Japan’s Panasonic (OTC:PCRFY) Holdings posted a 42% rise in first quarter profit on Monday, buoyed by a weaker yen and stronger sales in its automotive and energy segments, while it stuck to its full-year outlook.
Panasonic, whose energy unit makes batteries for Tesla (NASDAQ:TSLA) Inc, said operating profit came to 90.37 billion yen ($637 million) in the three months to end-June, versus the 91.18 billion yen average forecast in a poll of 11 analysts by Refinitiv.
Its battery unit, Panasonic Energy, and Subaru (OTC:FUJHY) said they have started talks to establish a battery supply partnership for electric vehicles that would supply the Japanese automaker with cylindrical lithium-ion batteries.
Panasonic, whose products span consumer electronics and delivery robots to sensing cameras and self-checkout systems, maintained its full-year forecast at 430 billion yen.
That compared to a 413.96 billion yen average profit forecast in a poll of 20 analysts by Refinitiv.
Last month, the chief technology officer of Panasonic’s battery arm told Reuters the unit will need to build four more factories to reach its target for a sharp boost in annual capacity of EV batteries by 2031.
