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Matsushita leader expects to double profit by 2010

Posted: 11 Jul 2006 ?? ?Print Version ?Bookmark and Share

Keywords:Matsushita? XX? XX? Fumio Ohtsubo? Yoshiko Hara?

New Matsushita president Fumio Ohtsubo made clear in his inauguration speech the Japan-based electronics giant expects to double operating profit margins to 10 percent by 2010.

"My mission is to transition Matsushita to a growth phase," said the 60-year old Ohtsubo, who succeeded Kunio Nakamura, now the company's chairman of the board. "Matsushita has completed establishing a framework to fight in the world market this century."

Under Nakamura, Matsushita went through drastic reform, which enabled the company to recover from a record loss of about $1.4 billion in fiscal 2002 to a $3.5 billion profit the past fiscal year, achieving a 4.7 percent operating profit margin.

For the current fiscal year, Matsushita expects an operating profit of $3.8 billion, or a profit margin of 5 percent.

Matsushita's path to achieving its financial goals has drawn much discussion.

"It's really a tough target," said Ohtsubo, declining to divulge details until the company releases its mid-term plan for fiscal 2007 to 2009 next January.

Ohtsubo cited two key initiatives as increasing overseas sales and strengthening product competitiveness. Flat-panel TVs, automotive electronics, lifestyle products and semiconductors are seen as key product areas.

- Yoshiko Hara
EE Times

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