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Thursday January 31, 11:58 PM Japan's Matsushita posts 46 percent jump in profits Photo: AFP Click to enlarge TOKYO (AFP) - Matsushita, the Japanese giant behind the Panasonic brand, said Thursday its third-quarter net profit soared 46 percent to an all-time high amid strong sales of digital cameras and flat televisions. But the company sounded a note of caution about the business outlook, saying that conditions would become more uncertain because of the US economic slowdown and the stronger yen, which is bad for overseas earnings. Net profit jumped to 115.18 billion yen (1.08 billion dollars) in the three months to December, Matsushita Electric Industrial Co. said in a statement. Operating profit rose by 21.8 percent to 165.4 billion yen, while revenue declined by 3.8 percent to 2.34 trillion yen after the company slashed its stake in troubled affiliate JVC, Osaka-based Matsushita reported. Sales of video and audio equipment jumped by 10 percent from a year earlier, helped by brisk sales of flat-panel TVs and digital cameras. Matsushita, which recently announced plans to change its name to Panasonic, saw double-digit sales growth in Europe and Asia, including China, thanks to brisk demand for audio and visual products and some home appliances. Sales of flat-panel TVs, including plasma and liquid crystal display TVs, contributed to the company's healthy results, surging by more than 30 percent in Europe, by 64 percent in China and by 15 percent in North America. "Globally, sales of flat-screen TVs in the quarter were up 120 percent from the same period of last year," said chief financial officer Makoto Uenoyama. "Sales in North America recovered, especially in December," he noted. The company also enjoyed brisk demand for white goods such as air conditioners and refrigerators. "In China, refrigerators specially designed to fit rather compact kitchens sold well," Uenoyama said. Despite being a leader in plasma display panels, Matsushita has not been immune to stiff price competition and fears of a US recession. The business environment will "become more uncertain in the fourth quarter of fiscal 2008, with a global economic slowdown stemming from the US subprime loan problem and the sharp appreciation of the yen," the company warned. Matsushita maintained its forecast for net profit of 246 billion yen for the full fiscal year to March, up from 217.2 billion the previous year. It sees operating profit of 477 billion yen, up from 459.5 billion yen the previous year, and revenue of 8.78 trillion yen, down from 9.1 trillion yen. The group's revenue has been affected by the deconsolidation of Victor Co of Japan (JVC), in which Matsushita cut its stake to 36.9 percent in August from 52.7 percent previously. Last July, JVC agreed on a capital tie-up with fellow Japanese high-tech firm Kenwood Corp. to try to energise its ailing operations.