TOKYO (Reuters) – Japan’s Panasonic Corp lifted its outlook for earnings this year after reporting a 23 percent jump in third-quarter operating profit on healthy sales of car components and factory automation equipment.
The strong showing underscores the company’s shift away from the price competition of smartphones and other lower-margin consumer products, reinventing itself as a provider of automotive batteries, other car components and automation equipment.
Panasonic, the exclusive battery cell supplier for Tesla Inc’s mass-market Model 3 sedan, raised its profit forecast for the year ending March to 350 billion yen from 335 billion yen, in line with market estimates.
For the quarter just ended, operating profit surged to 120.1 billion yen ($1.09 billion), beating an average estimate of 105.7 billion yen.
Read More: Panasonic Hikes Outlook After Third Quarter Earnings Surge on Automotive Demand