Tesla Inc (NASDAQ:TSLA) battery supplier Panasonic Corporation (OTC:PCRFY) reported financial results for the fiscal year ended March 31, 2021, showing a 10.6% decline in sales and 27% drop in net profits. However, the company expects sales and profits to rebound in the fiscal year ending March 31, 2022.
COVID-19 Hits Sales, Bottom-line: Panasonic, a Japanese manufacturer of electric appliances and consumer electronics products, stated its net profit for the fiscal year came in at 6.79 trillion yen ($92.6 billion), down from 7.49 trillion yen a year ago.
Net profit slumped 27% to 165.1 billion yen.
The company attributed the weakness to the COVID-19 pandemic, which led to a decline in consumption and investment, and the impact of streamlining in product lines for TVs and digital cameras.
Panasonic Forecasts Strong FY22: Panasonic provided an upbeat forecast for the fiscal year 2022, as it expects net sales of 7 trillion yen, up 4% year-over-year, and net profit growth of 27% to 210 billion yen.
The company is a long-time battery supplier for Tesla and is striving to capitalize on the surging demand for EVs. It plans to begin a test line for Tesla's 4680 battery that would halve the costs, while at the same time increase capacity by 100-fold by 2030, Reuters reported.
PCRFY Price Action: As of Monday afternoon, shares were up 0.51% to $11.80 a share.