Tesla Battery Supplier Panasonic Guides To Strong Net Profit Growth For FY2022

Tesla Inc TSLA battery supplier Panasonic Corporation PCRFY reported financial results for the fiscal year ended March 31, 2021, showing a 10.6% decline in sales and 27% drop in net profits. However, the company expects sales and profits to rebound in the fiscal year ending March 31, 2022.

COVID-19 Hits Sales, Bottom-line: Panasonic, a Japanese manufacturer of electric appliances and consumer electronics products, stated its net profit for the fiscal year came in at 6.79 trillion yen ($92.6 billion), down from 7.49 trillion yen a year ago.

Net profit slumped 27% to 165.1 billion yen.

The company attributed the weakness to the COVID-19 pandemic, which led to a decline in consumption and investment, and the impact of streamlining in product lines for TVs and digital cameras.

Related Link: Elon Musk Says Battery Cell Constraints A Hiccup In Tesla Semi Rollout

Panasonic Forecasts Strong FY22: Panasonic provided an upbeat forecast for the fiscal year 2022, as it expects net sales of 7 trillion yen, up 4% year-over-year, and net profit growth of 27% to 210 billion yen.

The company is a long-time battery supplier for Tesla and is striving to capitalize on the surging demand for EVs. It plans to begin a test line for Tesla's 4680 battery that would halve the costs, while at the same time increase capacity by 100-fold by 2030, Reuters reported.

Related Link: Panasonic To Acquire Remaining 80% Blue Yonder Stake For $7.1B

PCRFY Price Action: As of Monday afternoon, shares were up 0.51% to $11.80 a share.

(Photo: Panasonic)