High raw material prices having a “big” impact, Panasonic CEO says – Reuters

A logo of Panasonic Corp is pictured at the Combined Exhibition of Advanced Technologies at the Makuhari Messe in Chiba, Japan, October 2, 2017. REUTERS/Toru HanaiRegister now for FREE unlimited access to Reuters.comRegisterTOKYO, April 14 (Reuters) – Rising rates for raw products, including nickel and copper, sped up by Russias invasion of Ukraine were having a “huge” influence on Panasonic Corp (6752. T), with the Japanese commercial giant just able to pass on a few of those increases to its clients, the CEO said.”We are able to pass on expenses to some service clients depending on our agreements. Passing higher prices on to consumers is harder,” stated Yuki Kusumi, who oversees a business that makes items ranging from Tesla Incs (TSLA.O) electric automobile batteries to cleaning machines.Panasonic, Kusumi stated at a roundtable briefing, was reacting by improving manufacturing equipment to help soak up the additional cost, however those procedures were insufficient cover big price increases.Register now totally free unrestricted access to Reuters.comRegisterThe international cost of nickel, much of it supplied by Russia to make batteries, has actually soared this year, reaching more than $100,000 a tonne in March. find out more Panasonic said in February that its third quarter operating profit slid 44% partially due to the fact that of increasing material costs. The company is expected to launch results for the year that ended March 31 next month.Kusumi, who ended up being CEO last year, launched his first midterm business strategy this month, consisting of a commitment to invest in vehicle battery production, supply chain software application services and air cleanser and air conditioning unit business.Register now free of charge limitless access to Reuters.comRegisterReporting by Tim Kelly; Editing by Raju GopalakrishnanOur Standards: The Thomson Reuters Trust Principles.

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