Matsushita Posts 370% Earnings Gain in 1994 : Electronics: But the company expects to post loss for 1995 because of exchange rate loss on last month’s sale of MCA Inc.

TOKYO —  Matsushita Electric Industrial Co. said Wednesday that its earnings for last year more than tripled, but it forecast a loss for this year because of its sale of an 80% stake in MCA Inc.

Matsushita, the world’s largest consumer electronics maker, said its earnings soared to $1.04 billion for the fiscal year ended March 31, from $281 million the previous year. Sales rose to $79.8 billion from $76.0 billion.

Analysts said the company, which owns the Panasonic, National and Technics brands, turned in a good earnings performance on the back of strong demand, particularly in Asia and the United States.

Osaka-based Matsushita also cited cost-cutting efforts as one reason for the recovery.

But Chief Financial Officer Motoi Matsuda said the company will suffer a massive foreign exchange loss on last month’s sale of its stake in U.S. entertainment giant MCA to Canadian beverage group Seagram Co. for $5.7 billion.

“Working with a dollar rate of 85 yen, Matsushita’s sale of MCA is likely to show up in our accounts as a 165 billion yen [$1.89 billion] foreign exchange loss,” he said.

Matsushita cited unanticipated changes in the American media market for the sudden sale, which followed a well-publicized dispute over management autonomy between senior Matsushita and MCA executives.

The exchange loss results from the yen’s rise against the dollar since Matsushita bought Los Angeles-based MCA for $6.1 billion in 1990.

Because of that loss Matsushita is likely to report a group net loss of $735 million in the year ended next March 31, Matsuda said.

Otherwise, group net profits would have risen 19% to $1.16 billion, he added.