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Panasonic expands business closure due to new coronavirus-preparing for alternative production

Panasonic announced its consolidated results for the third quarter of fiscal 2019 [April to December 2019]. Net sales decreased 5.4% year-on-year to 5,755.6 billion yen, operating profit decreased 17.8% to 240.6 billion yen, profit before tax decreased 19.1% to 238.0 billion yen, and net income increased 2.6% to 178.1 billion yen It became.

In the third quarter [October-December 2019], consolidated net sales decreased 7.9% year-on-year to 1,091.2 billion yen, adjusted operating income increased 1.5% to 95.3 billion yen, and operating income Profit before tax declined 2.8% to ¥ 100.4 billion, profit before tax fell 3.2% to ¥ 100.2 billion, and net income fell 22.2% to ¥ 77.2 billion.

FY3 / Q3 consolidated results

FY3 / Q3 consolidated results

Decreased sales and profits due to sluggish investment demand in China

Hirokazu Umeda, Managing Director and CFO of Panasonic, said, "In the third quarter, sales decreased, but adjusted operating income was on par with the previous year due to improvements in marginal profit margins and reductions in fixed costs. Operating income and net income increased as structural reform expenses from business portfolio reforms were covered by gains from the sale of businesses. " The slump in investment demand in China and elsewhere, a slowdown in the automobile market, a domestic consumption tax hike, and foreign exchange rates have allegedly affected sales.

Mr. Hirokazu Umeda, Managing Director and CFO of Panasonic

Mr. Hirokazu Umeda, Managing Director and CFO of Panasonic

セ グ メ ン ト In the third quarter [October-December 2019], consolidated sales of appliance manufacturing and sales decreased 7% year on year to 704.5 billion yen, and adjusted operating income increased 3.7 billion yen to 29.4 billion yen.

Of which, sales of Air Conditioning and Cooling Solutions, including room air conditioners, decreased 1.8% year on year to ¥ 100.2 billion. Sales of home appliances such as white goods decreased 0.3% year on year to ¥ 243.8 billion. Smart life networks such as TVs fell 15.3% to ¥ 170.1 billion.

"Sales declined due to lower sales of TVs and digital cameras in Europe and the impact of the consumption tax hike in Japan, but sales increased in the second quarter due to increased sales of home appliances and cost reductions in TVs."

In room air conditioners, although profitable Japan struggled during the warm winter, sales were strong in Asia and Europe, covering this. In home appliances, refrigerators and beauty appliances performed well in Japan and overseas. In the Smart Life Network, TV and digital cameras struggled, especially in Europe, in addition to the rebound from the tax increase in Japan. However, in Japan, solid sales of OLED TVs contributed positively.

Life Solutions decreased 1% year-on-year to 512 billion yen, and adjusted operating income increased 5.5 billion yen year-on-year to 33.4 billion yen. "The decrease in sales of lighting and other products is covered by increased sales in the IAQ [Indoor Air Quality] business and the housing-related business. Profit increased following the first and second quarters due to rationalization and other factors."

North American plant for automotive battery production achieves profitability in Q3 total

Connected Solutions sales declined 6% year-on-year to ¥ 25.1 billion, and adjusted operating income fell ¥ 2.8 billion to ¥ 17.7 billion. "Sales and profits declined due to sluggish investment demand in China and other markets and a slowdown in the market for automobiles, which led to lower sales of mounting machines."

パ ソ コ ン Due to the impact of special demand following the end of Windows 7 support, PCs for Japan and North America performed well, and Mobile Solutions, including "Let Note," posted higher sales and profits. PSSJ [Panasonic System Solutions Japan] also reported strong sales of PCs in Japan following the end of Windows 7 support, but a change in sales composition, resulting in higher sales but slightly lower profits.

In Automotive, net sales decreased 7% year on year to ¥ 366.2 billion, and adjusted operating income decreased ¥ 8.9 billion to a loss of ¥ 6.7 billion. "Although the sales and profits of cylindrical in-vehicle batteries increased, sales and profits declined due to the effects of reduced sales of in-vehicle equipment due to the slowdown in market conditions and increased fixed costs for rectangular in-vehicle batteries."

At the North American plant that manufactures on-board batteries for Tesla, when it announced its first half results, it stated that it would work on a profitable monthly basis in the second half, but said, “ Achieved total profitability in the third quarter I did it. "

Industrial Solutions reported sales of 36.2 billion yen, down 10% year on year, and adjusted operating income of 10 billion yen, down 11.4 billion yen. "In addition to the impact of the Chinese market, the supply and demand balance of rechargeable batteries in China has deteriorated, and the Koriyama Plant has been affected by the disaster, resulting in lower sales and profits."

The Koriyama Plant has lost billions of yen due to the disaster, but plans to complete restoration by the end of February 2020.

On the other hand, the consolidated business forecast for fiscal 2019 [April 2019 to March 2020] remains unchanged from the forecast announced in November 2019, with sales down 3.8% year-on-year to 7.7 trillion yen and operating profit 27.1% The company plans to reduce sales and profits by ¥ 300 billion, profit before tax by 30.4% to ¥ 290 billion, and net income by 29.8% to ¥ 200 billion.

The company-wide outlook remains unchanged for both sales and profits, but some segments have been revised to reflect the current business situation and the impact of business portfolio reforms. "

In Connected Solutions, the adjusted operating income was revised downward by ¥ 3.0 billion, reflecting the impact of the sale of the security system business.In Industrial Solutions, the slowdown in the automobile market, especially in China, Considering worsening, typhoon disaster, decrease in intellectual property income, and impairment of semiconductor business, sales decreased by 30 billion yen and adjusted operating income decreased by 20 billion yen.

Revised forecast by segment [revised from the value announced on October 31, 2019]

Revised forecast by segment [revised from the value announced on October 31, 2019]

Progress of business portfolio reform

Progress of business portfolio reform

Extended suspension of operations at all Chinese offices, devices prepare for alternative production

Regarding the effects of the new coronavirus, "We have not yet been able to make an estimate of how the Chinese market will look. All Chinese offices have been closed due to the Chinese New Year and scheduled to start operation today. However, this has been extended to February 10. Most of the Japanese employees have returned to Japan for the New Year in China, and will return to China when they are restarted. We are preparing for replacement production for devices that are not enough, but we are preparing for replacement production, but it will not shift immediately. The basics will be in line with the policies of the Chinese and local governments. "


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