Panasonic cuts profit outlook on slowing China demand
While the company blames the US trade war for shrinking business, the Tesla battery unit is a bright spot
Japan’s Panasonic cut its annual profit outlook after disappointing quarterly earnings it blamed on a slowing Chinese economy hit by a trade war with the US that hurt demand for auto components and factory equipment. Panasonic forecast an operating profit of ¥385bn for the year ending March, down from the previously predicted ¥425bn and missing the ¥420.25bn average of 18 analyst estimates polled by Refinitiv. “Demand for mechatronics, mostly motors, has plunged since November as our clients making equipment for smartphone factories cut their investment,” Panasonic CFO Hirokazu Umeda said at a briefing. China’s shrinking car market has crimped demand for automotive components, Panasonic said, while sales have also dropped for electronic devices used in air conditioners. Panasonic’s operating profit for the October-December quarter fell 19% to ¥97.6bn, far below the average ¥122.35bn estimate of eight analysts. The energy division, which includes its battery business with US electric...
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