Matsushita Electric Industrial Co., Ltd. reported its consolidated financial results for the second quarter. Consolidated group sales for the second quarter increased 2 percent to 2.3 trillion yen (approx. U.S. $19.6 billion), from 2.2 trillion yen (approx. $18.7 billion) in the same 3-month period a year ago. Explaining the second quarter results, the company cited sales gains in digital audiovisual (AV) products, Home Appliances, Components and Devices, and MEW and PanaHome. Of the consolidated group total, domestic sales increased 1 percent to 1.1 trillion yen (approx. $9.4 billion), from 1.1 trillion yen (approx. $9.4 billion) a year ago. Overseas sales increased 3 percent to 1.13 trillion yen (approx. $9.6 billion), from 1.10 trillion yen (approx. $9.4 billion) in the second quarter of fiscal 2006.
Regarding earnings, negative factors such as intensified global price competition and increased raw materials prices were more than offset by comprehensive cost reduction efforts, successive launch of V-products and other positive factors. As a result, operating profit for the second quarter was up 14 percent, to 142.3 billion yen (approx. $1.2 billion), from 125.1 billion yen (approx. $1 billion) in the same period a year ago. Pre-tax income totaled 157.1 billion yen (approx. $1.3 billion), up 79 percent from 87.9 billion yen (approx. $748.5 million) last year. This improvement was due mainly to a decrease in expenses associated with early retirement programs to 3.8 billion yen (approx. $32.4 million), compared with 20.6 billion yen (approx. $175.4 million) in the previous yearâ€™s second quarter. Net income increased 156 percent to 79.3 billion yen (approx. $675.4 million), from 31 billion yen (approx. $264 million) in the same quarter of the previous year.
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