Panasonic Q3 2012: $9 Billion Loss, Write-Down Sanyo Acquisition Costs, Promises Restructuring

Posted on Feb 3 2012 - 11:54am by Editorial Staff

Japan’s Panasonic Corporation today reported its consolidated financial results for the third quarter and nine months ended December 31, 2011, of the current fiscal year ending March 31, 2012 (fiscal 2012). The company is blaming the Japanese Earthquake for damaging its supply chain, a strong yen for keeping prices high, plus having to write-down the costs for its acquisition of Sanyo. The company’s promising to restructure to become a “green innovation” business as well as to streamline its operating costs.

Results Highlights:

  • Consolidated group sales for the third quarter decreased by 14% to 1,960.2 billion yen from 2,285.5 billion yen, compared with the same period a year ago. Of the consolidated group total, domestic sales amounted to 1,043.8 billion yen, down by 13% from 1,200.6 billion yen and overseas sales decreased to 916.4 billion yen, down by 16% from 1,084.9 billion yen.
  • Consolidated group sales for nine months ended December 31, 2011 decreased by 10% to 5,965.4 billion yen, compared with 6,653.4 billion yen in the same period of fiscal 2011. Domestic sales amounted to 3,080.2 billion yen, down by 9% from 3,390.1 billion yen a year ago, while overseas sales decreased by 12% to 2,885.2 billion yen, down from 3,263.3 billion yen a year ago.
  • Net cash used in operating activities for nine months ended December 31, 2011 amounted to 38.2 billion yen, due to incurring net loss and decrease in trade payables. Net cash used in investing activities amounted to 199.7 billion yen. Net cash used in financing activities was 15.7 billion yen, due mainly to repayments of long-term debt including bond redemption and dividend payment, despite the issuance of short-term bonds. Taking into consideration the effect of exchange rate fluctuations, cash and cash equivalents totalled 685.9 billion yen as of December 31, 2011, a decrease of 289.0 billion yen, compared with the end of the last fiscal year.
  • The company’s consolidated total assets as of December 31, 2011 decreased by 822.0 billion yen to 7,000.9 billion yen from the end of fiscal 2011. The company’s consolidated total liabilities amounted to 4,604.6 billion yen, attributable primarily to the appreciation of the yen and a decrease in account payables. It’s predicting a quarterly loss of 701 billion yen (about $9.2 billion; as we reported earlier) as it takes the hit for this turmoil, and it doesn’t look like things will improve with an anticipated further loss of another 152 billion yen (about $2 billion) at the end of the (financial) year.
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