OREANDA-NEWS. Panasonic Corporation reported its consolidated financial results for the second quarter and six months ended September 30, 2014, of the current fiscal year ending March 31, 2015 (fiscal 2015).

Consolidated Second-quarter Results Consolidated group sales for the second quarter decreased by 1% to 1,870.6 billion yen compared with 1,881.8 billion yen for the second quarter of the year ended March 31, 2014 (fiscal 2014). Despite sales increase in solar and automotive businesses, this was mainly due to sales decrease of challenging businesses such as TVs, and sluggish demand in Japan after the consumption tax hike in April. Of the consolidated group total, domestic sales amounted to 892.5 billion yen, down by 3% from 922.4 billion yen a year ago, and overseas sales increased by 2% to 978.1 billion yen from 959.4 billion yen a year ago.

During the second quarter under review, the global economy moderately recovered. Seen slowdown in China and ASEAN countries, economy has continued to recover in Japan, Europe and the U.S. even with a sign of a partial slowdown.

Operating profit increased by 15% to 94.7 billion yen, from 82.4 billion yen a year ago, due mainly to fixed cost reduction. Pre-tax income and net income attributable to Panasonic Corporation decreased from a year ago, to 66.8 billion yen from 84.8 billion yen and to 43.0 billion yen from 61.5 billion yen, respectively mainly due to some one-time capital gains recorded a year ago.

Consolidated group sales for six months ended September 30, 2014 were 3,722.9 billion yen, much the same with 3,706.3 billion yen in the same period of fiscal 2014.

Demand in Japan overall backed off in consumer electronic products following the surge before the consumption tax hike in April. Meantime, this negative effect was mostly offset thanks to the effect of demand surge before the tax hike in some products carried over in the first quarter. Sales of housing solar business were stable, and sales of automotive business such as car navigation systems and car AVC equipment steadily increased in its global market. Domestic sales amounted to 1,749.9 billion yen, down by 2% from 1,787.3 billion yen a year ago, while overseas sales increased by 3% to 1,973.0 billion yen, up from 1,919.0 billion yen a year ago.

The company's operating profit for the first six months increased by 21% to 177.0 billion yen, from 146.6 billion yen a year ago, due mainly to sales increase in real terms excluding the business transfer in fiscal 2014 and fixed-cost reduction. Pre-tax income and net income attributable to Panasonic Corporation decreased to 121.9 billion yen from 207.4 billion yen, and to 80.9 billion yen from 169.3 billion yen, respectively due mainly to one-off gain from pension scheme change and some one-time capital gains in other income in the first quarter ended June 30, 2013.