Panasonic bounces back after cost-cutting

ELECTRONICS group Panasonic has reported its second straight quarterly profit – after an extensive cost-cutting campaign.

Pre-tax profit between October and December came in at 32.3bn yen (£228m), compared with a net loss of 63.1bn for the same period a year earlier.

The improvement was "due mainly to comprehensive streamlining of management", the firm said.

However, it maintained its forecast for a loss of 140bn yen for the year to the end of March.

The company said that sales of consumer electrical goods remained slow.

"In the electronics industry during the third quarter, despite visible signs of market recovery in regions such as China and Asia, severe business conditions continued," it said.

The strong yen was also hampering exports, it added.

At the end of last year, Panasonic bought a majority 50.2 per cent stake in rival Sanyo.