Profit at Matsushita Electric Industrial Co. for the April-June period nearly doubled from the previous year on solid global demand for flat-panel TVs and digital cameras, the company said Tuesday.

The popularity of such gadgets helped fend off the negative effects of a stronger yen and global price competition, Matsushita said.

Osaka-based Matsushita, which makes Panasonic brand products, reported a better than expected ¥73 billion profit for the fiscal first quarter. It had recorded a ¥39.3 billion profit the same period last year.

Despite the healthy sales of gadgets, which also included DVD recorders, quarterly sales dipped 4 percent to ¥2.152 trillion because of the elimination of sales from Victor Co. of Japan.

Matsushita reduced its stake in Victor to 37 percent from 52 percent last year. Sales from Victor and its subsidiaries had been booked as part of Matsushita sales until then.

Matsushita kept unchanged its forecast for the fiscal year through March 2009 at ¥250 billion profit, a 15 percent rise from the previous year. The sales forecast was kept at ¥9.25 trillion, a 2 percent gain.

While noting that cost reduction efforts helped lift its bottom line, Matsushita said it expects tough times ahead because of global economic woes, especially in the U.S.

The prices of electronic gadgets continue to fall, and the soaring costs of oil and other raw materials are also weighing on its prospects, it said.

The stronger yen hurt results for the latest quarter, when the dollar cost ¥105 on average, down from ¥118 the same period a year ago, according to Matsushita.

Separately, Matsushita said it will absorb its wholly owned battery-making subsidiary and make it a unit, effective Oct. 1.