The Panasonic Corp has revealed a 19% increment in its “first-quarter profit”, whereby leaving the estimate figures behind, the profits soared ahead following the “strong demand for factory automation equipment” which offsets the costs of “ramping up automotive battery plants”.
The Japanese electronics company published a profit of “99.96 billion yen” equivalent to “£682.5 million” from the month of April to June, while the previous year’s respective figures were “83.93 billion”. Moreover, the seven analysts at Thomson Reuters had estimated the profits figures to be an average of “98.53 billion”.
Panasonic’s performance was consistence through March as it matched the profit forecast at “425 billion yen”, in comparison to the “21 analyst estimates” of “433.9 billion yen average”. As “automotive batteries” seem to be central for the sector’s growth, the company increased its production in this year. As a result, Panasonic hiked up manufacturing in “a new plant in China and at Tesla Inc’s”, the latter is also known as Gigafactory which is under joint control and it located in “the U.S. state of Nevada”.
Furthermore, Reuters added:
“Panasonic’s share price has nevertheless been on a downward trend this year as investors worry the firm’s $1.6 billion Gigafactory bet has made it susceptible to the strategy of a U.S. electric vehicle maker struggling with mass production”.
Towards the end of the “last quarter”, Tesla managed to reach its target of manufacturing “5,000 mass-market Model 3 vehicles” in a week, a target that has remained elusive lately. Nevertheless, speculations regarding the sustenance of Tesla’s above mentioned performance have been at the root of pushing the “automaker’s shares lower”. Jefferies’ analysts in a recent report to clients stated:
“For the past two years, Panasonic has spent on capex and R&D without being able to record revenues against those costs”.
“By the end of this financial year, as Model 3 production run-rate becomes stable and sustainable, it (Panasonic) should be able to record profits in its Tesla battery business.”
References:
reuters.com
The Japanese electronics company published a profit of “99.96 billion yen” equivalent to “£682.5 million” from the month of April to June, while the previous year’s respective figures were “83.93 billion”. Moreover, the seven analysts at Thomson Reuters had estimated the profits figures to be an average of “98.53 billion”.
Panasonic’s performance was consistence through March as it matched the profit forecast at “425 billion yen”, in comparison to the “21 analyst estimates” of “433.9 billion yen average”. As “automotive batteries” seem to be central for the sector’s growth, the company increased its production in this year. As a result, Panasonic hiked up manufacturing in “a new plant in China and at Tesla Inc’s”, the latter is also known as Gigafactory which is under joint control and it located in “the U.S. state of Nevada”.
Furthermore, Reuters added:
“Panasonic’s share price has nevertheless been on a downward trend this year as investors worry the firm’s $1.6 billion Gigafactory bet has made it susceptible to the strategy of a U.S. electric vehicle maker struggling with mass production”.
Towards the end of the “last quarter”, Tesla managed to reach its target of manufacturing “5,000 mass-market Model 3 vehicles” in a week, a target that has remained elusive lately. Nevertheless, speculations regarding the sustenance of Tesla’s above mentioned performance have been at the root of pushing the “automaker’s shares lower”. Jefferies’ analysts in a recent report to clients stated:
“For the past two years, Panasonic has spent on capex and R&D without being able to record revenues against those costs”.
“By the end of this financial year, as Model 3 production run-rate becomes stable and sustainable, it (Panasonic) should be able to record profits in its Tesla battery business.”
References:
reuters.com