Panasonic has reported net profits of Yen 32.3 billion (around £231 million) in the quarter to December 31 against a loss of Yen 63.1bn a year ago.

The Japanese consumer electronics giant said the significant improvement in its results was mainly due to a “comprehensive streamlining of management”.

Group sales for the nine months ended December 31 fell 16 per cent to Yen 5.2 trillion, compared with Yen 6.2 trillion a year earlier while operating profits fell 49 per cent to Yen 129.9bn from Yen 254.5bn.

The company said that while the global economy seemed to be on the way to recovery severe business conditions continued with the appreciation of the yen and “ever-intensified” global price competition.

It improved its forecast for the year with sales now expected to be Yen 7.4 trillion up from the previous forecast of Yen 7 trillion. Even so, it predicted that it would still make a pre-tax loss of Yen 140bn for the year ending March.