Panasonic Posted A Net Loss For Q1 2021 For The First Time In 9 Years
Panasonic Corp., one of the leading Japanese consumer electronics manufacturers, ended the first quarter of the fiscal year 2021 with a net loss due to the COVID-19 pandemic, which caused a drop in demand in all business segments.
The company reported a net loss of 9.83 billion yen ($93 million) in April-June, compared with a net profit of 49.78 billion yen for the same period last year.
The company's last quarterly loss was recorded in 2011 after a devastating earthquake and tsunami, the Japan Times notes.
Panasonic's revenue fell 26.4% to 1.39 trillion yen last quarter. Operating profit fell from 93.3% to 3.76 billion yen.
Panasonic forecasts a 55.7% drop in net profit to 100 billion yen, a 48.9% drop in operating profit to 150 billion yen, and a 13.2% drop in revenue to 6.5 trillion yen.
The company expects a gradual easing of the negative impact of the pandemic in the second half of the year but the performance of several businesses, including aviation equipment, will remain weak until the end of the current financial year.
"In June, revenue returned to the level of 91% from last year due to a good recovery in demand in China and Japan, but the market situation in Europe and North America remains difficult," the company said in a statement.
Panasonic is one of the world's leading manufacturers of consumer electronics. It is a global concern that includes more than 500 enterprises and research centers around the world. Panasonic, based in Japan, is listed on the Tokyo, Osaka, Nagoya and New York stock exchanges. The state has about 259.4 thousand people.
The company's capitalization has grown by less than 1% since the beginning of 2020 and is now about 2.44 trillion yen.