Post by pmp on Feb 7, 2009 13:23:15 GMT -5
* ASIA TECHNOLOGY
* FEBRUARY 7, 2009, 8:21 A.M. ET
Pioneer May Abandon Production of LCD TV Sets
online.wsj.com/article/SB123398482356760019.html
By DAISUKE WAKABAYASHI
TOKYO -- Pioneer Corp. said it is considering all options for its company including a possible withdrawal from its loss-making flat-panel television as part of an ongoing review of its businesses.
A Pioneer spokeswoman said it is reviewing all possibilities, but said no final decision has been made with the company's mid-term business plan, which is due to be announced later this month.
The comments come on the heels of a report in the Nihon Keizai Shimbun business daily which said Pioneer plans to pull out of its television business and spin off its DVD player operations into a joint venture with Sharp Corp.
The global economic slowdown and a strong yen are exacerbating problems plaguing Pioneer's struggling home electronics business. Pioneer has been getting squeezed by larger competitors who are lowering prices at a pace faster than the company can slash costs.
As consumer grinded to a halt in the October-December quarter, Pioneer's rivals cut prices even more drastically to prevent an inventory build-up. In its fiscal second quarter ended Sept. 30, Pioneer said home electronics sales fell 30% and operating losses widened to 7 billion yen from 4.1 billion yen a year ago.
Pioneer is expected to announce its fiscal third-quarter results on Thursday.
Last year, Pioneer said it would stop making its own plasma display panels, opting to buy panels from Panasonic. It had planned to start building LCD television sets using panels bought from rival Sharp.
* FEBRUARY 7, 2009, 8:21 A.M. ET
Pioneer May Abandon Production of LCD TV Sets
online.wsj.com/article/SB123398482356760019.html
By DAISUKE WAKABAYASHI
TOKYO -- Pioneer Corp. said it is considering all options for its company including a possible withdrawal from its loss-making flat-panel television as part of an ongoing review of its businesses.
A Pioneer spokeswoman said it is reviewing all possibilities, but said no final decision has been made with the company's mid-term business plan, which is due to be announced later this month.
The comments come on the heels of a report in the Nihon Keizai Shimbun business daily which said Pioneer plans to pull out of its television business and spin off its DVD player operations into a joint venture with Sharp Corp.
The global economic slowdown and a strong yen are exacerbating problems plaguing Pioneer's struggling home electronics business. Pioneer has been getting squeezed by larger competitors who are lowering prices at a pace faster than the company can slash costs.
As consumer grinded to a halt in the October-December quarter, Pioneer's rivals cut prices even more drastically to prevent an inventory build-up. In its fiscal second quarter ended Sept. 30, Pioneer said home electronics sales fell 30% and operating losses widened to 7 billion yen from 4.1 billion yen a year ago.
Pioneer is expected to announce its fiscal third-quarter results on Thursday.
Last year, Pioneer said it would stop making its own plasma display panels, opting to buy panels from Panasonic. It had planned to start building LCD television sets using panels bought from rival Sharp.