By Lorna Brett

Japan’s biggest home appliance manufacturer, Panasonic, has returned to profit in the latest quarter and raised its full year forecasts due to boosted sales of products such as flat-panel TV’s, air conditioners and solar panels.

The company’s profit for the quarter ended June amassed to 43.7 billion yen, as compared with a 53 billion yen loss a year previous. Revenue for the quarter was up 35% to 2.161 trillion yen, thanks to improved sales across all categories. Japanese sales grew 23% year-on-year, with overseas sales performing even better, climbing to 50%.

Panasonic has now raised forecasts for the full year to March 2011 to an 85 billion yen profit on 8.9 trillion yen sales. Previously, the company was expecting a 50 billion yen profit on 8.8 trillion yen sales.

The company says it hopes to shape its growth strategy around “green innovation,” such as electric vehicles and solar panels. In its consumer electronics division, Panasonic is counting on growth thanks to VIERA flat-panel TV’s and LUMIX digital cameras.

Panasonic to control Sanyo 100%

The company also revealed news of its intentions to take 100% control over its subsidiaries Sanyo Electric Co. and Panasonic Electric Works Co. Sanyo Electric Co. makes batteries for green vehicles and solar panels for green homes, whilst Panasonic Electric Works Co. makes electric and housing equipment.

Sales in the Sanyo segment for the quarter totalled 413 billion yen, with operating profit reaching 5 billion yen. Sales of solar cells, car-related equipment such as car navigation systems, and optical pickups were strong thanks to economic stimulus programs in several countries as well as continuing demand expansion for PC’s.