion yen while sales slipped 4% to 4.34 trillion yen.
'Despite the negative effects of intensified global price competition and a stronger yen against the US dollar, as well as rising prices for crude oil and other raw materials, this result was due primarily to comprehensive cost reduction activities,' the company said.
Sales also grew in real terms excluding specific factors such as the effects of JVC, which was dropped from Panasonic's consolidated results from August 2007. JVC has merged with fellow high-tech firm Kenwood.
Panasonic said sales were brisk for flat-panel televisions and DVD recorders.
It left earnings forecasts unchanged for the full year to March 2009. It said it would review the figures after seeing third-quarter results amid the 'uncertain' business climate.
