Panasonic Raises Energy Unit Forecast Amid Strong Battery Demand
Panasonic Holdings has revised its full-year earnings forecast for its energy unit upwards. This improvement stems from higher sales of energy storage systems and enhanced profitability at the unit's U.S. battery plant.
The battery segment's full-year outlook has been increased by 14% to 124 billion yen ($798.35 million). This increase is driven by a 39% growth in year-on-year operating profit for the unit in the third quarter. The segment's strong performance is attributable to increased sales of energy storage systems, reduced material prices, and improved profitability in its in-vehicle business in North America.
Panasonic plans to focus on management reform from April and aims to enhance group profitability by over 150 billion yen by fiscal 2026 and an additional 150 billion yen by fiscal 2028.
Panasonic Energy operates a battery plant in Nevada, USA, supplying batteries to Tesla. The company plans to open a second U.S. plant in Kansas this year, expanding its presence in North America.
Third-quarter operating income for the key segment rose to 42 billion yen ($270.46 million), according to Panasonic's financial materials. The company has maintained its full-year profit forecast for its entire business at 380 billion yen.
Panasonic competes with Asian battery manufacturers such as CATL of China and LG Energy Solution of South Korea. LG Energy Solution recently announced plans to reduce capital expenditure by up to 30% this year due to slowing EV demand growth.