US trade sanctions hit Panasonic Malaysia export sales

panasonic home

KUALA LUMPUR: Home appliances maker PANASONIC MANUFACTURING Malaysia Bhd said revenue in the second quarter ended June 30 was affected by trade sanctions imposed by the US against certain Middle East countries.

The drop, however, was somewhat cushioned by higher exports to other Asean countries and increased domestic sales during the Hari Raya festive period in June.

The company, in a filing with Bursa Malaysia today, reported a net profit of RM27mil in the second quarter on revenue of RM291.4mil.

Sales to the Middle East fell by almost a third to RM45mil in the June quarter compared with RM66.9mil a year ago.

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Exports to Asian countries, excluding Japan, rose 10% to RM88mil, while domestic sales improved slightly to RM142.5mil.

"The increase in profitability was mainly attributable to lower derivative loss amounting to RM900,000 as compared to derivative loss of RM11.4mil in the previous year’s corresponding quarter," Panasonic said.

The company said its home appliances segment saw a 20% drop in pre-tax profit to RM10.8mil, while the fan and other businesses registered a 7.4% decline in pre-tax profit to RM23mil.

With the current slow down in the global economy, coupled with rising trade tensions, Panasonic said it is cautiously optimistic with regards to its prospects.

"The company will continue to strengthen its manufacturing capabilities through the continued expansion of robotic and automation systems in its facilities," it said.

The enhancement in the IT system, as well as the ongoing training programs for the operational staff, it said, will further improve the company’s productivity. - Star