Thanks to better sales in North America, Japan’s Panasonic Holdings (6752.T) maintained its full-year profit prediction for the battery-making energy sector and reported an increase in operating profit for the third quarter on Friday.
Although sales at its Japan plant were down and fixed expenses were higher, Panasonic stated in presentation materials that its third-quarter operating profit was driven by stronger sales in North America and a better mix between raw materials and selling prices.
The unit, which makes batteries for Tesla (TSLA.O), and other automakers, maintained its forecast for operating profit of 115 billion yen ($785 million) for the year ending on March 31.
Panasonic maintained its forecast for the unit even as automakers and suppliers around the world are facing disruptions to their electrification plans amid a slower pace of growth for battery-powered vehicles.
The battery unit foresaw a lower operating profit for the in-vehicle part of its business on lower-than-expected compensation for reduced cell production at its factory in Japan, but that was balanced out by a better profit forecast for the unit’s industrial and consumer business.
Panasonic’s overall operating profit rose 50.9% to 127.4 billion yen in the third quarter, helped by the performance of the lifestyle, automotive and energy units.
Its group chief financial officer is set to hold a briefing on the third-quarter earnings from 0900 GMT.
($1 = 146.4300 yen)
