Panasonic income surges 37% to P89M in Apr-June

MANILA, Philippines - Strong sales driven by the domestic market allowed Panasonic Manufacturing Philippines Corp. to record a healthy double-digit profit growth in April to June.

In a regulatory filing, the listed appliance maker said its profits in the first quarter of its fiscal year ending March 2014 climbed 37 percent to P88.97 million from P64.62 million a year ago.

Consolidated sales reached P2.19 billion, up nearly 10 percent from P2 billion in the same period last year.

“The increase in sales was brought about the success in bringing back the confidence of major dealers and improvement in the quality of products and services as well as the stable purchasing power in domestic market,” Panasonic said.

The company is a beneficiary of overseas Filipino remittances that fuel consumer spending.

Panasonic is a manufacturer, importer and distributor of electronic, electrical, mechanical, electro-mechanical appliances and other types of machinery.

The firm said its cost of sales posted a tempered growth of 7.6 percent to P1.56 billion “mainly due to the decrease in cost of major raw material components.”

Panasonic, which was originally set up as Festival Manufacturing Corp. in 1963, secures bulk of its sales from the domestic market while the remaining is taken up by exports in countries like Hong Kong, Singapore, Bangladesh and Cambodia.

The group’s business segments and products are divided into Global Consumer Marketing Sector that includes audio, video, home appliances; System Network Co. that includes communication and security equipment; Ecology Sector that lists environment friendly products; and other products composed of industrial cooling systems.

The firm has a manufacturing plant for refrigerators, electric fans, air-conditioners, washing machines and flashlights in Carmelray Industrial Park II in Laguna.

Early in 2009, the company stopped the operation of its battery unit in Taytay, Rizal to cut operating costs. Panasonic also holds a 40-percent stake in realty brokerage firm Precision Electronics Realty Corp.