Panasonic raises battery unit's earnings outlook on storage sales, profitability boost (updated)

Panasonic Energy India

04/02/2025 07:45

(Recasts on battery unit's outlook, writes through)
       TOKYO, Feb 4 (Reuters) - Japan's Panasonic Holdings
 6752.T  raised the full-year earnings forecast for its energy
unit, which supplies batteries to Tesla  TSLA.O , on stronger
sales of energy storage systems and improved profitability at
its U.S. battery plant.
        Panasonic raised the battery segment's full-year outlook
by 14% to 124 billion yen ($798.35 million) after it reported a
39% year-on-year operating profit increase in the third quarter
for the unit.
        The unit's rosy result so far this year was spurred by
an uptick in sales of energy storage systems and lower material
prices, along with improved profitability in its in-vehicle
business in North America.
    Those factors helped offset an overall decrease in
automotive battery sales which led to reduced production in
Japan and ramped-up costs for two facilities, a new U.S. battery
plant and a renovated factory in Japan's Wakayama prefecture.
        Panasonic Energy operates a plant in the U.S. state of
Nevada that provides batteries to Tesla. It plans to open a
second U.S. plant in Kansas this year as it enlarges its
footprint in North America.
    Third-quarter operating income for the key segment rose to
42 billion yen ($270.46 million), Panasonic said in financial
materials. The company also retained its full-year profit
forecast for its group's entire business at 380 billion yen.
    Panasonic competes with other Asian battery makers such as
China's CATL  300750.SZ  and South Korea's LG Energy Solution
 373220.KS , which said last month it planned to slash capital
expenditure by up to 30% this year on slowing EV demand growth.
    ($1 = 155.1800 yen)

 (Reporting by Daniel Leussink; Editing by Christian
Schmollinger and Saad Sayeed)
 ((daniel.leussink@thomsonreuters.com; Twitter:
@danielleussink;))