UPDATE 1-Panasonic's battery unit posts 3.5% drop in Q3 operating profit

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Writes through on outlook for energy unit

- Quarterly operating profit for Panasonic Holdings' 6752.T key energy unit, which makes batteries for Tesla TSLA.O, fell 3.5% from a year earlier on weaker sales in North America as conditions in the electric-vehicle market worsened.

The segment posted operating income of 40.5 billion yen ($259.15 million) in the third quarter, as lower North American sales outweighed growing demand for energy storage systems used at data centres, it said.

The company retained its full-year operating profit forecast for the unit at 111 billion yen, after cutting it to that level in the previous quarter.

Panasonic has sought growth in North America by producing EV batteries at two plants in the U.S., one in the state of Nevada and the other in Kansas, which opened in July last year.

However, output capacity at the Kansas plant at the end of the financial year ending March 2026 is expected to fall short of initial plans due to delays in the start of production.

Panasonic is considering converting part of the plant's production lines to supply data centre applications, it said.

The company added it expects conditions in the North American EV market to recover gradually after bottoming out in the previous quarter.

Panasonic also cut its full-year operating profit forecast by 9.4% to 290 billion yen from 320 billion yen expected previously due to restructuring expenses related to a push to reform its group.


($1 = 156.2800 yen)