Friday, October 31, 2014: Panasonic, the leading Japanese electronics firm, has gone through major restructuring in last couple of years and this phase has changed their business profile too. Panasonic is known as a diversified electronics manufacturer and in last two years they have sold off all their unprofitable units, closed several facilities and terminated employees.
All these steps were taken to pay off their heavy debt burden and now the debt loan has declined a lot to JPY5 billion which was JPY645 billion, just a year ago. Panasonic is hopeful now about an economic revival in next few years and the company shares are also looking positive. When the last fiscal year ended in March, the company’s shares revived a lot to JPY52 per share, recovering from major losses in past two years. This year earnings are expected to leap to 44 per cent which means JPY75 per share and the flat revenue is expected to be JPY7,733 billion.
The second quarter revenue will be announced on 31 October. Panasonic is an electronics company which focuses on sectors like automotive, housing aerospace and industrial. Their key functional products include car navigation systems, solar panels, LED lighting, appliances and so on. The largest functional areas, housing and automotive contribute more than half of their total revenue. Management board of the company has worked extensively in the overhaul. Now the restructuring phase is expected to end by this fiscal ensuring more and more growth. Panasonic is relying largely on their portable rechargeable batteries for electric cars and in-flight entertainment system market in airplanes for the economic recovery.
