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Panasonic Closes Q2

OSAKA, Japan — Panasonic Corporation (Panasonic)(NYSE:PC) today reported its consolidated financial results for the second quarter and six months ended September 30, 2010, of the current fiscal year ending March 31, 2011 (fiscal 2011).

Consolidated Second-quarter Results

Compared to the same period a year ago, consolidated group sales for the second quarter increased 27% to 2,206.8 billion yen, from 1,737.8 billion yen. Of the consolidated group total, domestic sales amounted to 1,135.1 billion yen, up 24% from 917.3 billion yen and overseas sales increased to 1,071.7 billion yen, up 31% from 820.5 billion yen.

During the second quarter, the global economy continued to recover gradually due mainly to economic stimulus government programs, despite uncertain economy in developed countries. The emerging markets and environment- and energy-related markets will continue to expand steadily in the mid-to-long-term. Under these circumstances, the company expects the competition in these growing markets to intensify. In such business conditions, Panasonic group launched a new midterm management plan called “Green Transformation 2012 (GT12)” in the beginning of fiscal 2011. In GT12, Panasonic aims to integrate environmental protection and business growth, and to become a 'Panasonic Group filled with significant growth potential' in fiscal 2013.

Panasonic resolved, at the Board of Directors meeting held in July 2010, to pursue a plan to make Panasonic Electric Works Co., Ltd. (PEW) and SANYO Electric Co., Ltd. (SANYO) wholly-owned subsidiaries of Panasonic by around April 2011. The company is in the process of finalizing growth strategies and reorganizing business structure in order to maximize synergy for the entire Panasonic Group. Panasonic will accelerate this process in order to achieve its GT12 targets.

Regarding earnings, compared to the same period a year ago, operating profit1 for the second quarter was 85.2 billion yen, up from 49.1 billion yen. This result was due mainly to strong sales, and streamlining of material costs and other general expenses, offsetting severe price competition and appreciation of the yen. In other income (deductions), the company incurred business restructuring expenses and write-down of securities. These factors resulted in a pre-tax income of 60.3 billion yen, up from 25.3 billion yen. Accordingly, net income attributable to Panasonic Corporation totaled 31.0 billion yen, up from 6.1 billion yen.

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