July 29 (Bloomberg) -- Matsushita Electric Industrial Co., the world's largest consumer-electronics maker, reported first- quarter profit rose more than analysts estimated on sales of flat-screen televisions and digital cameras.

Net income climbed 86 percent to 73 billion yen ($679 million) in the three months ended June 30, the Osaka-based maker of Panasonic-brand electronics said today. Profit beat the median estimate in a Bloomberg survey of four analysts by 72 percent.

The result contrasts with that at Sony, which said profit fell 47 percent on the stronger yen and smaller sales growth in electronics as the global economy slows. Matsushita makes about half its sales in Japan, making it less vulnerable to the yen's 15 percent gain against the dollar in the year to June 30.

Sales decreased 4 percent to 2.15 trillion yen. Operating profit, or sales minus the cost of goods sold and administrative expenses, rose 48 percent to 109.6 billion yen from 73.9 billion yen a year earlier.

The company maintained its forecasts from April for full- year net income of 310 billion yen, sales of 9.2 trillion yen and operating profit of 560 billion yen.

Matsushita shares fell 0.2 percent to close at 2,180 yen on the Tokyo Stock Exchange, before earnings were reported.

Profit at the consumer electronics business rose 41 percent to 55 billion yen, beating the 46 billion yen median estimate in the survey.

Matsushita's appliances division, which includes refrigerators and washing machines, posted profit of 31.5 billion yen, a 75 percent increase from a year earlier and higher than analysts' estimate of 17.9 billion yen.

Profit at the electronics devices division, including semiconductors, gained 6 percent to 19.5 billion yen, compared with 18 billion yen projected in the survey.

Sony generated 74 percent of sales overseas during the quarter. A stronger yen cuts the value of export earnings when repatriated.

To contact the reporter on this story: Hiroshi Suzuki in Tokyo at Hsuzuki5@bloomberg.net.

Last Updated: July 29, 2008 07:02 EDT