Panasonic cuts battery unit's operating profit forecast by 15% for financial year (updated)

Panasonic Holdings

30/10/2023 07:22

(Adds details and context in paragraphs 2, 4-5)
       TOKYO, Oct 30 (Reuters) - Japan's Panasonic Holdings
 6752.T  on Monday cut the operating profit forecast for its
energy unit that makes automotive batteries by 15%, as it warned
of slowing demand for high-end electric vehicles in North
America.
    The company's less positive outlook for its battery segment
comes after a growing number of automakers and suppliers gave
their own warnings about a hit to EV sales due to the slowdown
in major economies, including China and Europe.
    Panasonic lowered its full-year operating profit forecast
for the energy unit that makes batteries for Tesla  TSLA.O  and
other automakers to 115 billion yen ($769 million) from 135
billion yen.
    Panasonic's group chief financial officer is set to hold a
briefing on the second-quarter earnings from 0900 GMT on Monday.
    The battery unit's production in Japan suffered from slowing
uptake for high-end EVs in North America, Panasonic said in a
presentation posted on its website, as the U.S. Inflation
Reduction Act spurred demand changes among consumers.
    Panasonic's production at its North American operations
remained steady, and it saw stable sales of vehicles eligible
for tax credits, it said in the materials. 
        ($1 = 149.5400 yen)

 (Reporting by Daniel Leussink; Editing by Kim Coghill and Miral
Fahmy)
 ((daniel.leussink@thomsonreuters.com; Twitter:
@danielleussink;))