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Osaka (pte037/04.02.2005/15:59) - Japanese consumer electronics giant Matsushita http://www.matsushita.com has reported a sharp rise in its latest quarterly profits and has raised its full-year outlook. As the Financial Times (FT) http://www.ft.com reports, the Osaka-based group said that its third-quarter net income rocketed 47 per cent to 35.6 billion yen (263 million euros) due to strong sales of its core products. Sales rose by 13 per cent to 2,297 billion yen (17 billion euros). Its full-year operating profit was forecast to reach 300 billion yen (2.2 billion euros), up from 280 billion yen (2.07 billion euros), but the net profit estimate was cut from 63 billion yen (465.9 million euros) to 50 billion yen (369 million euros) as a result of deferred tax payments and higher restructuring costs.
Although Matsushita, the world's largest consumer electronics manufacturer managed to deliver a strong quarter, it also announced more job cuts than expected in an attempt to raise profit margins to five per cent by March 2007. According to the company, between 7,000 and 8,000 jobs would be lost in Japan by March 31, raising the estimate for its restructuring cost by 75 per cent to 140 billion yen (1.04 billion euros) this year, up from 80 billion yen (600 million euros). The company aims to cut costs by 120 billion yen (890 million euros) over two years.
Last month, Matsushita's president Kunio Nakamura said that global demand would be one per cent lower in the year to next March, adding that the high price of oil and materials together with a stronger yen would have a bad impact on electronics manufacturers. Although global semiconductor demand seems to be falling, the company is spending 130 billion yen (930 million euros) on a new chip facility in Japan, expecting the market to recover rapidly in the 2005 financial year. The group is on track to generate profits from its plasma display panel (PDP) operations in the year starting March 2005.
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