Panasonic sees record profit on robust battery demand, US tax credit
JAPAN’S Panasonic Holdings on Wednesday (May 10) said it expects net profit to rise to a record high this year on robust auto battery sales and a hefty tax credit in the US.
The industrial conglomerate, which supplies batteries to US electric vehicle (EV) leader Tesla, is expanding its energy business just as persistently high inflation rates worldwide dampen consumer sentiment.
Panasonic predicts net profit will grow 32 per cent from a year earlier to a record 350 billion yen (S$3.4 billion) as it expects a tax credit for EV battery operations under the US Inflation Reduction Act to boost its bottom line by 100 billion yen.
The net profit outlook would be up 23 per cent from the prior record for net profit of 284.1 billion yen, set in the year ending in March 2019.
The company sees operating profit of 430 billion yen for the year through March 2024, versus 288.6 billion yen a year earlier. That beats the 383.96 billion yen average of 20 analyst estimates compiled by Refinitiv.
For the fourth quarter of the year ended Mar 31, Panasonic posted operating profit of 54.4 billion yen. That compared with 83.4 billion yen a year prior and the 59.49 billion yen average of 12 analyst estimates. REUTERS
GET BT IN YOUR INBOX DAILY
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
AMD slides after AI chip forecast misses lofty estimates
IBM wins reversal of US$1.6 billion poaching award to BMC
Binance founder Zhao Changpeng gets 4 months in prison
Singapore Airlines could post highest-ever earnings of about S$2.7 billion for FY2024, says analyst
Amazon’s Twitch starts rival to TikTok in short-form video
Pinterest revenue surges on popularity of shopping push