KUALA LUMPUR (Feb 27): Panasonic Manufacturing Malaysia Bhd's net profit slipped nearly 44% to RM24.03 million or 40 sen per share in the third quarter ended Dec 31, 2018 (3QFY19), from RM42.65 million or 70 sen per share a year ago, no thanks to the lower revenue, higher material cost and unfavourable model mix.

The company also attributed the lower earnings to its associated company incurring operational losses for the quarter under review due to reduced domestic sales after the implementation of sales and service tax (SST).

Quarterly revenue was down 9.2% to RM287.87 million, from RM317.05 million in 3QFY18, according to the group's filing to Bursa Malaysia after trading hours.

For the cumulative nine months ended Dec 31, 2018, its net profit declined 21.3% to RM83.3 million, or 137 sen per share, from RM105.87 million or 174 sen per share in the prior year. Revenue stood at RM902.25 million, 2.2% lower than RM922.43 million a year ago.

On prospects, Panasonic said the company's outlook remains cautious due to the general slowdown in both domestic and export markets.

"Exports to the Middle East market have been affected by the increasing trade sanctions imposed by the US on certain Middle East countries and also the lack of liquidity in the market," said Panasonic, adding that the company's operations remain affected by lower sales, rising cost of materials and volatile foreign currency exchange rates.

Nonetheless, Panasonic noted that continuous efforts are being made to reduce overall costs of production and remain competitive.

Shares of Panasonic dropped eight sen to close at RM38.12 on Bursa, giving it a market capitalisation of RM2.32 billion.