Panasonic Rises as Sliding Yen Set to Boost Profit

Panasonic Corp. (6752) surged the most in three months in Tokyo trading after an analyst at Credit Suisse Group AG estimated declines in the Japanese currency may add as much as 30 billion yen ($294 million) to earnings this year.

The nation’s second-largest television maker rose 7.6 percent to 806 yen at the close of trade, the biggest gain since Feb. 4. Japan’s benchmark Nikkei 225 Stock Average rose 1.2 percent.

Panasonic last week forecast net income of 50 billion yen in the 12 months ending March, compared with a loss of 754 billion yen a year earlier, as the maker of Lumix cameras restructures to revive profit from TVs and semiconductors. The Osaka-based company based its projection on an exchange rate of 85 yen per dollar, compared with 101.94 yen at 10:41 a.m.

“The current forex rates imply an upside of 30 billion yen,” Shunsuke Tsuchiya, an analyst at Credit Suisse in Tokyo who recommends buying the stock, said in a report to clients.

Sony Corp. (6758), Japan’s biggest TV maker, rose as much as 6.8 percent while Sharp Corp., the third-largest, jumped as much as 16 percent.

Panasonic President Kazuhiro Tsuga plans to spend 250 billion yen on restructuring during the next two years, adding to the 1.1 trillion yen spent since 2011. Full-year operating profit for the maker of Viera televisions will rise 55 percent to 250 billion yen, it said May 10.

The company expects its television losses to narrow to 34 billion yen this year from a loss of 88.5 billion yen. TV sales will fall 16 percent to 11.5 million units this year, Panasonic said.

Panasonic, which has lost more than 1.5 trillion yen in the past two fiscal years, fell further behind South Korea’s Samsung Electronics Co. and LG Electronics Inc. (066570) in the global TV market in 2012.

To contact the reporter on this story: Mariko Yasu in Tokyo at myasu@bloomberg.net

To contact the editor responsible for this story: Michael Tighe at mtighe4@bloomberg.net

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