Panasonic Corp., the world’s largest maker of plasma televisions, raised its full-year operating profit forecast 25 percent, citing reductions in the company’s fixed and material costs.

Operating profit, or sales minus the cost of goods sold and administrative expenses, will probably reach 150 billion yen ($1.67 billion) in the 12 months ending March 31, compared with an earlier forecast of 120 billion yen, the company said in a statement today. Sales may total 7.35 trillion yen, 5 percent more than previously projected.

The maker of Viera televisions joins Sony Corp. in raising its forecast, helped by cutting thousands of jobs as demand for consumer electronics recovers. President Fumio Ohtsubo is counting on energy-efficient products and batteries to challenge overseas rivals after acquiring Sanyo Electric Co., the world’s largest maker of rechargeable batteries

Panasonic fell 3.1 percent to close at 1,392 yen in Tokyo trading before the results were announced, narrowing its gain this year to 5.1 percent. Japan’s benchmark Nikkei 225 Stock Average has lost 4.6 percent this year.

The company kept its forecast for a full-year net loss unchanged at 140 billion yen.

Panasonic said the effect of consolidating with Sanyo, in which it bought a controlling stake in December, contributed to expense reductions. The company targets savings of 300 billion yen in the 12 months ending March 31, helped by cutting jobs. The company eliminated 29,155 positions in the year ended Sept. 30.

Source:Bloomberg