Panasonic Cuts Sales Outlook by $2.3 Billion Citing Virus Impact

(Bloomberg) --

Panasonic Corp. trimmed its annual revenue outlook by 250 billion yen ($2.3 billion) after the coronavirus outbreak depressed sales of appliances, electronics and automotive parts.

Sales will total 7.45 trillion yen in the year ended March 31, 3.2% short of the company’s earlier forecast, Panasonic said in a statement on Monday. The electronics manufacturer kept its operating income outlook unchanged at 300 billion yen and said its net income will exceed own estimate by 10 billion yen because of a more favorable tax situation.

Key Insights

The household appliance business took a hit from shelter-at-home orders in Europe and Asia and shortages of parts made in China, undercutting sales of air conditioners and washing machines.Sales of projectors and professional audio-visual equipment suffered from a slump in demand in China and event cancellations in Europe and the U.S.Automotive business revenue was dented by car-factory stoppages around the world.Panasonic said all 85 of its production and distribution subsidiaries in China and Northeast Asia are now operational.The company’s cash and equivalents totaled 1 trillion yen. It has also secured a 700 billion yen commitment line from multiple financial institutions.Chief Executive Officer Kazuhiro Tsuga will address the impact of the pandemic on the company’s mid-term plan at a separate briefing.

For more articles like this, please visit us at bloomberg.com

Subscribe now to stay ahead with the most trusted business news source.

©2020 Bloomberg L.P.