Panasonic 2010 Annual Report Download - page 59

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57
Panasonic Corporation 2010
Financial Review
Provision for Income Taxes
Provision for income taxes for fiscal 2010 amounted to
142 billion yen, a significant increase compared with 37
billion yen in the previous fiscal year. This result was
due primarily to the fact that the Company increased the
valuation allowances to deferred tax assets.
Equity in Earnings (Losses) of Associated Companies
In fiscal 2010, equity in earnings of associated companies
decreased to gains of 0.5 billion yen from the previous
year’s gains of 16 billion yen. This was due mainly to
declining profitability of certain equity method investees.
Net Income (Loss)
Net loss amounted to 171 billion yen for fiscal 2010,
compared with a net loss of 404 billion yen in fiscal 2009.
Net Income (Loss) Attributable to
Noncontrolling Interests
Net loss attributable to noncontrolling interests
amounted to 67 billion yen for fiscal 2010, compared
with a net loss attributable to noncontrolling interests of
25 billion yen in fiscal 2009. This result was due mainly
to IPS Alpha Technology, Ltd.
Net Income (Loss) Attributable to
Panasonic Corporation
As a result of all the factors stated in the preceding
paragraphs, the Company recorded a net loss attribut-
able to Panasonic Corporation of 103 billion yen for fiscal
2010, an improvement of 276 billion yen from the previous
year’s net loss attributable to Panasonic Corporation of
379 billion yen.
Results of Operations by Business Segment
Digital AVC Networks sales decreased 9% to 3,410 billion
yen, compared with 3,749 billion yen in the previous
year. Within this segment, although domestic sales of
flat-panel TVs, automotive electronics and Blu-ray Disc
recorders were favorable, overall sales declined due
mainly to a sales decline of notebook PCs and mobile
phones. Regarding digital cameras, although market
conditions were tough, sales of both high-end and stan-
dard models were favorable and the sales remained
unchanged from the previous year.
With respect to this segment, despite the sales
decline, operating profit significantly improved to 87 billion
yen, or 2.6% of sales, from 3 billion yen in fiscal 2009. This
was due mainly to comprehensive streamlining efforts.
Sales of Home Appliances decreased 7% to 1,142
billion yen, compared with 1,223 billion yen in the previous
fiscal year. Within Home Appliances, despite strong sales
of refrigerators, overall sales decreased due mainly to
weak sales of air conditioners and compressors.
Profit in this segment increased 36% from 49 billion
yen in fiscal 2009, to 67 billion yen for fiscal 2010, or
5.8% of sales. Comprehensive streamlining efforts offset
the negative impact of sales declines and led the operat-
ing profit increase in this segment.
Sales of PEW and PanaHome decreased 8% to
1,632 billion yen, compared with 1,766 billion yen in the
previous fiscal year. At PEW and its subsidiaries, sales
mainly decreased in electrical construction materials and
building materials. For PanaHome Corporation and its
subsidiaries, ongoing sluggishness in the Japanese
housing market conditions led to the sales decrease.