Panasonic Manufacturing turns profitable

MANILA, Philippines - Listed appliance maker Panasonic Manufacturing Philippines Corp. turned around to a profitable performance in the April to December period.

In a regulatory filing, Panasonic said its profits hit P64.07 million in the nine months of its fiscal year 2012, reversing the P796,000 loss a year earlier.

Sales jumped 10.3 percent to P5 billion from P4.54 billion the previous period.

“Consolidated sales increased 10.3 percent due mainly to the increase in sales of home appliance products like refrigerator, freezer, airconditioner and washing machine with promotional activities and advertising of the products,” Panasonic said.

Selling expenses rose 8.1 percent to P920.97 million from P852.05 million due to the increase in direct selling and advertising expenses. Selling expenses are composed of commission, promotion, rebates and discounts; freight; advertising and provision for warranty costs.

Cost of sales grew at a slower pace, picking up 7.4 percent to P3.57 billion from P3.32 billion a year ago.

Panasonic said it benefited from “lower cost of imported materials and appreciation of the peso versus dollar.”

Last year, the peso gained around seven percent compared with the greenback. A strong peso, while making imports cheaper, also trims the value of dollar export earnings and remittances from overseas Filipinos when converted into local money.

Panasonic is a manufacturer, importer and distributor of electronic, electrical, mechanical, electro-mechanical appliances, other types of machinery. Panasonic was originally set up as Festival Manufacturing Corp. in 1963.

The firm has a manufacturing plant for refrigerators, electric fans, air-conditioners, washing machines and flashlights in Carmelray Industrial Park II in Laguna.

Early in 2009, the company stopped the operation of its battery unit in the municipality of Taytay in Rizal to cut operating costs.

Panasonic also holds a 40-percent stake in realty brokerage firm Precision Electronics Realty Corp.