Matsushita Net Plunges; Cost of MCA Deal Cited
Japanese electronics giant Matsushita Electric Industrial Co. on Tuesday reported a sharp drop in profit for the quarter that ended June 30, which it attributed to its $6.1-billion buyout of Hollywood studio MCA Inc.
Net earnings fell 34% to $277 million from $422 million in the year-ago period. Matsushita said its pretax profit dropped 24% to $698 million from $910 million.
Sales in the quarter, the first in the company’s fiscal year, were $12.8 billion, up from $11.4 billion in the same period last year.
Matsushita bought MCA, which owns Universal Studios, for $6.13 billion in December, 1990, the biggest-ever acquisition by a Japanese firm.