Pioneer Plasma TV Production Ends, Company Posts Losses
By: Jerry Carter
Published: Mar 7, 2008
Updated: Mar 11, 2010
Pioneer Exits Plasma TV Production
Plasma TV maker, Pioneer, will post a disappointing loss for the fourth straight year.
Plasma TV manufacturer, Pioneer Corporation, said it would fall below expectations and into the red for the fourth straight year. The company will exit from Plasma TV product to refocus on new strategies.
Pioneer is expected to now turn to Panasonic brand maker Matsushita to supply it with panels for its plasma TVs, thereby allowing it to focus on design and marketing and save on production costs.
Pioneer is the world's fifth-biggest plasma TV maker, but it has been struggling to compete with larger rivals such as plasma industry leader Matsushita and LG Electronics.
The company, which also makes home stereos and car electronics, said it now expects to post a group net loss of $147 million for the year, compared with its previous forecast of a $59 million accumulated profit.
The new forecast reflects $186 million in losses to write down the value of its plasma panel production facilities.
{slot15}"This move will allow us to transform our business model for displays from vertically integrated, capital-intensive operations to a leaner business model geared to making value-added product proposals," Pioneer said.
However, pulling out of plasma production marks a major shift in Pioneer's strategy. The international company has spent a little over $979 million to build four plasma panel production lines and to buy two more lines from NEC Corporation.
Pioneer said it would now refocus its resources on more promising businesses such as car electronics and audio equipment.
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