Japanese technology giant Panasonic announces a new chief as its profits barely hold up

TOKYO (AP) – Japanese electronics and technology company Panasonic has chosen a new chief executive after eking out a 1.2% rise in its first quarter profit.

Kenneth William Sain, a former Boeing executive, will replace Yasuyuki Higuchi as Panasonic’s president and chief executive in April 2026, the company said Wednesday.

Sain joined Panasonic in 2019 as CEO of Panasonic Avionics.

“Ken is an exceptional leader with extensive global experience and a deep understanding of business and technology,” Higuchi said in a statement.

Panasonic Holdings Corp.’s April-June profit totaled 71.46 billion yen ($483 million), up from 70.6 billion yen. Its quarterly sales declined 10.6% from last year to 1.9 trillion yen ($12.8 billion).

The Osaka-based maker of home appliances, solar panels and batteries for Tesla vehicles kept its full year profit forecast unchanged at 310 billion yen ($2.1 billion), down 15% from the previous year.

Panasonic said the impact from U.S. President Donald Trump’s tariffs was not yet fully factored in. The company said it will try to minimize the effect on its operating profit with cost cuts and other measures.

Consumer electronics sales were strong in Japan, Panasonic said, while they were also healthy in China, supported by subsidies.

On the positive side, it said demand for AI servers and air-conditioners was expected to grow. But concerns remain about slowing demand for electric vehicles because of U.S. tariffs and the ending of tax credits.

Panasonic also said it’s planning to get rolling later this year its new lithium-ion battery factory in Kansas, whose start has been delayed.

Panasonic said in May that it was slashing its global workforce by 10,000 people, half in Japan and half overseas, to become “lean.” The job cuts amount to about 4% of its workforce.