Panasonic profit plunges 42%

Write offs. They can hurt. So with out shuttering the factories in China and Mexico, profit seems to have been slightlu up. Not bad. Just in case the chicken littles come in

Not bad. Just in case the chicken littles come in.

elkarlo -- Wow, so the standard for major Japanese firms performance is now "not bad"? Guess the "Japanese Miracle" is officially dead, huh?

As regards to "chicken littles" coming in, there is no need for that, the article says it all:

Japan’s consumer electronics giants, including Sony and Sharp, have struggled with years of massive losses and are undergoing painful restructurings to recover as falling prices in the television business weigh on their bottom line.

Brands that were once in high demand in western countries are now also-rans.

There's no new boost from latest and greatest TV technologies on the horizon, 3D was a flop and 4K is not going anywhere. So it's not surprising that TV sales are poor.

jerseyboy

Not bad. Just in case the chicken littles come in.

elkarlo -- Wow, so the standard for major Japanese firms performance is now "not bad"? Guess the "Japanese Miracle" is officially dead, huh?

As regards to "chicken littles" coming in, there is no need for that, the article says it all:

Japan’s consumer electronics giants, including Sony and Sharp, have struggled with years of massive losses and are undergoing painful restructurings to recover as falling prices in the television business weigh on their bottom line.

Brands that were once in high demand in western countries are now also-rans.

So I see chicken little arrived.

The detail is here

The firm left unchanged its fiscal year to March profit forecast of 140 billion yen, pointing to strength in its energy and auto units, while a sharp drop in the yen also provided strong support.

You Japanophile's need to understand that putting Japan's performance in perspective, so that issues can be addressed, rather than ignored, is not being a "chicken little". But if you want to just be ignorent, and continue to bury your head in the sand, go for it. That is exactly how Sony, Sharp, Panasonic, etc. got in this predicament afterall.

I think few have pointed out already about the performance of those three you mentioned which is the money losing TV and general consumer electronics which is dragging their performance.

As I specifically addressed to you in another similar article, there are 8 large electronic firms in Japan with also the other three (namely, Toshiba, Hitachi, and Mitsubushi Electric) on verge of recording the highest profit.

http://www.nikkan.co.jp/news/nkx0320150204aaas.html

In summary, you got two contrasting performing companies within the "Japan's" industry.

I'm a big Panasonic fan and have many of their products. Their kitchen appliances are second to none. That said, Panasonic is a clear example of the old Japan Inc. trying to cling onto the days of old. It's too big & too inefficient. Let's try and learn from the past, shall we?

JAL - ridiculous pension / benefits system - sent them bankrupt Nissan - bloated hierarchy, too many madogiwas - similar to JAL, abolishment of keiretsu Daihatsu - again, abolishment of keiretsu to achieve efficiency & cost reduction

Panasonic is like a combination of all three. Japan Inc's biggest challenge is not shrinking local demand & globalisation, it's the staunch unwillingness to change old habits. The out of touch 'deck-shuffling' management at the top will stay on the same course, because they had to endure hell to get to where they are today. Their eventual replacements will do exactly the same, and the vicious cycle continues. It's particularly bad in the consumer electronics business because the industry moves so fast - which is something Japan Inc. cannot handle.

Sign. Panasonic, Toshiba, and Hitachi are all doing well(fantastically so). Why? They got away from consumer electronics(mainly TVs, cameras and the such). Sony and Sharp are still heavily exposed to consumer electronics and are still struggling. Hitachi is no longer going to make TVs, and their profits have been up, and doing great for the past few years. NEC just got out of the cell phone market, and are just now getting back into the black.

TVs are basically a commodity product now. Which is why Hitachi gets a huge amount of it's profits from power generation, people movers ie elevators and escalators, and auto parts.

People here could use reading a business report before posting. Staying informed goes a long way.

The detail is here

The firm left unchanged its fiscal year to March profit forecast of 140 billion yen, pointing to strength in its energy and auto units, while a sharp drop in the yen also provided strong support.

StormR -- did you read the entire article, or really take a minute to understand it? Yes, Panasonic has left its full-year earnings projection unchanged at JPY 140 billion. But that just happens to be the exact same amount it made in the first three quarters. So, according to you, making no money in the last quarter is a positive thing? Even with the help of a weak yen? Second, it will make a lousy 2.5% profit margin for those nine months, compared to Apple's near 40%.

As I specifically addressed to you in another similar article, there are 8 large electronic firms in Japan with also the other three (namely, Toshiba, Hitachi, and Mitsubushi Electric) on verge of recording the highest profit.

nigelboy -- whoopie. Three out of eight will make money -- helped in huge part by the government weakening the yen. So, in other words, at the expense of the average "Joe" who is paying more and more for imporated things, like food. And, even with their profits, the sector as a whole is still massively in the red, again, despite the weak yen. So, once again, the J-government has rushed to the aid of poorly performing, poorly managed companies, at the expense of the public. Do you like paying more for imported products to help Sony, Sharp, Panasonic, etc. bail themselves out of the TV market?

Call me a "chick little" if you so desire, if that means seeing the truth for what it is, rather than buying into the J-government/NHK PR nonsense. The world may not be falling in for Japanese electronics firms, but it could sure is in need of some of those life-support machines it makes.

nigelboy -- whoopie. Three out of eight will make money -- helped in huge part by the government weakening the yen. So, in other words, at the expense of the average "Joe" who is paying more and more for imporated things, like food. And, even with their profits, the sector as a whole is still massively in the red, again, despite the weak yen. So, once again, the J-government has rushed to the aid of poorly performing, poorly managed companies, at the expense of the public. Do you like paying more for imported products to help Sony, Sharp, Panasonic, etc. bail themselves out of the TV market?

Actually 6 out 8 will make money and the three that I mentioned will record it's highest profit ever. For some unknown reason, you revert to an argument of Japan's monetary policy to make another argument but I was simply correcting your view of the 'Japan's performance in perspective.'

Actually 6 out 8 will make money and the three that I mentioned will record it's highest profit ever. For some unknown reason, you revert to an argument of Japan's monetary policy to make another argument but I was simply correcting your view of the 'Japan's performance in perspective.'

LOl. I am not "reverting" to anything. I am simply looking at the big picture, not simply one element. You cannot intelligently discuss the improved profits some Japanese companies have enjoyed due to the weaker yen, without looking at the impact that policy has on the country as a whole. You, on the other hand, just want to continue to look through rose-colored glasses, and focus only on the headline. The J-government made a conscious decision to weaken the yen to try to help Japanese export-oriented companies, knowing full-well the potential trade-offs involved in that. I simply asked whether you think the "average Joe" is happy with that decision, since he likely does not work for one of these firms, nor holds any of their stock.

LOl. I am not "reverting" to anything.

You certainly did. You were discussing the performance of certain Japanese company as if this is the trend of the industry and the health of the 'Japanese' firms. And when I point out your fallacy, you revert to the 'macro'. Furthermore, why on god's earth are you also extending the discussing to 'average Joe? Make a coherent argument for a change.