Panasonic Corp. on Thursday dropped its goal of achieving ¥10 trillion in sales in fiscal 2018 as the electronics-maker struggles to build momentum for sustainable growth after restructuring.
After a review of its business strategy, Panasonic is now aiming at ¥8.8 trillion in the business year. The Osaka-based company aims to book an operating profit of ¥500 billion and a net profit of at least ¥250 billion.
Panasonic has been placing focus on its business with corporate customers in recent years, although building competitive business models is seen as a challenge.
The company maintained its plan to invest ¥1 trillion in growth areas such as high-end home appliances destined for Asia.
“We have decided to set a target that is in tune (with our businesses) while keeping our growth strategy in place,” Panasonic President Kazuhiro Tsuga said at a news conference in Tokyo.
Hit by the slowing of the Chinese and other emerging economies, Panasonic expects an operating profit of ¥410 billion in the business year through Thursday, rather than its initial target of ¥430 billion, on sales of ¥7.55 trillion, down from the ¥8 trillion projected earlier.