Panasonic shares jump by 17%

Press Release   •   Feb 04, 2013 11:54 GMT

Panasonic unveiled today that their shares have soared nearly 17% in the third quarter, as investors reacted to the Japanese electronics giant's latest earnings, while rivals Sony and Sharp also spiked on upbeat sentiment.

Panasonic closed 16.89% higher at 692 yen in Tokyo, following the company's announcement after the close of Friday's session that it posted an operating profit of 121.95 billion yen ($1.32 billion) in the nine months to December, and a 61.4 billion yen net profit in the last three months of 2012.

That marked a huge reversal from a net loss of 197.6 billion yen a year earlier, with Panasonic citing aggressive cost-cutting as part of a massive corporate overhaul aimed at stemming record losses.

Panasonic, which kept its forecast for a full-year loss unchanged, said a weak yen had improved business conditions.

Analysts said investors were hoping that a weak currency will help boost profits further in the current quarter.

Sony, which reports earnings this week, jumped 9.44% to 1,483 yen. Sharp was up 7.9% to 355 yen by the break, after the embattled maker of Aquos-brand electronics offered a glimmer of hope on Friday, saying it eked out a small operating profit in its October-December quarter.

Panasonic has seen its fortunes slide in recent years amid a slowdown in global demand and falling prices for TVs.

To make matters worse, it has also had to face strong competition from rivals, including South Korea's Samsung which has grabbed a big share of the global TV market.

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