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Announcement Of Financial Results: Panasonic Reports Second-Quarter And Six-Month Results

In fiscal 2013, the company previously announced on May 11, 2012, its forecast of a total dividend of 10.0 yen per common share to shareholders (5.0 yen each for interim and year-end dividends), considering the above policy and ensuring the stable return of profits to shareholders. However, the company now forecasts a significant net loss again following last fiscal year, while there is an urgent need to improve its financial position. Under such conditions, the Board of Directors of the company resolved today not to distribute dividends for the interim (semi-annual) for fiscal 2013. The year-end dividend for fiscal 2013 is also expected not to be distributed. The company regrets the need to undertake this revision. Though business conditions are expected to become much more severe, every possible effort will be made to improve both business and financial positions as soon as possible aiming for the stable return of profits to shareholders.

Panasonic Corporation is one of the world's leading manufacturers of electronic and electric products for consumer, business and industrial use. Panasonic's shares are listed on the Tokyo, Osaka, Nagoya and New York stock exchanges.

For more information, please visit the following web sites:

Panasonic home page URL: http://panasonic.net/

Panasonic IR web site URL: http://panasonic.net/ir/

Disclaimer Regarding Forward-Looking Statements

This press release includes forward-looking statements (within the meaning of Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934) about Panasonic and its Group companies (the Panasonic Group). To the extent that statements in this press release do not relate to historical or current facts, they constitute forward-looking statements. These forward-looking statements are based on the current assumptions and beliefs of the Panasonic Group in light of the information currently available to it, and involve known and unknown risks, uncertainties and other factors. Such risks, uncertainties and other factors may cause the Panasonic Group's actual results, performance, achievements or financial position to be materially different from any future results, performance, achievements or financial position expressed or implied by these forward-looking statements. Panasonic undertakes no obligation to publicly update any forward-looking statements after the date of this press release. Investors are advised to consult any further disclosures by Panasonic in its subsequent filings with the U.S. Securities and Exchange Commission pursuant to the U.S. Securities Exchange Act of 1934 and its other filings.

The risks, uncertainties and other factors referred to above include, but are not limited to, economic conditions, particularly consumer spending and corporate capital expenditures in the United States, Europe, Japan, China and other Asian countries; volatility in demand for electronic equipment and components from business and industrial customers, as well as consumers in many product and geographical markets; currency rate fluctuations, notably between the yen, the U.S. dollar, the euro, the Chinese yuan, Asian currencies and other currencies in which the Panasonic Group operates businesses, or in which assets and liabilities of the Panasonic Group are denominated; the possibility of the Panasonic Group incurring additional costs of raising funds, because of changes in the fund raising environment; the ability of the Panasonic Group to respond to rapid technological changes and changing consumer preferences with timely and cost-effective introductions of new products in markets that are highly competitive in terms of both price and technology; the possibility of not achieving expected results on the alliances or mergers and acquisitions including the business reorganization after the acquisition of all shares of Panasonic Electric Works Co., Ltd. and SANYO Electric Co., Ltd.; the ability of the Panasonic Group to achieve its business objectives through joint ventures and other collaborative agreements with other companies; the ability of the Panasonic Group to maintain competitive strength in many product and geographical areas; the possibility of incurring expenses resulting from any defects in products or services of the Panasonic Group; the possibility that the Panasonic Group may face intellectual property infringement claims by third parties; current and potential, direct and indirect restrictions imposed by other countries over trade, manufacturing, labor and operations; fluctuations in market prices of securities and other assets in which the Panasonic Group has holdings or changes in valuation of long-lived assets, including property, plant and equipment and goodwill, deferred tax assets and uncertain tax positions; future changes or revisions to accounting policies or accounting rules; as well as natural disasters including earthquakes, prevalence of infectious diseases throughout the world, disruption of supply chain and other events that may negatively impact business activities of the Panasonic Group. The factors listed above are not all-inclusive and further information is contained in Panasonic's latest annual reports, Form 20-F, and any other reports and documents which are on file with the U.S. Securities and Exchange Commission.

(Financial Tables and Additional Information Attached)

     
Panasonic Corporation

Consolidated Statements of Operations and

Consolidated Statements of Comprehensive Income (Loss) *

(Three months ended September 30)
 

Consolidated Statements of Operations

Yen (millions)

Percentage

2012

2011

2012/2011

Net sales

¥

1,823,662

¥

2,075,650

88 %
Cost of sales (1,359,018 ) (1,538,814 )
Selling, general and
administrative expenses (415,881 ) (494,813 )
Interest income 2,343 3,310
Dividends received 310 999
Interest expense (6,456 ) (6,827 )
Expenses associated with
the implementation of
early retirement programs * (14,091 ) (19,738 )
Other income (deductions), net *   (347,365 )   (161,677 )
Income (loss) before income taxes (316,496 ) (141,910 ) --
Provision for income taxes (383,968 ) 18,808
Equity in earnings of
associated companies   1,915     2,569  
Net income (loss) (698,549 ) (120,533 ) --
Less net income (loss) attributable to
noncontrolling interests   (570 )   (14,733 )
Net income (loss) attributable to
Panasonic Corporation

¥

(697,979

)

¥

(105,800

)

--
Net income (loss) attributable to
Panasonic Corporation, basic
per common share (301.93) yen (45.75) yen
per ADS (301.93) yen (45.75) yen
Net income (loss) attributable to
Panasonic Corporation, diluted
per common share * -- --
per ADS * -- --
 

Supplementary Information * >

Depreciation (tangible assets)

¥

69,779

¥

75,394

Capital investment **

¥

86,312

¥

85,581

R&D expenditures

¥

125,983

¥

134,670

Number of employees (September 30) 321,896 360,700
 

Consolidated Statements of Comprehensive Income (Loss)

Yen (millions)

Percentage

2012

2011

2012/2011

Net income (loss)

¥

(698,549

)

¥

(120,533

)

--
Other comprehensive income (loss), net of tax
Translation adjustments (16,405 ) (77,110 )
Unrealized holding gains (losses)
of available-for-sale securities (4,591 ) (32,850 )
Unrealized gains (losses) of
derivative instruments (421 ) 198
Pension liability adjustments   894     3,971  
  (20,523 )   (105,791 )
Comprehensive income (loss) (719,072 ) (226,324 ) --
Less comprehensive income (loss) attributable to
noncontrolling interests   (1,500 )   (19,594 )
Comprehensive income (loss)
attributable to Panasonic Corporation

¥

(717,572

)

¥

(206,730

)

--
 
(Parentheses indicate expenses, deductions or losses.)
 

* See Notes to consolidated financial statements.

** These figures are calculated on an accrual basis.
 
     
Panasonic Corporation

Consolidated Statements of Operations and

Consolidated Statements of Comprehensive Income (Loss) *

(Six months ended September 30)
 

Consolidated Statements of Operations

Yen (millions)

Percentage

2012

2011

2012/2011

Net sales

¥

3,638,160

¥

4,005,198

91 %
Cost of sales (2,710,013 ) (2,994,321 )
Selling, general and
administrative expenses (840,781 ) (963,278 )
Interest income 5,146 6,736
Dividends received 2,538 3,814
Interest expense (12,082 ) (14,172 )
Expenses associated with
the implementation of
early retirement programs * (14,483 ) (23,309 )
Other income (deductions), net *   (347,156 )   (180,011 )
Income (loss) before income taxes (278,671 ) (159,343 ) --
Provision for income taxes (411,421 ) 1,355
Equity in earnings of
associated companies   2,618     4,831  
Net income (loss) (687,474 ) (153,157 ) --
Less net income (loss) attributable to
noncontrolling interests   (2,304 )   (17,006 )
Net income (loss) attributable to
Panasonic Corporation

¥

(685,170

)

¥

(136,151

)

--
Net income (loss) attributable to
Panasonic Corporation, basic
per common share (296.39) yen (58.88) yen
per ADS (296.39) yen (58.88) yen
Net income (loss) attributable to
Panasonic Corporation, diluted
per common share * -- --
per ADS * -- --
 

Supplementary Information * >

Depreciation (tangible assets)

¥

137,616

¥

150,265

Capital investment **

¥

156,898

¥

149,521

R&D expenditures

¥

248,473

¥

266,851

Number of employees (September 30) 321,896 360,700
 

Consolidated Statements of Comprehensive Income (Loss)

Yen (millions)

Percentage

2012

2011

2012/2011

Net income (loss)

¥

(687,474

)

¥

(153,157

)

--
Other comprehensive income (loss), net of tax
Translation adjustments (67,152 ) (105,437 )
Unrealized holding gains (losses)
of available-for-sale securities (30,834 ) (34,736 )
Unrealized gains (losses) of
derivative instruments 4,764 1,657
Pension liability adjustments   5,351     6,756  
  (87,871 )   (131,760 )
Comprehensive income (loss) (775,345 ) (284,917 ) --
Less comprehensive income (loss) attributable to
noncontrolling interests   (6,811 )   (23,272 )
Comprehensive income (loss)
attributable to Panasonic Corporation

¥

(768,534

)

¥

(261,645

)

--
 
(Parentheses indicate expenses, deductions or losses.)
 

* See Notes to consolidated financial statements.

** These figures are calculated on an accrual basis.
 
   
Panasonic Corporation

Consolidated Balance Sheets **

September 30, 2012
With comparative figures for March 31, 2012
 

Yen (millions)

Assets

Sept. 30, 2012

March 31, 2012

Current assets:
Cash and cash equivalents

¥

443,899

¥

574,411

Time deposits 27,469 36,575
Short-term investments 461 483
Trade receivables:
Notes 81,340 73,044
Accounts 909,674 963,202
Allowance for doubtful receivables (24,221 ) (26,604 )
Inventories 851,730 801,991
Other current assets   309,185     454,663  
Total current assets   2,599,537     2,877,765  
Investments and advances 349,053 451,879
Property, plant and equipment,
net of accumulated depreciation 1,728,015 1,762,558
Other assets   923,146     1,508,853  
Total assets

¥

5,599,751

 

¥

6,601,055

 
 

Liabilities and Equity

Current liabilities:
Short-term debt, including current portion
of long-term debt

¥

653,519

¥

633,847

Trade payables:
Notes 55,183 53,243
Accounts 758,907 797,770
Other current liabilities   1,278,366     1,394,644  
Total current liabilities   2,745,975     2,879,504  
Noncurrent liabilities:
Long-term debt 908,135 941,768
Other long-term liabilities   761,385     802,217  
Total noncurrent liabilities   1,669,520     1,743,985  
Total liabilities   4,415,495     4,623,489  
Panasonic Corporation shareholders' equity:
Common stock 258,740 258,740
Capital surplus 1,117,480 1,117,530
Legal reserve 95,544 94,512
Retained earnings 743,407 1,441,177
Accumulated other
comprehensive income (loss) * (818,519 ) (735,155 )
Treasury stock, at cost   (247,021 )   (247,018 )
Total Panasonic Corporation shareholders' equity   1,149,631     1,929,786  
Noncontrolling interests   34,625     47,780  
Total equity   1,184,256     1,977,566  
Total liabilities and equity

¥

5,599,751

 

¥

6,601,055

 
 
* Accumulated other comprehensive income (loss) breakdown:
 
 

Yen (millions)

Sept. 30, 2012

March 31, 2012

Cumulative translation adjustments

¥

(544,799

)

¥

(482,168

)

Unrealized holding gains (losses) of
available-for-sale securities (17,513 ) 13,283
Unrealized gains (losses) of derivative instruments 1,036 (3,728 )
Pension liability adjustments (257,243 ) (262,542 )
 

** See Notes to consolidated financial statements.

 
     
Panasonic Corporation

Consolidated Information by Segment *

(Six months ended September 30)

By Segment:

Yen (billions)

Percentage
[Sales]

2012

2011

2012/2011

AVC Networks

¥

690.0

¥

913.6

76 %
Appliances 814.0 801.1 102 %
Systems & Communications 357.3 405.2 88 %
Eco Solutions 740.3 742.6 100 %
Automotive Systems 382.7 277.6 138 %
Industrial Devices 693.6 751.7 92 %
Energy 292.5 307.7 95 %
Other   698.3     985.3   71 %
Subtotal 4,668.7 5,184.8 90 %
Eliminations   (1,030.5 )   (1,179.6 ) --
Consolidated total

¥

3,638.2

 

¥

4,005.2

  91 %
 
[Segment Profit (Loss)]*
AVC Networks

¥

19.9

¥

(15.7

)

--
Appliances 51.0 52.8 97 %
Systems & Communications (10.0 ) (6.6 ) --
Eco Solutions 18.6 19.4 96 %
Automotive Systems 8.7 0.7 1211 %
Industrial Devices 17.9 (0.6 ) --
Energy 2.8 (9.8 ) --
Other   9.4     14.7   64 %
Subtotal 118.3 54.9 215 %
Corporate and eliminations   (30.9 )   (7.3 ) --
Consolidated total

¥

87.4

 

¥

47.6

  184 %
 

* See Notes to consolidated financial statements.

 
   
Panasonic Corporation

Consolidated Statements of Cash Flows *

(Six months ended September 30)
 

Yen (millions)

2012

2011

Cash flows from operating activities:

Net income (loss)

¥

(687,474

)

¥

(153,157

)

Adjustments to reconcile net income (loss) to
net cash provided by operating activities:
Depreciation and amortization 170,063 191,418
Net (gain) loss on sale of investments (7,707 ) 1,159
Cash effects of changes in, excluding acquisition:
Trade receivables 14,452 (31,750 )
Inventories (74,760 ) (66,583 )
Trade payables 862 (936 )
Retirement and severance benefits (3,821 ) (7,880 )
Other   608,702     86,878  
Net cash provided by operating activities   20,317     19,149  
 

Cash flows from investing activities:

Proceeds from disposition of investments
and advances 57,586 21,809
Increase in investments and advances (1,899 ) (3,242 )
Capital expenditures (175,553 ) (191,476 )
Proceeds from disposals of property, plant and equipment 46,625 33,639
(Increase) decrease in time deposits 7,599 14,251
Other   (14,236 )   (5,031 )
Net cash used in investing activities   (79,878 )   (130,050 )
 

Cash flows from financing activities:

Increase (decrease) in short-term debt 17,654 15,006
Increase (decrease) in long-term debt (44,112 ) (75,129 )
Dividends paid to Panasonic Corporation shareholders (11,559 ) (10,351 )
Dividends paid to noncontrolling interests (7,918 ) (7,589 )
(Increase) decrease in treasury stock (12 ) (9 )
Purchase of noncontrolling interests and Other   (499 )   (5,013 )
Net cash used in financing activities   (46,446 )   (83,085 )
 
Effect of exchange rate changes on cash
and cash equivalents   (24,505 )   (40,245 )
Net increase (decrease) in cash and cash equivalents (130,512 ) (234,231 )
Cash and cash equivalents at beginning of period   574,411     974,826  
Cash and cash equivalents at end of period

¥

443,899

 

¥

740,595

 
 

* See Notes to consolidated financial statements.

 

Notes to consolidated financial statements:

1.   The company's consolidated financial statements are prepared in conformity with U.S. generally accepted accounting principles (U.S. GAAP).
 
2. In order to be consistent with generally accepted financial reporting practices in Japan, operating profit, a non-GAAP measure, is presented as net sales less cost of sales and selling, general and administrative expenses. The company believes that this is useful to investors in comparing the company's financial results with those of other Japanese companies. Please refer to the accompanying consolidated statement of operations and Note 3 for the U.S. GAAP reconciliation.
 
3. In accordance with U.S. GAAP, expenses associated with the implementation of early retirement programs at certain domestic and overseas companies and the impairment loss on goodwill and fixed assets are included as part of operating profit in the statement of operations.
 
4. In June 2011, FASB issued Accounting Standards Update (ASU) 2011-05, "Presentation of Comprehensive Income." Accordingly, the company adopted ASU 2011-05 from fiscal 2013 and presents the consolidated statement of comprehensive income (loss) following the consolidated statement of operations.
 
5. In other income (deductions), the company incurred expenses associated with the implementation of early retirement programs of certain domestic and overseas companies.
 
6. The impairment losses of goodwill and intangible assets are included in Other income (deductions), net.
 
7. The impairment losses of goodwill and intangible assets, and an increase in the valuation allowances to deferred tax assets are included in Other of cash flows from operating activities.
 
8. Diluted net income (loss) per share attributable to Panasonic Corporation common shareholders has been omitted because the company did not have potential common shares that were outstanding for the period.
 
9. Regarding consolidated segment profit (loss), expenses for basic research and administrative expenses at the corporate headquarters level are treated as unallocatable expenses for each segment, and are included in Corporate and eliminations.
 
10. Panasonic Electronic Devices Co., Ltd. and Panasonic Electronic Devices Japan Co., Ltd., were absorbed by the company on April 1, 2012.
 
11. Effective from the beginning of fiscal 2013, investments and depreciation expenses in molding dies are included in "Capital investment" and "Depreciation (tangible assets)," respectively. Accordingly, the amounts of "Depreciation (tangible assets)" and "Capital investment" of supplementary information on consolidated statements of operations for fiscal 2012 are changed. The related amounts of the consolidated statements of cash flows and consolidated balance sheets for fiscal 2012 are also changed.
 
12. Based on the board of directors meeting held on September 28, 2012, the company resolved to issue unsecured straight bonds up to 150.0 billion yen in order to enhance the stability of financial position with long-term stabilization of debt. The company plans to issue the bonds through public offering in Japan for the purpose of redemption of commercial paper and bonds.
 
13. The board of directors of the company, held on September 28, 2012, resolved to set a credit line in order to secure the measures for stability of funds. Accordingly the company signed agreements with several banks as of October 1, 2012. Total amount of unsecured line of credit on this agreement is 600.0 billion yen.
 
14. The company's segments are classified according to a business domain-based management system, which focuses on global consolidated management by each business domain company, in order to ensure consistency of its internal management structure and disclosure.
 
The company restructured its Group organization on January 1, 2012, resulting in the number of reportable segments from six to eight. Accordingly, segment information for the six months ended September 30, 2011 has been reclassified to conform to the presentation for the six months ended September 30, 2012.
 
Other segment consists of Healthcare Company, Manufacturing Solutions Company, PanaHome Corporation and others.
 
15. Number of consolidated companies: 561 (including parent company)
 
16. Number of associated companies under the equity method: 101
 
 
                   

Supplemental Consolidated Financial Data for Fiscal 2013Second Quarter and Six Months ended September 30, 2012

 

1. Segment Information

yen (billions)
Fiscal 2013 Second Quarter Fiscal 2013 Six Months ended September 30, 2012
  Sales   13/12

SegmentProfit

  % of sales   13/12 Sales   13/12

SegmentProfit

  % of sales   13/12
AVC Networks 330 .3   71 % 12 .5   3 .8%   -   690 .0   76 % 19 .9   2 .9%   -  
Appliances 382 .6   100 % 13 .6   3 .6%   76 % 814 .0   102 % 51 .0   6 .3%   97 %
Systems & Communications 192 .8   86 % -1 .7   -0 .9%   -   357 .3   88 % -10 .0   -2 .8%   -  
Eco Solutions 385 .1   100 % 14 .7   3 .8%   111 % 740 .3   100 % 18 .6   2 .5%   96 %
Automotive Systems 192 .0   116 % 4 .5   2 .3%   102 % 382 .7   138 % 8 .7   2 .3%   1211 %
Industrial Devices 355 .4   92 % 10 .6   3 .0%   523 % 693 .6   92 % 17 .9   2 .6%   -  
Energy 149 .9   92 % 2 .7   1 .8%   -   292 .5   95 % 2 .8   0 .9%   -  
Other 354 .8   71 % 5 .3   1 .5%   49 % 698 .3   71 % 9 .4   1 .3%   64 %
Total 2,342 .9   88 % 62 .2   2 .7%   165 % 4,668 .7   90 % 118 .3   2 .5%   215 %
Corporate and eliminations -519 .2   -   -13 .4   -     -   -1,030 .5   -   -30 .9   -     -  
Consolidated total   1,823 .7   88 %   48 .8   2 .7%   116 %   3,638 .2   91 %   87 .4   2 .4%   184 %
 
 

2. Domain Companies' Information

(Business domain company basis)

< Sales and Domain Company Profit >

yen (billions)
Fiscal 2013 Second Quarter Fiscal 2013 Six Months ended September 30, 2012
  Sales   13/12

DomainCompanyProfit

  % of sales   13/12 Sales   13/12

DomainCompanyProfit

  % of sales   13/12
Healthcare Company 33 .0   94 % 2 .1   6 .4%   98 % 65 .3   98 % 3 .9   6 .0%   130 %
Manufacturing Solutions Company   37 .5   81 %   5 .0   13 .3%   64 %   82 .1   88 %   11 .3   13 .8%   78 %
Note: Healthcare Company and Manufacturing Solutions Company are included in Other segment.
 
             

3. Sales by Region

yen (billions)
 
Fiscal 2013 Second Quarter

Fiscal 2013 Six Months endedSeptember 30, 2012

           
        13/12  

Local currencybasis 13/12

    13/12  

Local currencybasis 13/12

  Domestic 956 .1   89 %   -   1,878 .2   92 %   -  
Overseas 867 .6   86 %   88 % 1,760 .0   89 %   93 %
North and South America 242 .6   99 %   100 % 486 .6   101 %   103 %
Europe 152 .2   81 %   89 % 320 .4   83 %   93 %
Asia 210 .9   81 %   83 % 438 .4   85 %   89 %
  China 261 .9   83 %   82 % 514 .6   88 %   88 %
  Total   1,823 .7   88 %   89 %   3,638 .2   91 %   92 %
 
       

4. Sales by Products

yen (billions)
 
Fiscal 2013 Second Quarter

Fiscal 2013 Six Months endedSeptember 30, 2012

   
     

13/12  *

   

13/12  *

LCD TVs 95 .9   84 % 188 .2   87 %
Plasma TVs 34 .8   43 % 77 .2   48 %
Digital cameras 26 .3   63 % 60 .9   71 %
BD recorders / players 10 .5   37 % 23 .5   38 %
Air conditioners 63 .7   84 % 166 .2   93 %
Washing machines and clothes dryers 39 .4   112 % 75 .3   114 %
Refrigerators 43 .1   114 % 82 .8   117 %
Electronic components and materials 163 .8   95 % 329 .9   99 %
Semiconductors   37 .9   93 %   75 .5   92 %

*

 

The company restructured its Group organization on January 1, 2012. Accordingly, the company reclassified the figures of fiscal 2012 included in the prior segments of PEW and PanaHome, and SANYO.

 

5. Capital Investment by Segments *

yen (billions)
       
Fiscal 2013 Second Quarter

Fiscal 2013 Six Months endedSeptember 30, 2012

   
      13-12     13-12
AVC Networks 13 .9   -5 .7 22 .1   -7 .9
Appliances 11 .9   -0 .8 23 .3   +1 .2
Systems & Communications 2 .5   -0 .8 4 .3   -2 .0
Eco Solutions 7 .4   -1 .1 15 .2   -1 .3
Automotive Systems 2 .6   +0 .9 4 .5   +1 .3
Industrial Devices 22 .4   +3 .9 41 .1   +5 .7
Energy 19 .8   +6 .6 36 .3   +15 .4
Other 5 .8   -2 .3 10 .1   -5 .0
Total   86 .3   +0 .7   156 .9   +7 .4

* These figures are calculated on an accrual basis.

Note:

 

Effective from the beginning of fiscal 2013, investments in molding dies are included in "Capital investment."Accordingly, the amounts of "Capital Investment" for fiscal 2012 are changed.

 
         

6. Foreign Currency Exchange Rates/Transaction

< Export Rates >

 

Fiscal 20122nd quarter

 

Six Months endedSeptember 30, 2012

 

Fiscal 2012Full Year

Fiscal 20132nd quarter

 

Six Months endedSeptember 30, 2013

U.S. Dollars ¥81   ¥81   ¥80 ¥80   ¥79
Euro   ¥115   ¥114   ¥111   ¥104   ¥103
 

< Rates Used for Consolidation >

 

Fiscal 20122nd quarter

 

Six Months endedSeptember 30, 2012

 

Fiscal 2012Full Year

Fiscal 20132nd quarter

 

Six Months endedSeptember 30, 2013

U.S. Dollars ¥78   ¥80   ¥79 ¥79   ¥80
Euro   ¥110   ¥114   ¥109   ¥98   ¥101
 

< Foreign Currency Transaction >

 

Fiscal 20122nd quarter

 

Six Months endedSeptember 30, 2012

 

Fiscal 2012Full Year

Fiscal 20132nd quarter

 

Six Months endedSeptember 30, 2013

U.S. Dollars US$0.9 billion   US$1.8 billion   US$3.0 billion US$0.6 billion   US$1.2 billion
Euro   €0.4 billion   €0.8 billion   €1.7 billion   €0.5 billion   €0.9 billion
 

7. Number of Employees

(persons)
  End of Sept. 2011 End of March 2012 End of June 2012 End of Sept. 2012
Domestic 143,321 133,605 132,815 131,143
Overseas 217,379 197,162 194,697 190,753
Total   360,700   330,767   327,512   321,896
 
                   

8. Fiscal 2013 Annual Forecasts

(1) Segment Information

yen (billions)
Fiscal 2013 Forecast (as of May 11, 2012) Fiscal 2013 Forecast (as of October 31, 2012)
  Sales   13/12

SegmentProfit

  % of sales   13/12 Sales   13/12

SegmentProfit

  % of sales   13/12
AVC Networks 1,730 .0   101 % 60 .0   3 .5%   -   1,410 .0   82 % 22 .0   1 .6%   -  
Appliances 1,630 .0   106 % 100 .0   6 .1%   123 % 1,540 .0   100 % 82 .0   5 .3%   101 %
Systems & Communications 900 .0   107 % 24 .0   2 .7%   138 % 790 .0   94 % 9 .0   1 .1%   52 %
Eco Solutions 1,600 .0   105 % 60 .0   3 .8%   102 % 1,560 .0   102 % 55 .0   3 .5%   93 %
Automotive Systems 720 .0   110 % 18 .0   2 .5%   364 % 740 .0   113 % 13 .0   1 .8%   263 %
Industrial Devices 1,420 .0   101 % 40 .0   2 .8%   -   1,350 .0   96 % 23 .0   1 .7%   -  
Energy 660 .0   107 % 3 .0   0 .5%   -   580 .0   94 % 0 .0   0 .0%   -  
Other 1,660 .0   88 % 24 .0   1 .4%   102 % 1,420 .0   75 % 10 .0   0 .7%   42 %
Total 10,320 .0   101 % 329 .0   3 .2%   407 % 9,390 .0   92 % 214 .0   2 .3%   265 %
Corporate and eliminations -2,220 .0   -   -69 .0   -     -   -2,090 .0   -   -74 .0   -     -  
Consolidated total   8,100 .0   103 %   260 .0   3 .2%   595 %   7,300 .0   93 %   140 .0   1 .9%   320 %
 
 

(2) Domain Companies' Information

(Business domain company basis)

< Sales and Domain Company Profit >

yen (billions)
Fiscal 2013 Forecast (as of May 11, 2012) Fiscal 2013 Forecast (as of October 31, 2012)
  Sales   13/12

DomainCompanyProfit

  % of sales   13/12 Sales   13/12

DomainCompanyProfit

  % of sales   13/12
Healthcare Company 139 .8   105 % 9 .1   6 .5%   103 % 135 .6   102 % 8 .3   6 .1%   92 %
Manufacturing Solutions Company   186 .0   116 %   29 .0   15 .6%   116 %   143 .8   90 %   14 .8   10 .3%   59 %
Note: Healthcare Company and Manufacturing Solutions Company are included in Other segment.
 
             

(3) Sales by Region

yen (billions)
 

Fiscal 2013 Forecast(as of May 11, 2012)

Fiscal 2013 Forecast(as of Oct. 31, 2012)

           
      13/12  

Local currencybasis 13/12

    13/12  

Local currencybasis 13/12

  Domestic 4,250 .0   102 %   -   3,900 .0   94 %   -  
Overseas 3,850 .0   105 %   107 % 3,400 .0   92 %   95 %
North and South America 970 .0   100 %   103 % 930 .0   96 %   98 %
Europe 730 .0   98 %   102 % 600 .0   81 %   88 %
Asia 1,000 .0   107 %   111 % 900 .0   97 %   100 %
  China 1,150 .0   110 %   111 % 970 .0   93 %   93 %
  Total   8,100 .0   103 %   105 %   7,300 .0   93 %   94 %
 

 

       

(4) Capital Investment, Depreciation, R&D Expenditures

Capital Investment by Segments *

yen (billions)
 

Fiscal 2013 Forecast(as of July 31, 2012)

Fiscal 2013 Forecast(as of October 31, 2012)

   
      13-12     13-12
AVC Networks 69 .0   +8 .6 66 .0   +5 .6
Appliances 55 .0   +3 .6 54 .0   +2 .6
Systems & Communications 11 .0   -2 .3 9 .0   -4 .3
Eco Solutions 27 .0   -6 .1 27 .0   -6 .1
Automotive Systems 10 .0   +1 .1 10 .0   +1 .1
Industrial Devices 72 .0   -6 .1 67 .0   -11 .1
Energy 86 .0   +32 .2 80 .0   +26 .2
Other 30 .0   -4 .7 27 .0   -7 .7
Consolidated total   360 .0   +26 .3   340 .0   +6 .3
* These figures are calculated on an accrual basis.
 
             

Depreciation (tangible assets)

yen (billions)

R&D Expenditures

  yen (billions)
 

Fiscal 2013 Forecast(as of July 31, 2012)

Fiscal 2013 Forecast(as of October 31, 2012)

Fiscal 2013 Forecast(as of May 11, 2012)

Fiscal 2013 Forecast(as of October 31, 2012)

       
    13-12     13-12     13-12     13-12
300 .0   +4 .2   295 .0   -0 .8 510 .0   -10 .2   490 .0   -30 .2
 
         

(5) Foreign Currency Exchange Rates/Transaction

 
    Rates Used for Consolidation Foreign Currency Transaction
   

Fiscal 2013Forecast(as of May 11,2012)

 

Fiscal 2013Forecast(as of October31, 2012)

Fiscal 2013Forecast(as of May 11,2012)

 

Fiscal 2013Forecast(as of October31, 2012)

U.S. Dollars   ¥78   ¥79 US$2.5 billion   US$2.5 billion
Euro     ¥103   ¥99   €2.0 billion   €2.0 billion
 
 
Disclaimer Regarding Forward-Looking Statements
This document includes forward-looking statements (within the meaning of Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934) about Panasonic and its Group companies (the Panasonic Group). To the extent that statements in this document do not relate to historical or current facts, they constitute forward-looking statements. These forward-looking statements are based on the current assumptions and beliefs of the Panasonic Group in light of the information currently available to it, and involve known and unknown risks, uncertainties and other factors. Such risks, uncertainties and other factors may cause the Panasonic Group's actual results, performance, achievements or financial position to be materially different from any future results, performance, achievements or financial position expressed or implied by these forward-looking statements. Panasonic undertakes no obligation to publicly update any forward-looking statements after the date of this document. Investors are advised to consult any further disclosures by Panasonic in its subsequent filings with the U.S. Securities and Exchange Commission pursuant to the U.S. Securities Exchange Act of 1934 and its other filings.
The risks, uncertainties and other factors referred to above include, but are not limited to, economic conditions, particularly consumer spending and corporate capital expenditures in the United States, Europe, Japan, China, and other Asian countries; volatility in demand for electronic equipment and components from business and industrial customers, as well as consumers in many product and geographical markets; currency rate fluctuations, notably between the yen, the U.S. dollar, the euro, the Chinese yuan, Asian currencies and other currencies in which the Panasonic Group operates businesses, or in which assets and liabilities of the Panasonic Group are denominated; the possibility of the Panasonic Group incurring additional costs of raising funds, because of changes in the fund raising environment; the ability of the Panasonic Group to respond to rapid technological changes and changing consumer preferences with timely and cost-effective introductions of new products in markets that are highly competitive in terms of both price and technology; the possibility of not achieving expected results on the alliances or mergers and acquisitions including the business reorganization after the acquisition of all shares of Panasonic Electric Works Co., Ltd. and SANYO Electric Co., Ltd.; the ability of the Panasonic Group to achieve its business objectives through joint ventures and other collaborative agreements with other companies; the ability of the Panasonic Group to maintain competitive strength in many product and geographical areas; the possibility of incurring expenses resulting from any defects in products or services of the Panasonic Group; the possibility that the Panasonic Group may face intellectual property infringement claims by third parties; current and potential, direct and indirect restrictions imposed by other countries over trade, manufacturing, labor and operations; fluctuations in market prices of securities and other assets in which the Panasonic Group has holdings or changes in valuation of long-lived assets, including property, plant and equipment and goodwill, deferred tax assets and uncertain tax positions; future changes or revisions to accounting policies or accounting rules; as well as natural disasters including earthquakes, prevalence of infectious diseases throughout the world, disruption of supply chain and other events that may negatively impact business activities of the Panasonic Group.

The factors listed above are not all-inclusive and further information is contained in Panasonic's latest annual reports, Form 20-F, and any other reports and documents which are on file with the U.S. Securities and Exchange Commission.

 
   

< Attachment 1 > Reference

Segment information for fiscal 2013

 

Sales

yen(billions)
  1st quarter

(Apr.-June)

2nd quarter

(July -Sept.)

AVC Networks 359 .7 330 .3
Appliances 431 .4 382 .6
Systems & Communications 164 .5 192 .8
Eco Solutions 355 .2 385 .1
Automotive Systems 190 .7 192 .0
Industrial Devices 338 .2 355 .4
Energy 142 .6 149 .9
Other 343 .5 354 .8
Total 2,325 .8 2,342 .9
Eliminations -511 .3 -519 .2
Consolidated total   1,814 .5   1,823 .7
 
 

Segment profit

yen(billions)
  1st quarter

(Apr.-June)

2nd quarter

(July -Sept.)

AVC Networks 7 .4 12 .5
Appliances 37 .4 13 .6
Systems & Communications -8 .3 -1 .7
Eco Solutions 3 .9 14 .7
Automotive Systems 4 .2 4 .5
Industrial Devices 7 .3 10 .6
Energy 0 .1 2 .7
Other 4 .1 5 .3
Total 56 .1 62 .2
Corporate and eliminations -17 .5 -13 .4
Consolidated total   38 .6   48 .8
 
         

< Attachment 2 > Reference

Segment information for fiscal 2012

 

Sales

yen(billions)
  1st quarter

(Apr.-June)

2nd quarter

(July -Sep.)

3rd quarter

(Oct.-Dec.)

4th quarter

(Jan.-Mar.)

Fiscal 2012

(Apr.-Mar.)

AVC Networks 449 .9 463 .7 488 .5 311 .4 1,713 .5
Appliances 417 .7 383 .4 386 .3 346 .8 1,534 .2
Systems & Communications 181 .6 223 .6 194 .7 240 .9 840 .8
Eco Solutions 356 .5 386 .1 394 .0 389 .2 1,525 .8
Automotive Systems 111 .7 165 .9 169 .2 206 .4 653 .2
Industrial Devices 364 .0 387 .7 333 .8 319 .1 1,404 .6
Energy 145 .1 162 .6 154 .1 153 .1 614 .9
Other 484 .5 500 .8 418 .2 477 .4 1,880 .9
Total 2,511 .0 2,673 .8 2,538 .8 2,444 .3 10,167 .9
Eliminations -581 .5 -598 .1 -578 .6 -563 .5 -2,321 .7
Consolidated total   1,929 .5   2,075 .7   1,960 .2   1,880 .8   7,846 .2
 
 

Segment profit

yen(billions)
  1st quarter

(Apr.-June)

2nd quarter

(July -Sep.)

3rd quarter

(Oct.-Dec.)

4th quarter

(Jan.-Mar.)

Fiscal 2012

(Apr.-Mar.)

AVC Networks -3 .8 -11 .9 -24 .8 -27 .3 -67 .8
Appliances 34 .9 17 .9 23 .6 5 .1 81 .5
Systems & Communications -9 .9 3 .3 4 .3 19 .6 17 .3
Eco Solutions 6 .1 13 .3 19 .1 20 .4 58 .9
Automotive Systems -3 .7 4 .4 2 .5 1 .7 4 .9
Industrial Devices -2 .7 2 .1 -13 .1 -2 .9 -16 .6
Energy -7 .5 -2 .3 -6 .9 -4 .2 -20 .9
Other 3 .9 10 .8 1 .0 7 .9 23 .6
Total 17 .3 37 .6 5 .7 20 .3 80 .9
Corporate and eliminations -11 .7 4 .4 -13 .8 -16 .1 -37 .2
Consolidated total   5 .6   42 .0   -8 .1   4 .2   43 .7
 
   

< Attachment 3 > Reference

Domain companies' information for fiscal 2013

 

Sales

      yen(billions)
  1st quarter

(Apr.-June)

2nd quarter

(July -Sept.)

Healthcare Company 32 .3 33 .0
Manufacturing Solutions Company   44 .6   37 .5
 
 

Domain company profit

      yen(billions)
  1st quarter

(Apr.-June)

2nd quarter

(July -Sept.)

Healthcare Company 1 .8 2 .1
Manufacturing Solutions Company   6 .3   5 .0
 
         

Domain companies' information for fiscal 2012

 

Sales

                  yen(billions)
  1st quarter

(Apr.-June)

2nd quarter

(July -Sep.)

3rd quarter

(Oct.-Dec.)

4th quarter

(Jan.-Mar.)

Fiscal 2012

(Apr.-Mar.)

Healthcare Company 31 .5 35 .0 32 .2 34 .9 133 .6
Manufacturing Solutions Company   47 .2   46 .6   32 .5   33 .5   159 .8
 
 

Domain company profit

                  yen(billions)
  1st quarter

(Apr.-June)

2nd quarter

(July -Sep.)

3rd quarter

(Oct.-Dec.)

4th quarter

(Jan.-Mar.)

Fiscal 2012

(Apr.-Mar.)

Healthcare Company 0 .9 2 .1 2 .1 3 .7 8 .8
Manufacturing Solutions Company   6 .7   7 .8   3 .1   7 .5   25 .1
 
Note: Healthcare Company and Manufacturing Solutions Company are included in Other segment.




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