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May 1, 2007 - Matsushita Electric Industrial Co. Ltd., otherwise known as Panasonic, last week announced the company’s annual net profit rose 11 percent since last fiscal year, ending on March 31.
"During the fiscal year under review, the electronics industry faced severe business conditions in Japan and overseas, due mainly to rising prices for crude oil and other raw materials and continued price declines caused by ever-intensified global competition, mainly in digital products," stated the financial report.
Despite the current consumer electronics obstacles that the industry faces as a whole, Matsushita reported an operating profit of 459.5 billion yen ($3.89 billion USD), up from 414.3 billion yen ($3.51 billion) in the previous year.
As the number one plasma TV maker, Panasonic reported strong television and Lumix camera sales, according to a Reuters news report.
Net income rose 41 percent to 217.2 billion yen ($1.84 billion) from 154.4 billion yen ($1.31 billion) a year ago.
Matsushita anticipates the manufacturer will face similar obstacles over the next fiscal year. "The company currently expects to encounter severe conditions, such as continuing price declines and rising crude oil and other raw materials prices, as well as concerns about the global economic conditions, mainly in the United States."
To combat the price of raw materials, a weakening yen, and industry competition, Matsushita is planning aggressive initiatives to accelerate growth, according to the financial report. Matsushita expects consolidated operating profit to rise 9 percent to 500 billion yen ($4.23 billion) next fiscal year.