Tesla Battery Biz Boosts Panasonic’s Earnings
Panasonic finally earns money on batteries, some other areas disappoint though.
Panasonic announced financial results for Q4 2018 (Japanese FY Q3). The company as a whole encountered some obstacles (we saw it already in previous quarter). The operating profit decreased by 19% to 97.6 billion JPY ($887 million) and net profits decreased by 26% to 60.1 billion JPY ($546 million).
However, in the case of the lithium-ion battery business for automotive applications, it’s getting better. Sales of batteries are increasing and Panasonic intends to be ready for 35 GWh cell production at the Tesla Gigafactory by the end of March 2019.
Panasonic results – Q4’2018 (Japanese FY 2018-Q3)
The operating profit from Energy segment increased by 13% during the Q4 to 16.5 billion JPY ($150 million), which is really not bad – almost 17% of total operating profit of the company (at less than 10% share in sales).
Sales:Significant increase in automotive batteries, mainly in cylindrical types.
OP: Increased overall due mainly to fixed-cost control initiatives and operational improvement throughout Energy, in addition to revised provision for legal expenses, despite ramp-up expenses for automotive battery factory in North America.
The forecast’s revision clearly indicates that Panasonic expected to be able to sell more batteries. Here are interesting insights about the battery business: