Panasonic Falls After Cutting Profit Target on Yen, Solar Panels
- The company reduces operating profit forecast by 21 percent
- Annual profit goal is at lowest level in three years
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Panasonic Corp. fell in Tokyo trading after reducing its full-year operating profit forecast by 21 percent as profitability in its solar panel and electronic components businesses declined and a stronger yen reduced income earned abroad.
The shares declined as much as 7.9 percent as of 9:06 a.m. on Tuesday, the biggest intraday slump in three months. Operating profit will probably reach 245 billion yen ($2.3 billion) in the fiscal period ending March, Panasonic said in a statement Monday. That’s a 41 percent drop from a year earlier and short of the 326.5 billion yen average of 18 analyst estimates compiled by Bloomberg.