Friday, November 25, 2011

Panasonic 2Q net profit falls 7.59% to RM20.32m

KUALA LUMPUR (Nov 25): Panasonic Manufacturing Malaysia Bhd net profit for the second quarter ended Sept 30, 2011 fell 7.59% to RM20.32 million from RM21.99 million a year earlier, due mainly to ''a derivative loss amounting to RM3.4 million.

The company said on Friday that its revenue for the quarter rose 10.23% to RM222.85 million from RM202.16 million in 2010.

Earnings per share fell to 33 sen from 36 sen in 2010, while net assets per share was RM10.33.

The company declared a gross interim dividend of 15 sen per share for the financial year ending March 31, 2012.

For the six months ended Sept 30, Panasonic's net profit fell to RM39.14 million from RM41.29 million, on the back of an increase in revenue to RM444.66 million from RM407.7 million.

Reviewing its performance, Panasonic said that its profitability had been affected by rising cost of raw materials, the strengthening of the ringgit against major currencies; US dollars and Japanese Yen, which had eroded export revenue and the increased costs for certain parts of which supply from its original maker has been disrupted by the Japan earthquake.

In addition, included in the current period's combined profit before tax was a derivative loss amounting to RM4.0 million compared to a derivative loss of RM127,000 in the previous year's corresponding period, it said.

On its prospects, Panasonic said the current outlook for the remaining financial year remained challenging.

'This is because the prevailing political instability in the Middle East region and the flood crisis in Thailand will have an unfavorable impact on the company's export sales,' it said.

Panasonic said that whilst it had mitigated the supply chain disruption arising from the Japan earthquake by securing new sources of supply, the cost of parts had increased and this had a negative impact on the bottom line.

'Nonetheless, as the company's export revenue are mainly denominated in US dollars and Japanese Yen, the recent strengthening of these currencies against the ringgit coupled with the easing of the price of raw materials will cushion some of the negative impact.

'Despite the challenging outlook ahead, the company will remain profitable for the current financial year,' it said.





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