Panasonic Q2 profit rises but cuts outlook
TOKYO Oct 31 (Reuters) - Panasonic Corp posted a 16 percent gain in second-quarter operating profit as it moves away from loss-making TVs in favour of batteries, household appliances and other businesses outside its struggling consumer electronics mainstay.
In the three months to Sept. 30, Panasonic posted an operating profit of 48.8 billion yen ($613.22 million) compared with a profit of 42 billion yen a year ago. The result was lower than the average 55.6 billion yen profit estimate from five analysts surveyed by Thomson Reuters I/B/E/S.
Panasonic's new CEO, Kazuhiro Tsuga is readying a revival plan for the sprawling electronics conglomerate that he has promised will weed out loss-making or low-profitability units. New restructuring could add to costs and trim profits.
The maker of Viera TVs lowered its outlook for full-year operating profit to 140 billion from a forecast in July of 260 billion yen, under an average profit forecast of 225 billion yen from 19 analysts.
In the year ended on March 31, the company recorded an operating profit of 43.7 billion yen.
Since the start of the year, Panasonic's shares have dropped more than 20 percent compared with a more than 5 percent gain in Tokyo's benchmark Nikkei 225.