|By Business Wire||
|July 31, 2014 08:05 AM EDT||
Panasonic Corporation (Panasonic [TOKYO:6752]) today reported its consolidated financial results for the first quarter, ended June 30, 2014, of the current fiscal year ending March 31, 2015 (fiscal 2015).
Consolidated First-quarter Results
Consolidated group sales for the first quarter increased by 2% to 1,852.3 billion yen compared with 1,824.5 billion yen for the first quarter of the year ended March 31, 2014 (fiscal 2014). Yen depreciation contributed to sales increase. Demand in Japan overall decreased mainly in consumer electronics products following demand surge before the consumption tax hike in April. Meantime, this negative effect was mostly offset due mainly to the effect of demand surge before the tax hike remaining in the first quarter for some products. Automotive-related business grew in sales with stable demand globally. Of the consolidated group total, domestic sales amounted to 857.4 billion yen, down by 1% from 864.9 billion yen a year ago. Overseas sales increased by 4% to 994.9 billion yen from 959.6 billion yen a year ago.
During the first quarter under review, despite economic slowdown in China and ASEAN countries, the global economy moderately recovered as a whole due mainly to recovery from low demand after consumption tax hike in Japan and continuous economic recovery in Europe and the U.S.
Under such business circumstances, in fiscal 2015, the second year of the mid-term management plan “Cross-Value Innovation 2015 (CV2015),” Panasonic has been promoting the initiatives to consolidate a foundation to achieve CV2015 and set growth strategy for a ‘New Panasonic’ in fiscal 2019.
Operating profit* increased by 28% to 82.3 billion yen from 64.2 billion yen a year ago, due mainly to fixed cost reduction and sales increase in real term excluding business transfers executed a year ago. Pre-tax income and net income attributable to Panasonic Corporation decreased significantly to 55.1 billion yen from 122.6 billion yen, and to 37.9 billion yen from 107.8 billion yen, respectively, mainly on one-off gain of 79.8 billion yen from pension scheme change incurred as other income (deductions) a year ago.
* For information about operating profit, see Note 2 of the Notes to consolidated financial statements attached PDF: http://panasonic.co.jp/corp/news/official.data/data.dir/2014/07/en140731-15/en140731-15-6.pdf
Breakdown by Segment
The company transferred some businesses among segments as of April 1, 2014, due to its reorganization including Appliances Company. Accordingly, segment information for the first quarter of fiscal 2014 has been reclassified conforming to the presentation for the first quarter of fiscal 2015.
The company’s first quarter consolidated sales and profits by segment with previous year comparisons are summarized as follows:
Sales increased by 1% to 465.4 billion yen from 459.8 billion yen a year ago. Sales increased due mainly to stable shipments to restock distributors’ inventory which had been at a low level after demand surge before consumption tax hike in Japan, and improvement of air-conditioner business in China which was sluggish a year ago.
Segment profit significantly increased by 101% to 22.5 billion yen, compared with 11.2 billion yen a year ago due mainly to profit improvement of the challenging businesses. The device businesses also contributed to the overall profit increase.
Sales increased by 4% to 384.4 billion yen from 369.7 billion yen a year ago due mainly to capturing demand steadily in Japan, despite slow housing market after consumption tax hike. Securing orders in consumer spending surge before consumption tax hike at the end of fiscal 2014 also contributed to sales increase. Overseas sales expanded due to newly-consolidated VIKO and sales increases in strategic regions including India and Asia. Segment profit increased by 6% to 16.2 billion yen from 15.2 billion yen a year ago due mainly to benefit from sales increase and streamlining initiatives.
Sales increased by 1% to 273.8 billion yen from 270.6 billion yen a year ago due mainly to stable sales in core businesses, although sales of PDPs and smartphones for consumers decreased due to business reform. Segment loss was 8.1 billion yen, significantly improved from a loss of 15.4 billion yen a year ago due mainly to effects of reforms in challenging businesses.
Automotive & Industrial Systems
Sales increased by 2% to 680.4 billion yen from 664.3 billion yen a year ago. Sales increased due mainly to positive impact of yen depreciation and sales growth for automotive-use businesses including infotainment systems and portable rechargeable batteries. Segment profit decreased by 18% to 23.5 billion yen from 28.7 billion yen a year ago. Sales increase and other measures were unable to offset the fixed cost increases.
Sales decreased by 18% to 143.2 billion yen from 174.1 billion yen a year ago due mainly to the healthcare-related business transfer at the end of fiscal 2014. Segment loss was 2.0 billion yen, almost unchanged from a loss of 1.7 billion yen a year ago.
Consolidated Financial Condition
Net cash provided by operating activities for the first quarter of fiscal 2015 amounted to 127.6 billion yen, compared with an inflow of 102.4 billion yen a year ago, due mainly to an improvement in working capital including an increase in trade payables. Net cash used in investing activities amounted to 42.0 billion yen, compared with an outflow of 49.1 billion yen a year ago due mainly to an increase in proceeds from disposals of property, plant and equipment. Accordingly, free cash flow (net cash from operating activities plus net cash from investing activities) amounted to 85.6 billion yen, increased by 32.3 billion yen a year ago. Net cash used in financing activities amounted to 37.7 billion yen, compared with an outflow of 93.7 billion yen a year ago, due mainly to a decrease in repaying interest-bearing debt, despite an increase in dividend paid. Taking into consideration exchange rate fluctuations, cash and cash equivalents totaled 634.3 billion yen as of June 30, 2014, up 41.9 billion yen, compared with the end of the last fiscal year.
The company’s consolidated total assets as of June 30, 2014 increased by 23.0 billion yen to 5,236.0 billion yen from March 31, 2014. This was due mainly to increases in cash and cash equivalents, and inventories, despite decrease in accounts receivables and property, plant and equipment. Panasonic Corporation shareholders’ equity increased by 15.5 billion yen compared with March 31, 2014, to 1,563.7 billion yen, due mainly to recording net income attributable to Panasonic Corporation. Adding noncontrolling interests to Panasonic Corporation shareholders’ equity, total equity was 1,587.8 billion yen.
Forecast for Fiscal 2015
The business performance forecast for fiscal 2015 remains unchanged from the previous forecast announced on April 28, 2014.
Panasonic Corporation is one of the world's leading manufacturers of electronic and electric products for consumer, business and industrial use. Panasonic’s shares are listed on the Tokyo and Nagoya stock exchanges. For more information, please visit the following web sites:
Panasonic home page URL: http://panasonic.net/
Panasonic IR web site URL: http://panasonic.net/ir/
Disclaimer Regarding Forward-Looking Statements
This press release includes forward-looking statements (that include those within the meaning of Section 21E of the U.S. Securities Exchange Act of 1934) about Panasonic and its Group companies (the Panasonic Group). To the extent that statements in this press release do not relate to historical or current facts, they constitute forward-looking statements. These forward-looking statements are based on the current assumptions and beliefs of the Panasonic Group in light of the information currently available to it, and involve known and unknown risks, uncertainties and other factors. Such risks, uncertainties and other factors may cause the Panasonic Group's actual results, performance, achievements or financial position to be materially different from any future results, performance, achievements or financial position expressed or implied by these forward-looking statements. Panasonic undertakes no obligation to publicly update any forward-looking statements after the date of this press release. Investors are advised to consult any further disclosures by Panasonic in its subsequent filings under the Financial Instrument and Exchange Act of Japan (the FIEA) and other publicly disclosed documents.
The risks, uncertainties and other factors referred to above include, but are not limited to, economic conditions, particularly consumer spending and corporate capital expenditures in the Americas, Europe, Japan, China and other Asian countries; volatility in demand for electronic equipment and components from business and industrial customers, as well as consumers in many product and geographical markets; the possibility that excessive currency rate fluctuations of the U.S. dollar, the euro, the Chinese yuan and other currencies against the yen may adversely affect costs and prices of Panasonic’s products and services and certain other transactions that are denominated in these foreign currencies; the possibility of the Panasonic Group incurring additional costs of raising funds, because of changes in the fund raising environment; the possibility of the Panasonic Group not being able to respond to rapid technological changes and changing consumer preferences with timely and cost-effective introductions of new products in markets that are highly competitive in terms of both price and technology; the possibility of not achieving expected results on the alliances or mergers and acquisitions; the possibility of not being able to achieve its business objectives through joint ventures and other collaborative agreements with other companies, including due to the pressure of price reduction exceeding that which can be achieved by its effort and decrease in demand for products from business partners which Panasonic highly depends on in BtoB business areas; the possibility of the Panasonic Group not being able to maintain competitive strength in many product and geographical areas; the possibility of incurring expenses resulting from any defects in products or services of the Panasonic Group; the possibility that the Panasonic Group may face intellectual property infringement claims by third parties; current and potential, direct and indirect restrictions imposed by other countries over trade, manufacturing, labor and operations; fluctuations in market prices of securities and other assets in which the Panasonic Group has holdings or changes in valuation of long-lived assets, including property, plant and equipment and goodwill, deferred tax assets and uncertain tax positions; future changes or revisions to accounting policies or accounting rules; as well as natural disasters including earthquakes, prevalence of infectious diseases throughout the world, disruption of supply chain and other events that may negatively impact business activities of the Panasonic Group. The factors listed above are not all-inclusive and further information is contained in the most recent English translated version of Panasonic’s securities reports under the FIEA and any other documents which are disclosed on its website.
Financial Tables and Additional Information
Statements of Income and Statements of Comprehensive Income [PDF: 12KB]
Balance Sheets [PDF: 12KB]
Information by Segment [PDF: 10KB]
Statements of Cash Flows [PDF: 12KB]
Notes to consolidated financial statements [PDF: 9KB]
Panasonic Group [PDF: 15KB]
Supplemental Financial Data [PDF: 106KB]
Download all [PDF: 164KB]
"LinearHub provides smart video conferencing, which is the Roundee service, and we archive all the video conferences and we also provide the transcript," stated Sunghyuk Kim, CEO of LinearHub, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Jan. 20, 2017 03:00 PM EST Reads: 1,630
When you focus on a journey from up-close, you look at your own technical and cultural history and how you changed it for the benefit of the customer. This was our starting point: too many integration issues, 13 SWP days and very long cycles. It was evident that in this fast-paced industry we could no longer afford this reality. We needed something that would take us beyond reducing the development lifecycles, CI and Agile methodologies. We made a fundamental difference, even changed our culture...
Jan. 20, 2017 02:30 PM EST Reads: 1,104
Things are changing so quickly in IoT that it would take a wizard to predict which ecosystem will gain the most traction. In order for IoT to reach its potential, smart devices must be able to work together. Today, there are a slew of interoperability standards being promoted by big names to make this happen: HomeKit, Brillo and Alljoyn. In his session at @ThingsExpo, Adam Justice, vice president and general manager of Grid Connect, will review what happens when smart devices don’t work togethe...
Jan. 20, 2017 02:15 PM EST Reads: 553
The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal ...
Jan. 20, 2017 01:30 PM EST Reads: 5,227
@DevOpsSummit taking place June 6-8, 2017 at Javits Center, New York City, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. @DevOpsSummit at Cloud Expo New York Call for Papers is now open.
Jan. 20, 2017 01:30 PM EST Reads: 3,584
"There's a growing demand from users for things to be faster. When you think about all the transactions or interactions users will have with your product and everything that is between those transactions and interactions - what drives us at Catchpoint Systems is the idea to measure that and to analyze it," explained Leo Vasiliou, Director of Web Performance Engineering at Catchpoint Systems, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York Ci...
Jan. 20, 2017 01:30 PM EST Reads: 5,722
SYS-CON Events announced today that Dataloop.IO, an innovator in cloud IT-monitoring whose products help organizations save time and money, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Dataloop.IO is an emerging software company on the cutting edge of major IT-infrastructure trends including cloud computing and microservices. The company, founded in the UK but now based in San Fran...
Jan. 20, 2017 01:00 PM EST Reads: 2,568
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
Jan. 20, 2017 12:30 PM EST Reads: 4,343
Discover top technologies and tools all under one roof at April 24–28, 2017, at the Westin San Diego in San Diego, CA. Explore the Mobile Dev + Test and IoT Dev + Test Expo and enjoy all of these unique opportunities: The latest solutions, technologies, and tools in mobile or IoT software development and testing. Meet one-on-one with representatives from some of today's most innovative organizations
Jan. 20, 2017 12:30 PM EST Reads: 1,644
WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web communications world. The 6th WebRTC Summit continues our tradition of delivering the latest and greatest presentations within the world of WebRTC. Topics include voice calling, video chat, P2P file sharing, and use cases that have already leveraged the power and convenience of WebRTC.
Jan. 20, 2017 12:30 PM EST Reads: 3,182
SYS-CON Events announced today that Super Micro Computer, Inc., a global leader in Embedded and IoT solutions, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 7-9, 2017, at the Javits Center in New York City, NY. Supermicro (NASDAQ: SMCI), the leading innovator in high-performance, high-efficiency server technology, is a premier provider of advanced server Building Block Solutions® for Data Center, Cloud Computing, Enterprise IT, Hadoop/Big Data, HPC and E...
Jan. 20, 2017 12:15 PM EST Reads: 5,832
Hardware virtualization and cloud computing allowed us to increase resource utilization and increase our flexibility to respond to business demand. Docker Containers are the next quantum leap - Are they?! Databases always represented an additional set of challenges unique to running workloads requiring a maximum of I/O, network, CPU resources combined with data locality.
Jan. 20, 2017 11:30 AM EST Reads: 747
WebRTC sits at the intersection between VoIP and the Web. As such, it poses some interesting challenges for those developing services on top of it, but also for those who need to test and monitor these services. In his session at WebRTC Summit, Tsahi Levent-Levi, co-founder of testRTC, reviewed the various challenges posed by WebRTC when it comes to testing and monitoring and on ways to overcome them.
Jan. 20, 2017 10:45 AM EST Reads: 6,085
Internet of @ThingsExpo, taking place June 6-8, 2017 at the Javits Center in New York City, New York, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. @ThingsExpo New York Call for Papers is now open.
Jan. 20, 2017 10:45 AM EST Reads: 3,699
"This week we're really focusing on scalability, asset preservation and how do you back up to the cloud and in the cloud with object storage, which is really a new way of attacking dealing with your file, your blocked data, where you put it and how you access it," stated Jeff Greenwald, Senior Director of Market Development at HGST, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Jan. 20, 2017 09:45 AM EST Reads: 5,509