Panasonic returns to profit in first quarter

TOKYO - Panasonic Corp Thursday reported a first-quarter net profit of 43.7 billion yen ($502 million), a turnaround from a 53-billion-yen net loss the previous year, and raised its full-year forecasts.

Japan’s largest maker of home appliances said sales, boosted by stronger demand for air conditioning units and flat-screen televisions, surged 35.2 percent to 2.16 trillion yen.

The Osaka-based company raised its net profit forecast for the full business year through March by 70 percent to 85 billion yen, from a net loss of 103.5 billion yen in the 2009-10 business year. It had earlier forecast a 50-billion-yen profit.

Sales are expected to increase by 20 percent year-on-year to 8.9 trillion yen, up from an earlier forecast of 8.8 trillion yen.

Panasonic also announced plans to take full control of its subsidiaries Sanyo Electric Co, a battery maker, and Panasonic Electric Works Co by April, in a bid to strengthen its presence in the energy technology sector.

Panasonic plans to finance the takeover by rasing 500 billion yen in new shares. The takeover is expected to cost Panasonic about 818.4 billion yen. It currently owns 50.5 percent of Sanyo Electric Co and 51 percent of Panasonic Electric Works.