Panasonic Posts Record Net Profit, Thanks To U.S. Car Battery Subsidy

Panasonic Holdings Corp. has posted a record net profit of 443.99 billion yen ($2.85 billion) for the business year ended March, jumping by 67.2% from the previous year, helped by US subsidies for battery production for electric vehicles, Kyodo News reported.

US subsidies for battery production for electric vehicles were a key factor for the Osaka-based manufacturer. I Photo: Panasonic

The Osaka-based manufacturer said that its earnings received a boost from both the tax credits provided by the US Inflation Reduction Act and one-time gains resulting from the sale of its LCD panel unit.

The liquidation of Panasonic Liquid Crystal Display Co. led to a reduction in income taxes.

Panasonic's operating profit for fiscal 2023 rose by 25.1% to 360.96 billion yen on sales of 8.50 trillion yen, up by 1.4%.

The automotive segment saw its operating profit rise by 2.6-fold to 42.8 billion from 16.2 billion yen the year before.

For the current fiscal year ending next March, Panasonic expects net profit to fall by 30.2% to 310 billion yen and operating profit to increase by 5.3% to 380 billion yen. Sales are estimated at 8.6 trillion yen, up by 1.2%, Mainichi Shimbun also reported.