Panasonic returned to profit last quarter helped by aggressive
cost cuts, despite a decline in sales.
The Japanese company posted a net profit of 61.4 billion yen ($667
million) in the October-December quarter versus a Y197.6 billion
loss in the year-ago period.
The company said global demand weakened for flat panel TVs and
digital products and devices, but sales grew in LED lighting and
Panasonic is undergoing a radical shift in strategy, turning away
from its once mainstay consumer electronics business to focus on
more industrial products that offer better profit margins.
Panasonic plans to streamline its operations, focusing on fewer
businesses and employing less staff.
Instead of competeing against S. Korean giants Samsung Electronics
and LG Electronics Inc. in the TV industry, Panasonic sees more
opportunity in constructing environmentally friendly buildings
equipped with its energy-saving appliances and its renewable energy
products such as solar panels.
The yen's slide since mid-November also helped Panasonic increase
its earnings made abroad.
The company also kept its forecast for a net loss of 765 billion
yen for the business year.