(Reuters) – Japanese electric vehicle (EV) battery maker Panasonic (OTC:PCRFY) Holdings Corp on Wednesday forecast a higher operating profit this year as it expects robust auto battery sales in the United States.

The industrial conglomerate, which supplies batteries to U.S. EV leader Tesla (NASDAQ:TSLA) Inc, is expanding its energy business just as persistently high inflation rates worldwide dampen consumer sentiment.

Panasonic expects operating profit of 430 billion yen ($3.18 billion) for the year through March 2024, versus 288.6 billion yen a year earlier. That would compare to the 383.96 billion yen average of 20 analyst estimates compiled by Refinitiv.

For the fourth quarter of the year ended March 31, Panasonic posted operating profit of 54.4 billion yen. That compared with 83.4 billion yen a year prior and the 59.49 billion yen average of 12 analyst estimates.

($1 = 135.0500 yen)