Panasonic 2006 Annual Report Download - page 50

48 Matsushita Electric Industrial Co., Ltd. 2006
tronics equipment, which were more than sufficient to
offset decreased sales in mobile phones.
With respect to this segment, profit improved 50%
from ¥127.4 billion in fiscal 2005, to ¥190.9 billion
($1,631 million) for fiscal 2006, which is equivalent to
4.8% against sales. This increase was attributable mainly
to expanded sales in digital products and cost rational-
ization.
Sales of Home Appliances increased 1% to ¥1,241.2
billion ($10,609 million), compared with ¥1,229.8
billion in the previous year. Within Home Appliances,
sales gains were recorded in air conditioners and
microwave ovens, which were sufficient to offset
decreased sales in vacuum cleaners and other household
equipment.
Profit in this segment rose 3% from ¥74.8 billion in fis-
cal 2005, to ¥77.1 billion ($659 million) for fiscal 2006, or
6.2% of sales. This increase was due mainly to the success-
ful introduction of new high-value-added products, com-
bined with the effects of various rationalization activities.
Sales of Components and Devices decreased 7% to
¥1,368.3 billion ($11,695 million), from the previous
year’s ¥1,469.0 billion. Sluggish sales in semiconductors
for the fiscal year, despite increased sales in electronic
components and devices, led to overall lower sales.
With respect to this segment, profit increased 40%
from ¥57.8 billion in fiscal 2005, to ¥81.1 billion ($693
million) for fiscal 2006, owing largely to cost rational-
ization effects, which were sufficient to offset the nega-
tive effects of decreased sales. Profit against sales for this
segment was 5.9% for fiscal 2006.
Sales of MEW and PanaHome increased 4% to
¥1,747.2 billion ($14,933 million), compared with
¥1,686.3 billion a year ago. Sales at MEW and its sub-
sidiaries were mostly unchanged from the previous year,
with favorable sales in electrical construction materials
and automation controls. At PanaHome Corporation,
sales gains were recorded in detached housing, con-
tributing to increased sales overall.
With respect to this segment, profit increased 9% to
Information by Business Segment
Thousands of
Millions of yen U.S. dollars
2006 2005 2004 2003 2002 2006
Sales:
AVC Networks.......................... ¥ 3,986,088 ¥ 3,858,781 ¥ 3,840,268 ¥ 3,668,195 ¥ 3,508,624 $ 34,069,128
Home Appliances ...................... 1,241,202 1,229,768 1,223,190 1,197,481 1,170,785 10,608,564
Components and Devices .......... 1,368,258 1,469,007 1,659,672 1,709,732 1,534,728 11,694,513
MEW and PanaHome ............... 1,747,207 1,686,257 — — — 14,933,393
JVC........................................... 703,116 730,209 818,999 851,509 834,819 6,009,538
Other ........................................ 1,315,292 1,027,123 948,728 819,055 725,357 11,241,812
Eliminations .............................. (1,466,834) (1,287,509) (1,011,113) (844,258) (700,476) (12,537,042)
Consolidation total ................ ¥ 8,894,329 ¥ 8,713,636 ¥ 7,479,744 ¥ 7,401,714 ¥ 7,073,837 $ 76,019,906
Segment profit:
AVC Networks.......................... ¥ 190,885 ¥ 127,366 ¥ 129,102 ¥ 82,828 ¥ (35,626) $ 1,631,496
Home Appliances ...................... 77,135 74,794 52,759 45,240 32,611 659,274
Components and Devices .......... 81,111 57,761 50,099 31,213 (95,714) 693,256
MEW and PanaHome ............... 72,694 66,761 — — — 621,316
JVC........................................... (5,782) 9,887 24,675 21,863 (12,345) (49,419)
Other ........................................ 62,225 38,352 14,701 13,042 (32,388) 531,838
Corporate and eliminations........ (63,995) (66,427) (75,844) (67,615) (55,536) (546,966)
Total segment profit (loss) ....... ¥ 414,273 ¥ 308,494 ¥ 195,492 ¥ 126,571 ¥ (198,998) $ 3,540,795
Notes: 1. MEW, PanaHome and their respective subsidiaries became consolidated subsidiaries of the Company on April 1, 2004. Accordingly, a
new business segment, “MEW and PanaHome,” has been added from fiscal 2005.
2. Under the collaboration with MEW, the Company reorganized business and sales channels in such areas as electrical construction mate-
rials, building equipment and home appliances. Accordingly, fiscal 2005 business segment information for “Home Appliances” and
“MEW and PanaHome” has been reclassified to conform with fiscal 2006 for information by business segment.