Panasonic Shares Rise After the Company Has Operating Profit

Author: Hiroshi Suzuki

Feb. 5 (Bloomberg) -- Panasonic Corp., the world's largest maker of consumer electronics, rose the most in a week in Tokyo trading after the company made a profit from operations in the third quarter.

Panasonic added 1.6 percent to 1,109 yen as of 10:13 a.m. on the Tokyo Stock Exchange, the biggest gain since Jan. 29. The benchmark Nikkei 225 Stock Average fell 1.4 percent.

Operating profit fell 84 percent to 26.4 billion yen ($295 million) in the third quarter ended Dec. 31, based on figures derived from nine-month results Panasonic reported yesterday. The Osaka-based company also forecast operating profit, or sales minus the cost of goods sold and administrative expenses, of 60 billion yen for the year ending March 31.

"In the current global recession with slowing demand for consumer electronics, the fact that Panasonic had an operating profit deserves a high mark," Osamu Hirose, an analyst with Tokai Tokyo Research Center in Tokyo, said today by phone.

"While rival companies are all bearish about the outlook for the next fiscal year, Panasonic expects to make an operating profit."

The net loss will probably be 380 billion yen and sales may decline 15 percent in the year ending March 31, Panasonic said yesterday after share markets in Japan closed.