- Cost Reductions Led to Favorable Six-Month Earnings -
OSAKA, Japan--(Business Wire)--
Panasonic Corporation(1) (Panasonic)(NYSE:PC) today reported its
consolidated financial results for the second quarter and six months
ended September 30, 2008, of the current fiscal year ending March 31,
2009 (fiscal 2009).
(1) As of October 1, 2008, the company changed its name from
"Matsushita Electric Industrial Co., Ltd." to "Panasonic Corporation."
Consolidated Second-quarter Results
Consolidated group sales for the second quarter decreased 4% to
2,191.7 billion yen, from 2,285.8 billion yen in the same three-month
period a year ago. Explaining the second quarter results, although
sales gains were recorded mainly in digital AV products and white
goods, total sales declined because sales of information and
communication equipment were sluggish and sales of JVC (Victor Company
of Japan, Ltd. and its subsidiaries)(2) were included in the
consolidated group sales in the previous year's comparable period. Of
the consolidated group total, domestic sales decreased 4% to 1,065.4
billion yen, from 1,109.8 billion yen a year ago. Overseas sales
decreased 4% to 1,126.3 billion yen, from 1,176.0 billion yen in the
second quarter of fiscal 2008.
(2) Victor Company of Japan, Ltd. and its subsidiaries became
associated companies under the equity method from the company's
consolidated subsidiaries from August 2007. For more information, see
Note 6 of the Notes to consolidated financial statements on page 15.
In the electronics industry during the second quarter under
review, while there was a growing demand for flat-panel TVs related to
the Beijing Olympics, severe business conditions continued in Japan
and overseas, due mainly to rising prices for raw materials and
energy, and price declines centered on digital products. Under these
circumstances, in fiscal 2009 as the middle year of the three-year
mid-term management plan GP3, Panasonic is striving to produce
successful results and create a new trend for achieving goals. Aiming
at getting growth back on track and strengthening profitability,
Panasonic is implementing initiatives focused on four major themes:
double-digit growth in overseas sales, expansion of four strategic
businesses, manufacturing innovation and the "eco ideas" strategy.
Regarding earnings, operating profit(3) for the second quarter was
down 19%, to 118.6 billion yen, from 146.1 billion yen in the same
period a year ago. This decrease was due mainly to the negative
effects of intensified global price competition and a stronger yen
against the U.S. dollar, as well as rising prices for crude oil and
other raw materials. These and other factors resulted in pre-tax
income of 84.0 billion yen, down 19% from 103.7 billion yen in the
same period a year ago. Net income decreased 16% to 55.5 billion yen,
from 65.8 billion yen in the same quarter of the previous year.
(3) For information about operating profit, see Note 2 of Notes to
consolidated financial statements on page 15.
Consolidated Six-month Results
Combining the second quarter results with those of the first
quarter, consolidated group sales for the six months ended September
30, 2008 decreased 4% to 4,343.7 billion yen, compared with 4,525.3
billion yen in the same six-month period a year ago. Explaining the
six-month results, although sales gains were recorded mainly in
digital AV products, total sales declined because sales of JVC were
included in the consolidated group sales in the previous year's
comparable period. Domestic sales amounted to 2,110.6 billion yen,
down 4% from 2,187.8 billion yen in the previous year's six months,
while overseas sales decreased 4% to 2,233.1 billion yen from 2,337.5
billion yen a year ago.
For reasons similar to those given for second quarter results, the
company's operating profit for the six months increased 4% to 228.2
billion yen, from 220.0 billion yen in the comparable period a year
ago. Despite the negative effects of intensified global price
competition and a stronger yen against the U.S. dollar, as well as
rising prices for crude oil and other raw materials, this result was
due primarily to comprehensive cost reduction activities including
materials costs and fixed costs, and sales gains in real terms
excluding specific factors such as the effects of JVC. In other income
(deductions), the company incurred less expenses associated with the
implementation of early retirement programs compared with a year ago.
These and other factors resulted in pre-tax income of 203.3 billion
yen, up 8% from 187.6 billion yen in the same period a year ago. Net
income increased 22% to 128.5 billion yen, as compared with 105.1
billion yen in the six months of the previous year. The company's net
income per common share was 61.58 yen on a diluted basis, versus 49.32
yen in the six months of last year.
Consolidated Six-month Sales Breakdown by Product Category
The company's six-month consolidated sales by product category, as
compared with prior year amounts, are summarized as follows:
Digital AVC Networks(4)
Digital AVC Networks sales increased 3% to 1,969.0 billion yen,
from 1,920.2 billion yen in last year's six months. Sales of video and
audio equipment increased 14% from the previous year's six months, due
mainly to favorable sales in digital AV products such as flat-panel
TVs and DVD recorders.
In information and communications equipment, sluggish sales of
automotive electronics led to a 6% decrease overall.
Home Appliances
Sales of Home Appliances increased 2% to 654.1 billion yen,
compared with 641.8 billion yen in last year's six months, due mainly
to steady sales of air conditioners and refrigerators.
MEW and PanaHome(5)
Sales of MEW and PanaHome decreased 1% to 837.2 billion yen, from
849.1 billion yen last year. At Matsushita Electric Works, Ltd.
(MEW)(6) and its subsidiaries, sales decreased mainly in home
appliances such as health enhancing products. At PanaHome Corporation
and its subsidiaries, sluggish housing market conditions led to a
decrease in sales.
Components and Devices
Sales of Components and Devices were down 8% to 541.9 billion yen,
compared with 586.0 billion yen in the same period of the previous
year. Sluggish sales in general electronic components and batteries
led to an overall decrease in sales.
Other
Sales of Other totaled 341.5 billion yen, down 2% from 347.7
billion yen in the same period a year ago, due mainly to a sales
decline in factory automation equipment within this category.
(4) From fiscal 2009, the name of "AVC Networks" was changed to
"Digital AVC Networks."
(5) The name of "MEW and PanaHome" was as of September 30, 2008.
(6) From October 1, 2008, the name of Matsushita Electric Works,
Ltd. (MEW) was changed to Panasonic Electric Works, Ltd. (PEW).
Consolidated Financial Condition
Net cash provided by operating activities in the fiscal 2009 six
months ended September 30, 2008 amounted to 136.3 billion yen. Despite
an increase of inventories, this result was due mainly to cash inflows
from net income and depreciation. Net cash used in investing
activities amounted to 270.0 billion yen. This was due primarily to
capital expenditures for tangible fixed assets, mainly consisting of
manufacturing facilities for priority business areas such as plasma
and liquid crystal display panels, and semiconductors. Net cash used
in financing activities was 117.0 billion yen. Major factors included
the repurchase of the company's common stock and the payment of cash
dividends. All these activities resulted in cash and cash equivalents
of 973.1 billion yen at the end of the second quarter of fiscal 2009,
down 241.7 billion yen from the end of the last fiscal year (March 31,
2008).
The company's consolidated total assets as of September 30, 2008
amounted to 7,299.4 billion yen, a decrease of 144.2 billion yen as
compared with the end of the last fiscal year. Although inventories
increased as a result of seasonal factors, this result was due
primarily to a decrease of cash and cash equivalents. Stockholders'
equity decreased 62.8 billion yen, as compared with the end of the
last fiscal year, to 3,679.5 billion yen as of September 30, 2008.
This was due mainly to a decrease in other comprehensive income and an
increase in treasury stock on continued repurchases of the company's
own shares, despite increases in retained earnings.
Interim and Year-end Dividend
The Board of Directors of the company resolved today to distribute
an interim (semiannual) cash dividend of 22.5 yen per common share to
shareholders of record as of September 30, 2008, payable November 28,
2008. This is an increase from last year's interim dividend of 17.5
yen. The company also plans to distribute a year-end cash dividend of
22.5 yen per common share (payable to shareholders of record as of
March 31, 2009). If implemented, total dividends for fiscal 2009,
including the aforementioned interim dividend of 22.5 yen per common
share, will be 45.0 yen per common share.
Outlook for the Full Fiscal Year 2009
Current financial crisis originating in the United States is
widespread globally and there are sharp fluctuations in exchange rates
and stock prices. Under these circumstances, the company expects the
outlook of the business environment for the fiscal year's third
quarter onward to be uncertain, with concerns about the weak real
economy. Accordingly, the forecast for the full fiscal year 2009,
ending March 31, 2009, remains unchanged at this time from the
forecast announced on April 28, 2008. The company will review the
outlook for the full year, and make determinations regarding a
possible revision at the announcement of third quarter financial
results.
Panasonic Corporation, best known for its Panasonic brand
products, is one of the world's leading manufacturers of electronic
and electric products for consumer, business and industrial use.
Panasonic's shares are listed on the Tokyo, Osaka, Nagoya and New York
stock exchanges.
For more information, please visit the following web sites:
Panasonic home page URL: http://panasonic.net/
Panasonic IR web site URL: http://panasonic.net/ir/
Disclaimer Regarding Forward-Looking Statements
This press release includes forward-looking statements (within the
meaning of Section 27A of the U.S. Securities Act of 1933 and Section
21E of the U.S. Securities Exchange Act of 1934) about Panasonic and
its Group companies (the Panasonic Group). To the extent that
statements in this press release do not relate to historical or
current facts, they constitute forward-looking statements. These
forward-looking statements are based on the current assumptions and
beliefs of the Panasonic Group in light of the information currently
available to it, and involve known and unknown risks, uncertainties
and other factors. Such risks, uncertainties and other factors may
cause the Panasonic Group's actual results, performance, achievements
or financial position to be materially different from any future
results, performance, achievements or financial position expressed or
implied by these forward-looking statements. Panasonic undertakes no
obligation to publicly update any forward-looking statements after the
date of this press release. Investors are advised to consult any
further disclosures by Panasonic in its subsequent filings with the
U.S. Securities and Exchange Commission pursuant to the Securities
Exchange Act of 1934.
The risks, uncertainties and other factors referred to above
include, but are not limited to, economic conditions, particularly
consumer spending and corporate capital expenditures in the United
States, Europe, Japan, China and other Asian countries; volatility in
demand for electronic equipment and components from business and
industrial customers, as well as consumers in many product and
geographical markets; currency rate fluctuations, notably between the
yen, the U.S. dollar, the euro, the Chinese yuan, Asian currencies and
other currencies in which the Panasonic Group operates businesses, or
in which assets and liabilities of the Panasonic Group are
denominated; the ability of the Panasonic Group to respond to rapid
technological changes and changing consumer preferences with timely
and cost-effective introductions of new products in markets that are
highly competitive in terms of both price and technology; the ability
of the Panasonic Group to achieve its business objectives through
joint ventures and other collaborative agreements with other
companies; the ability of the Panasonic Group to maintain competitive
strength in many product and geographical areas; the possibility of
incurring expenses resulting from any defects in products or services
of the Panasonic Group; the possibility that the Panasonic Group may
face intellectual property infringement claims by third parties;
current and potential, direct and indirect restrictions imposed by
other countries over trade, manufacturing, labor and operations;
fluctuations in market prices of securities and other assets in which
the Panasonic Group has holdings or changes in valuation of long-lived
assets, including property, plant and equipment and goodwill, deferred
tax assets and uncertain tax positions; future changes or revisions to
accounting policies or accounting rules; as well as natural disasters
including earthquakes and other events that may negatively impact
business activities of the Panasonic Group. The factors listed above
are not all-inclusive and further information is contained in
Panasonic's latest annual report on Form 20-F, which is on file with
the U.S. Securities and Exchange Commission.
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Panasonic Corporation
Consolidated Statement of Income *
----------------------------------------------------------------------
(Three months ended September 30)
Yen
(millions) Percentage
-----------------------
2008 2007 2008/2007
----------- ----------- ----------
Net sales JPY JPY
2,191,714 2,285,800 96%
Cost of sales (1,572,854) (1,637,523)
Selling, general and
administrative expenses (500,279) (502,174)
Interest income 7,547 8,653
Dividend income 888 684
Interest expense (5,558) (5,274)
Expenses associated with
the implementation of
early retirement programs ** (368) (14,854)
Other Income (loss), net (37,049) (31,639)
----------- -----------
Income before income taxes 84,041 103,673 81%
Provision for income taxes (23,765) (28,868)
Minority interests (7,955) (6,800)
Equity in earnings (losses) of
associated companies 3,140 (2,197)
----------- -----------
Net income JPY 55,461 JPY 65,808 84%
=========== ===========
Net income, basic
per common share 26.72 yen 30.99 yen
per ADS 26.72 yen 30.99 yen
Net income, diluted
per common share -- 30.99 yen
per ADS -- 30.99 yen
(Parentheses indicate expenses, deductions or losses.)
* ** See Notes to consolidated financial statements on pages 15-16.
Supplementary Information
----------------------------------------------------------------------
(Three months ended September 30)
Yen
(millions)
----------------------
2008 2007
---------- ----------
Depreciation (tangible assets) JPY 84,868 JPY 71,601
Capital investment *** JPY JPY
137,175 130,389
R&D expenditures JPY JPY
134,068 141,013
Number of employees (Sep. 30) 313,594 309,037
*** These figures are calculated on an accrual basis.
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Panasonic Corporation
Consolidated Statement of Income *
----------------------------------------------------------------------
(Six months ended September 30)
Yen
(millions) Percentage
-----------------------
2008 2007 2008/2007
----------- ----------- ----------
Net sales JPY JPY
4,343,711 4,525,305 96%
Cost of sales (3,098,704) (3,225,568)
Selling, general and
administrative expenses (1,016,853) (1,079,743)
Interest income 14,745 17,315
Dividend income 6,231 5,568
Interest expense (11,314) (10,580)
Expenses associated with
the implementation of
early retirement programs ** (593) (15,839)
Other Income (loss), net (33,927) (28,817)
----------- -----------
Income before income taxes 203,296 187,641 108%
Provision for income taxes (66,177) (70,864)
Minority interests (12,104) (5,012)
Equity in earnings (losses) of
associated companies 3,477 (6,643)
----------- -----------
Net income JPY JPY
128,492 105,122 122%
=========== ===========
Net income, basic
per common share 61.58 yen 49.32 yen
per ADS 61.58 yen 49.32 yen
Net income, diluted
per common share 61.58 yen 49.32 yen
per ADS 61.58 yen 49.32 yen
(Parentheses indicate expenses, deductions or losses.)
* ** See Notes to consolidated financial statements on pages 15-16.
Supplementary Information
----------------------------------------------------------------------
(Six months ended September 30)
Yen
(millions)
----------------------
2008 2007
---------- ----------
Depreciation (tangible assets) JPY JPY
165,979 136,500
Capital investment *** JPY JPY
239,857 217,162
R&D expenditures JPY JPY
265,142 279,916
Number of employees (Sep. 30) 313,594 309,037
*** These figures are calculated on an accrual basis.
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Panasonic Corporation
Consolidated Balance Sheet **
----------------------------------------------------------------------
September 30, 2008
With comparative figures for March 31, 2008
Yen
(millions)
-----------------------
Assets Sept. 30, March 31,
2008 2008
---------------------------------------------- ----------- -----------
Current assets:
Cash and cash equivalents JPY JPY
973,133 1,214,816
Time deposits 98,867 70,108
Short-term investments 17,374 47,414
Trade receivables:
Notes 60,490 59,060
Accounts 1,017,179 1,046,991
Allowance for doubtful receivables (22,020) (20,868)
Inventories 999,454 864,264
Other current assets 507,467 517,409
----------- -----------
Total current assets 3,651,944 3,799,194
----------- -----------
Investments and advances 777,983 842,156
Property, plant and equipment,
net of accumulated depreciation 1,840,318 1,757,373
Other assets 1,029,134 1,044,891
----------- -----------
Total assets JPY JPY
7,299,379 7,443,614
=========== ===========
Liabilities, Minority Interests and Stockholders' Equity
----------------------------------------------------------------------
Current liabilities:
Short-term borrowings JPY JPY
157,828 156,260
Trade payables:
Notes 40,924 37,175
Accounts 887,874 903,379
Other current liabilities 1,361,630 1,464,145
----------- -----------
Total current liabilities 2,448,256 2,560,959
----------- -----------
Noncurrent liabilities:
Long-term debt 262,152 232,346
Other long-term liabilities 398,292 393,360
----------- -----------
Total noncurrent liabilities 660,444 625,706
----------- -----------
Minority interests 511,145 514,620
Common stock 258,740 258,740
Capital surplus 1,217,901 1,217,865
Legal reserve 92,262 90,129
Retained earnings 3,033,928 2,948,065
Accumulated other
comprehensive income (loss) * (253,215) (173,897)
Treasury stock (670,082) (598,573)
----------- -----------
Total stockholders' equity 3,679,534 3,742,329
----------- -----------
Total liabilities, minority interests and JPY JPY
stockholders' equity 7,299,379 7,443,614
=========== ===========
* Accumulated other comprehensive income (loss) breakdown:
Yen
(millions)
-----------------------
Sept. 30, March 31,
2008 2008
----------- -----------
Cumulative translation adjustments JPY JPY
(213,054) (228,792)
Unrealized holding gains of
available-for-sale securities 20,244 45,442
Unrealized gains of
derivative instruments 4,475 4,326
Pension liability adjustments (64,880) 5,127
** See Notes to consolidated financial statements on pages 15-16.
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Panasonic Corporation
Consolidated Sales Breakdown *
----------------------------------------------------------------------
(Three months ended September 30)
Yen
(billions) Percentage
-------------------
2008 2007 2008/2007
--------- --------- -----------
Digital AVC Networks
--------------------------------------
Video and audio equipment JPY 496.4 JPY 445.3 111%
Information and communications
equipment 497.2 550.2 90%
--------- ---------
Subtotal 993.6 995.5 100%
--------- ---------
Home Appliances 311.3 301.9 103%
-------------------------------------- --------- ---------
MEW and PanaHome 448.1 463.4 97%
-------------------------------------- --------- ---------
Components and Devices 272.6 301.3 90%
-------------------------------------- --------- ---------
Other 166.1 178.5 93%
-------------------------------------- --------- ---------
JVC -- 45.2 --
-------------------------------------- --------- ---------
Total JPY JPY
2,191.7 2,285.8 96%
========= =========
Domestic sales 1,065.4 1,109.8 96%
Overseas sales 1,126.3 1,176.0 96%
(Six months ended September 30)
Yen
(billions) Percentage
-------------------
2008 2007 2008/2007
--------- --------- -----------
Digital AVC Networks
--------------------------------------
Video and audio equipment JPY 962.7 JPY 847.7 114%
Information and communications
equipment 1,006.3 1,072.5 94%
--------- ---------
Subtotal 1,969.0 1,920.2 103%
--------- ---------
Home Appliances 654.1 641.8 102%
-------------------------------------- --------- ---------
MEW and PanaHome 837.2 849.1 99%
-------------------------------------- --------- ---------
Components and Devices 541.9 586.0 92%
-------------------------------------- --------- ---------
Other 341.5 347.7 98%
-------------------------------------- --------- ---------
JVC -- 180.5 --
-------------------------------------- --------- ---------
Total JPY JPY
4,343.7 4,525.3 96%
========= =========
Domestic sales 2,110.6 2,187.8 96%
Overseas sales 2,233.1 2,337.5 96%
* See Notes to consolidated financial statements on pages 15-16.
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Panasonic Corporation
Consolidated Sales Breakdown *
----------------------------------------------------------------------
(Six months ended September 30)
(Overseas Sales by
Region) Yen
(billions) Percentage
----------------------
2008 2007 2008/2007
----------- ---------- -----------
North and South
America JPY 584.6 JPY 658.0 89%
Europe 575.4 604.9 95%
Asia and China 1,073.1 1,074.6 100%
----------- ----------
Total JPY
JPY 2,233.1 2,337.5 96%
=========== ==========
(Domestic/Overseas Sales Breakdown)
Domestic sales Overseas sales
Yen Yen
(billions) Percentage (billions) Percentage
----------- -----------
2008 2008/2007 2008 2008/2007
----------- ---------- ----------- ----------
Digital AVC Networks
----------------------
Video and audio
equipment JPY 257.7 114% JPY 705.0 113%
Information and
communications
equipment 481.4 95% 524.9 93%
----------- -----------
Subtotal 739.1 101% 1,229.9 104%
----------- -----------
Home Appliances 340.6 102% 313.5 101%
---------------------- ----------- -----------
MEW and PanaHome 662.2 96% 175.0 111%
---------------------- ----------- -----------
Components and Devices 181.3 93% 360.6 92%
---------------------- ----------- -----------
Other 187.4 99% 154.1 97%
---------------------- ----------- -----------
Total JPY 2,110.6 96% JPY 2,233.1 96%
=========== ===========
* See Notes to consolidated financial statements on pages 15-16.
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Panasonic Corporation
Consolidated Information by Business Segment *
----------------------------------------------------------------------
(Six months ended September 30)
By Business Segment:
---------------------------------------
Yen (billions) Percentage
-------------------
(Sales) 2008 2007 2008/2007
-------- -------- ----------
Digital AVC Networks JPY JPY
2,102.9 2,059.6 102%
Home Appliances 685.5 667.0 103%
MEW and PanaHome 928.7 937.2 99%
Components and Devices 670.2 712.3 94%
Other 598.6 542.3 110%
JVC -- 183.1 --
--------- ---------
Subtotal 4,985.9 5,101.5 98%
Eliminations (642.2) (576.2) --
--------- ---------
Consolidated total JPY JPY
4,343.7 4,525.3 96%
========= =========
(Segment Profit)**
Digital AVC Networks JPY JPY
102.8 110.1 93%
Home Appliances 46.9 37.3 126%
MEW and PanaHome 35.8 41.1 87%
Components and Devices 49.0 49.5 99%
Other 28.8 34.9 82%
JVC -- (9.7) --
--------- ---------
Subtotal 263.3 263.2 100%
Corporate and eliminations (35.1) (43.2) --
--------- ---------
Consolidated total JPY JPY
228.2 220.0 104%
========= =========
* ** See Notes to consolidated financial statements on pages 15-16.
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(For Reference)
Panasonic Corporation
Consolidated Information by Business Field (unreviewed) *
---------------------------------------------------------------------
(Six months ended September 30, 2008)
By Business Field**:
---------------------------------------------------------
Yen
(billions)
------------
(Sales) 2008
-----------
Digital AVC Networks Solution JPY 2,102.9
Solutions for the Environment and Comfortable Living 1,614.2
Devices and Industry Solution 1,268.8
------------
Subtotal 4,985.9
Eliminations (642.2)
------------
Consolidated total JPY 4,343.7
============
(Business Field Profit)***
Digital AVC Networks Solution JPY 102.8
Solutions for the Environment and Comfortable Living 82.7
Devices and Industry Solution 77.8
------------
Subtotal 263.3
Corporate and eliminations (35.1)
------------
Consolidated total JPY 228.2
============
* *** See Notes to consolidated financial statements on pages 15-16.
** For definition of business fields of the Group, see Note 9 of
Notes to consolidated financial statements on page 16.
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Panasonic Corporation
Consolidated Statement of Cash Flows *
----------------------------------------------------------------------
(Six months ended September 30)
Yen
(millions)
---------------------
Cash flows from operating activities: 2008 2007
----------------------------------------------- --------- ----------
Net income JPY JPY
128,492 105,122
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation and amortization 185,160 155,982
Net (gain) loss on sale of investments (5,836) (2,446)
Minority interests 12,104 5,012
(Increase) decrease in trade receivables 25,203 (16,878)
(Increase) decrease in inventories (135,804) (84,362)
Increase (decrease) in trade payables 26,216 10,416
Increase (decrease) in retirement
and severance benefits (54,997) (62,747)
Other (44,274) 71,590
---------- -----------
Net cash provided by operating activities JPY JPY
136,264 181,689
========== ===========
Cash flows from investing activities:
----------------------------------------------------------------------
(Increase) decrease in short-term investments -- 697
Proceeds from disposition of investments
and advances 83,944 88,063
Increase in investments and advances (25,579) (92,141)
Capital expenditures (271,773) (219,019)
Proceeds from sale of fixed assets 14,331 123,335
(Increase) decrease in time deposits (47,548) 188,187
Purchase of shares of a newly consolidated
subsidiary -- (50,465)
Other (23,342) (23,140)
---------- -----------
Net cash provided by (used in) investing JPY
activities (269,967) JPY 15,517
========== ===========
Cash flows from financing activities:
----------------------------------------------------------------------
Increase (decrease) in short-term borrowings (8,479) (21,546)
Increase (decrease) in deposits and
advances from employees (37) (44)
Increase (decrease) in long-term debt 13,029 (20,613)
Dividends paid (36,769) (32,194)
Dividends paid to minority interests (13,270) (10,783)
(Increase) decrease in treasury stock (71,473) (61,629)
Proceeds from issuance of shares by
subsidiaries -- 39,866
---------- -----------
Net cash used in financing activities JPY JPY
(116,999) (106,943)
========== ===========
Effect of exchange rate changes on cash
and cash equivalents 9,019 (10,944)
---------- -----------
Effect of changes in consolidated subsidiaries -- (93,441)
Net increase (decrease) in cash and cash
equivalents (241,683) (14,122)
Cash and cash equivalents at beginning of
period 1,214,816 1,236,639
---------- -----------
Cash and cash equivalents at end of period JPY JPY
973,133 1,222,517
========== ===========
* See Notes to consolidated financial statements on pages 15-16.
*T
Notes to consolidated financial statements:
1. The company's consolidated financial statements are prepared in
conformity with U.S. generally accepted accounting principles (U.S.
GAAP).
2. In order to be consistent with generally accepted financial
reporting practices in Japan, operating profit is presented as net
sales less cost of sales and selling, general and administrative
expenses. The company believes that this is useful to investors in
comparing the company's financial results with those of other Japanese
companies. Please refer to the accompanying consolidated statement of
income and Note 5 for U.S. GAAP reconciliation.
3. The company changed the measurement date to March 31 for those
postretirement benefit plans with a December 31 measurement date in
conformity with the provisions regarding the change in the measurement
date of postretirement benefit plan of SFAS No. 158, "Employers'
Accounting for Defined Benefit Pension and Other Postretirement Plans
- an amendment of FASB Statement No. 87, 88, 106, and 132(R)." With
the change in the measurement date, beginning fiscal 2009 balance of
"retained earnings" and pension liability adjustments of "accumulated
other comprehensive income (loss)" has been reduced by 3,727 million
yen and 73,571 million yen, respectively.
4. Comprehensive income was reported as a gain of 122,745 million
yen for the six months ended September 30, 2008. Comprehensive income
includes net income and increases (decreases) in accumulated other
comprehensive income (loss) for this period.
5. Under U.S. GAAP, expenses associated with the implementation of
early retirement programs at certain domestic and overseas companies
are included as part of operating profit in the statement of income.
6. Victor Company of Japan, Ltd. (JVC) issued and allocated new
shares of common stock to third parties on August 10, 2007 for a cash
consideration of 35 billion yen. As a result, the company's
shareholding in JVC decreased from 52.4% to 36.8%. JVC and its
subsidiaries became associated companies under the equity method from
consolidated subsidiaries from August 2007. JVC and Kenwood
Corporation integrated management by establishing JVC KENWOOD
Holdings, Inc. (JVC KENWOOD HD) as of October 1, 2008 through a share
transfer. The company has 24.4% of total issued shares of JVC KENWOOD
HD. JVC KENWOOD HD and its subsidiaries became associated companies
under the equity method from October 1, 2008.
7. Regarding consolidated segment profit, expenses for basic
research and administrative expenses at the corporate headquarters
level are treated as unallocatable expenses for each business segment,
and are included in Corporate and eliminations.
8. The company's business segments are classified according to a
business domain-based management system, which focuses on global
consolidated management by each business domain, in order to ensure
consistency of its internal management structure and disclosure. The
company has changed the transaction between Global Procurement Service
Company and other segments since April 1, 2008. Accordingly, segment
information for Other and Corporate and eliminations of fiscal 2008
has been reclassified to conform to the presentation for fiscal 2009.
Principal internal divisional companies or units and subsidiaries
operating in respective segments as of September 30, 2008 are as
follows:
Digital AVC Networks
Panasonic AVC Networks Company, Panasonic Communications Co.,
Ltd.,
Panasonic Mobile Communications Co., Ltd., Panasonic Automotive
Systems Company,
Panasonic System Solutions Company, Panasonic Shikoku Electronics
Co., Ltd.
Home Appliances
Matsushita Home Appliances Company, Lighting Company,
Matsushita Ecology Systems Co., Ltd.
MEW and PanaHome
Matsushita Electric Works, Ltd., PanaHome Corporation
Components and Devices
Semiconductor Company, Matsushita Battery Industrial Co., Ltd.,
Panasonic Electronic Devices Co., Ltd., Motor Company
Other
Panasonic Factory Solutions Co., Ltd., Matsushita Welding Systems
Co., Ltd.
From fiscal 2009, the name of "AVC Networks" was changed to
"Digital AVC Networks."
9. In a new phase of further growth, Panasonic has been
accelerating initiatives to achieve global excellence. From fiscal
2009 onward, in order to further clarify its business fields for
investors, Panasonic discloses three new business fields of the group
which consist of five segments as shown below. Sales and profits by
business fields are calculated as the simple total of business
segments making up each business field.
Digital AVC Networks Solution
Digital AVC Networks
Solutions for the Environment and Comfortable Living
Home Appliances, MEW and PanaHome
Devices and Industry Solution
Components and Devices, Other
10. Number of consolidated companies: 537 (including parent
company)
11. Number of companies reflected by the equity method: 137
-0-
*T
Supplemental Consolidated Financial Data for Fiscal 2009
Second Quarter and Six Months ended September 30, 2008
1. Sales breakdown
----------------------------------------------------------------------
yen (billions)
======================================================================
Total
----------------------
Fiscal 2009 Local
Second Quarter 09/08 currency
basis
09/08
======================================================================
Video and
Audio
Equipment 496.4 111% 116%
---------------------------------------
Information
and 497.2 90% 94%
Communications
Equipment
---------------------------------------
Digital AVC
Networks 993.6 100% 104%
----------------------------------------------------------------------
Home
Appliances 311.3 103% 106%
----------------------------------------------------------------------
MEW and
PanaHome 448.1 97% 98%
----------------------------------------------------------------------
Components and
Devices 272.6 90% 93%
----------------------------------------------------------------------
Other 166.1 93% 94%
======================================================================
Total 2,191.7 96% 99%
======================================================================
Supplemental Consolidated Financial Data for Fiscal 2009
Second Quarter and Six Months ended September 30, 2008
1. Sales breakdown
----------------------------------------------------------------------
yen (billions)
======================================================================
Domestic Overseas
------------- ----------------------
Fiscal 2009 Local
Second Quarter 09/08 09/08 currency
basis
09/08
======================================================================
Video and
Audio
Equipment 125.9 112% 370.5 111% 117%
----------------------------------------------------
Information
and 232.7 91% 264.5 90% 96%
Communications
Equipment
----------------------------------------------------
Digital AVC
Networks 358.6 97% 635.0 101% 107%
----------------------------------------------------------------------
Home
Appliances 167.4 105% 143.9 101% 107%
----------------------------------------------------------------------
MEW and
PanaHome 357.7 95% 90.4 106% 113%
----------------------------------------------------------------------
Components and
Devices 89.2 90% 183.4 91% 95%
----------------------------------------------------------------------
Other 92.5 100% 73.6 86% 89%
======================================================================
Total 1,065.4 96% 1,126.3 96% 101%
======================================================================
*T
-0-
*T
yen (billions)
======================================================================
Total
----------------------
Fiscal 2009 Six Months Local
ended September 30, 2008 09/08 currency
basis
09/08
======================================================================
Video and Audio Equipment 962.7 114% 119%
----------------------------------------------------------------------
Information and 1,006.3 94% 98%
Communications Equipment
----------------------------------------------------------------------
Digital AVC Networks 1,969.0 103% 107%
----------------------------------------------------------------------
Home Appliances 654.1 102% 106%
----------------------------------------------------------------------
MEW and PanaHome 837.2 99% 100%
----------------------------------------------------------------------
Components and Devices 541.9 92% 97%
----------------------------------------------------------------------
Other 341.5 98% 100%
======================================================================
Total 4,343.7 96% 99%
======================================================================
Note: The name of "AVC Networks" was changed to "Digital AVC Networks"
from fiscal 2009.
The name of "MEW and PanaHome" was as of September 30, 2008.
yen (billions)
======================================================================
Domestic Overseas
------------- ----------------------
Fiscal 2009 Six Months Local
ended September 30, 2008 09/08 09/08 currency
basis
09/08
======================================================================
Video and Audio Equipment 257.7 114% 705.0 113% 120%
----------------------------------------------------------------------
Information and 481.4 95% 524.9 93% 101%
Communications Equipment
----------------------------------------------------------------------
Digital AVC Networks 739.1 101% 1,229.9 104% 111%
----------------------------------------------------------------------
Home Appliances 340.6 102% 313.5 101% 109%
----------------------------------------------------------------------
MEW and PanaHome 662.2 96% 175.0 111% 120%
----------------------------------------------------------------------
Components and Devices 181.3 93% 360.6 92% 98%
----------------------------------------------------------------------
Other 187.4 99% 154.1 97% 101%
======================================================================
Total 2,110.6 96% 2,233.1 96% 102%
======================================================================
Note: The name of "AVC Networks" was changed to "Digital AVC Networks"
from fiscal 2009.
The name of "MEW and PanaHome" was as of September 30, 2008.
*T
-0-
*T
2. Overseas Sales by Region
----------------------------------------------------------------------
yen (billions)
======================================================================
Fiscal 2009 Second Fiscal 2009 Six Months
Quarter ended September 30,
2008
---------------------- ----------------------
Local Local
09/08 currency 09/08 currency
basis basis
09/08 09/08
======================================================================
North and South America 298.2 90% 98% 584.6 89% 99%
----------------------------------------------------------------------
Europe 281.7 97% 101% 575.4 95% 98%
----------------------------------------------------------------------
Asia 273.4 92% 99% 540.8 93% 101%
----------------------------------------------------------------------
China 273.0 106% 108% 532.3 108% 112%
======================================================================
Total 1,126.3 96% 101% 2,233.1 96% 102%
======================================================================
*T
-0-
*T
3. Sales by Products
----------------------------------------------------------------------
(Consolidated) yen (billions)
======================================================================
Fiscal 2009
-----------------------
Product Category Products Six Months
Second ended
Quarter September
30
-----------------------
Sales 09/08 Sales 09/08
======================================================================
VCRs 24.5 86% 49.3 88%
------------------------------------------
Digital cameras 62.7 95% 127.7 102%
------------------------------------------
TVs 295.8 124% 565.5 125%
-----------------------------------------
Plasma TVs 168.9 115% 318.4 116%
-----------------------------------------
LCD TVs 102.9 164% 198.8 166%
------------------------------------------
Digital AVC Networks DVD recorders 32.6 115% 64.3 114%
------------------------------------------
Audio equipment 26.5 76% 52.3 81%
------------------------------------------
Information
equipment 335.9 89% 660.4 91%
------------------------------------------
Communications
equipment 161.3 94% 345.9 100%
-----------------------------------------
Mobile
communications
equipment 74.8 97% 179.0 109%
======================================================================
Air conditioners 62.8 108% 163.4 103%
Home Appliances ------------------------------------------
Refrigerators 32.1 100% 63.2 103%
======================================================================
General
components 103.2 88% 208.8 90%
Components and Devices ------------------------------------------
Semiconductors * 121.8 103% 244.0 106%
------------------------------------------
Batteries 80.4 95% 152.4 95%
======================================================================
Other FA equipment 45.9 73% 102.5 89%
======================================================================
* Information for semiconductors is on a production basis.
Note: The name of "AVC Networks" was changed to "Digital AVC Networks"
from fiscal 2009.
*T
-0-
*T
4. Segment Information
----------------------------------------------------------------------
(Consolidated)
======================================================================
Fiscal 2009 Second Quarter
================================== =
Sales 09/08 Segment % of 09/08
Profit sales
======================================================================
Digital AVC Networks 1,056.5 99% 47.8 4.5% 67%
----------------------------------------------------------------------
Home Appliances 333.4 105% 15.4 4.6% 80%
----------------------------------------------------------------------
MEW and PanaHome 495.9 98% 25.3 5.1% 81%
----------------------------------------------------------------------
Components and Devices 335.7 92% 29.5 8.8% 95%
----------------------------------------------------------------------
Other 309.2 110% 14.9 4.8% 70%
======================================================================
Total 2,530.7 98% 132.9 5.3% 78%
======================================================================
Corporate and eliminations -339.0 - -14.3 - -
======================================================================
Consolidated total 2,191.7 96% 118.6 5.4% 81%
======================================================================
Note: The name of "AVC Networks" was changed to "Digital AVC Networks"
from fiscal 2009.
The name of "MEW and PanaHome" was as of September 30, 2008.
4. Segment Information
----------------------------------------------------------------------
(Consolidated) yen (billions)
======================================================================
Fiscal 2009 Six Months ended
September 30
===================================
Sales 09/08 Segment % of 09/08
Profit sales
======================================================================
Digital AVC Networks 2,102.9 102% 102.8 4.9% 93%
----------------------------------------------------------------------
Home Appliances 685.5 103% 46.9 6.8% 126%
----------------------------------------------------------------------
MEW and PanaHome 928.7 99% 35.8 3.9% 87%
----------------------------------------------------------------------
Components and Devices 670.2 94% 49.0 7.3% 99%
----------------------------------------------------------------------
Other 598.6 110% 28.8 4.8% 82%
======================================================================
Total 4,985.9 98% 263.3 5.3% 100%
======================================================================
Corporate and eliminations -642.2 - -35.1 - -
======================================================================
Consolidated total 4,343.7 96% 228.2 5.3% 104%
======================================================================
Note: The name of "AVC Networks" was changed to "Digital AVC Networks"
from fiscal 2009.
The name of "MEW and PanaHome" was as of September 30, 2008.
*T
-0-
*T
5. Financial data for the primary domain companies
----------------------------------------------------------------------
(Business domain company basis)
(Sales, Domain company profit (production division basis), and Capital
Investment * )
yen
Fiscal 2009 Second Quarter (billions)
======================================================================
Sales Domain company Capital
profit Investment
------------- ----------------- -----------
% of
09/08 09/08 Sales 09-08
======================================================================
Panasonic AVC Networks
Company 553.1 115% 21.5 65% 3.9% 59.2 +7.9
----------------------------------------------------------------------
Panasonic Mobile
Communications Co., Ltd. 90.4 93% 6.4 256% 7.1% 1.5 +0.5
----------------------------------------------------------------------
Panasonic Electronic
Devices Co., Ltd. 120.5 92% 8.1 71% 6.7% 9.7 +1.5
----------------------------------------------------------------------
Factory Automation
Business 51.1 75% 5.8 49% 11.4% 0.6 -1.1
======================================================================
yen
Fiscal 2009 Six Months ended September 30, 2008 (billions)
======================================================================
Sales Domain company Capital
profit Investment
------------- ----------------- -----------
% of
09/08 09/08 Sales 09-08
======================================================================
Panasonic AVC Networks
Company 1,083.0 115% 35.9 76% 3.3% 96.6 +19.6
----------------------------------------------------------------------
Panasonic Mobile
Communications Co., Ltd. 209.2 102% 21.3 2367% 10.2% 2.0 +0.5
----------------------------------------------------------------------
Panasonic Electronic
Devices Co., Ltd. 245.4 94% 17.1 83% 7.0% 19.0 +1.5
----------------------------------------------------------------------
Factory Automation
Business 112.0 89% 15.3 70% 13.7% 1.0 -1.5
======================================================================
* These figures are calculated on an accrual basis.
Note: The name of "Panasonic AVC Networks Company" was as of September
30, 2008.
*T
-0-
*T
6. Capital Investment by segments *
---------------------------------------------------------------------
(Consolidated) yen (billions)
======================================================================
Six Months ended
September 30, 2008
-------------------
09-08
======================================================================
Digital AVC Networks 122.0 +21.9
----------------------------------------------------------------------
Home Appliances 25.5 +2.9
----------------------------------------------------------------------
MEW and PanaHome 19.9 +1.1
----------------------------------------------------------------------
Components and Devices ** 58.4 -8.7
----------------------------------------------------------------------
Other 14.1 +8.5
----------------------------------------------------------------------
JVC - -3.0
----------------------------------------------------------------------
Total 239.9 +22.7
======================================================================
(** semiconductors only) (23.3) (-4.2)
* These figures are calculated on an accrual basis.
Note: The name of "AVC Networks" was changed to
"Digital AVC Networks" from fiscal 2009.
The name of "MEW and PanaHome" was as of September 30, 2008.
*T
-0-
*T
7. Foreign Currency Exchange Rates
----------------------------------------------------------------------
(Export Rates)
======================================================================
Fiscal 2008 Fiscal 2009
-------------------------- -------------------
Second Six Months Full Second Six Months
Quarter ended Year Quarter ended
September September
30 30
======================================================================
U.S. Dollars JPY
JPY 118 JPY 118 115 JPY 104 JPY 104
----------------------------------------------------------------------
Euro JPY
JPY 160 JPY 159 160 JPY 160 JPY 159
======================================================================
(Rates Used for Consolidation)
======================================================================
Fiscal 2008 Fiscal 2009
-------------------------- -------------------
Second Six Months Full Second Six Months
Quarter ended Year Quarter ended
September September
30 30
======================================================================
U.S. Dollars JPY
JPY 118 JPY 119 114 JPY 108 JPY 106
----------------------------------------------------------------------
Euro JPY
JPY 162 JPY 162 162 JPY 162 JPY 163
======================================================================
(Foreign Currency Transaction) * (billions)
======================================================================
Fiscal 2008 Fiscal 2009
-------------------------- -------------------
Second Six Months Full Second Six Months
Quarter ended Year Quarter ended
September September
30 30
======================================================================
U.S. Dollars US$0.6 US$1.2 US$2.5 US$1.0 US$1.5
----------------------------------------------------------------------
Euro EUR
EUR 0.3 EUR 0.6 1.2 EUR 0.4 EUR 0.8
======================================================================
* These figures are based on the net foreign exchange exposure of the
company.
*T
-0-
*T
8. Number of Employees
----------------------------------------------------------------------
(Consolidated) (persons)
======================================================================
End of End of End of End of
September March June September
2007 2008 2008 2008
======================================================================
Domestic 136,663 135,563 134,950 134,481
----------------------------------------------------------------------
Overseas 172,374 170,265 175,631 179,113
======================================================================
Total 309,037 305,828 310,581 313,594
======================================================================
*T
Quarterly segment information for the past two years is shown on
the company's website (http://panasonic.net/ir/).
Panasonic Corporation
Media Contacts:
Akira Kadota, +81-3-3578-1237 (Japan)
International PR
or
Panasonic News Bureau (Japan)
Tel: +81-3-3542-6205
or
Jim Reilly, +1-201-392-6067 (U.S.)
or
Anne Guennewig, +49-611-235-457 (Europe)
or
Investor Relations Contacts:
Kazuo Sasaki, +81-6-6908-1121 (Japan)
Investor Relations
or
Yoichi Nagata, +1-212-698-1362 (U.S.)
Panasonic Finance (America), Inc.
or
Hiroko Carvell, +44-20-7562-4400 (Europe)
Panasonic Finance (Europe) plc
Copyright Business Wire 2008
