Aomori Group | Panasonic Profits After Cost-Cutting.

Aomori Group - Panasonic's shares price soared more than in the past 38 years after its surprise profit turnaround.

Sugar Land, TX (prHWY.com) March 1, 2013 - Aomori Group purportedly announced in a investors meeting that Panasonic's shares price soared more than in the past 38 years after its surprise profit turnaround. Panasonic's shares jumped by 17 percent in Tokyo, or 100 yen, which is its daily limit, up to 692 yen.

The Osaka based firm reported earnings of 61.3 billion yen, or US$666 million for their quarter ending at the end of the year, beating the average analyst expectation of a 15 billion yen loss. Panasonic experienced a 197 billion yen loss for the same quarter of 2011.

Aomori Group reportedly conveyed that Panasonic has kept their full year forecast of a loss unchanged and stated that the weaker yen, job cuts and asset sales have improved business conditions. Since the last of quarter of last year, the yen has fallen by more than 15 percent against the US Dollar. The weaker yen means that repatriated funds from overseas sales boosts profits and also allows their goods to be more affordable in international markets.

Aomori Group allegedly remarked that a spokesman for Panasonic publicly confirmed that more than 38,000 jobs had been cut since last April in cost cutting measures that will continue into the coming year, with a further 8,000 losses expected by the start of the second quarter. They have also been closing under performing plants and pulling out of low margin sectors.

Panasonic's performance has been on a downward curve in recent years, as global demand and prices for TVs has fallen. Matters have been compounded by increased competition from rivals, with Korean giant Samsung in particular taking a significant market share.

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