Print 12 comment(s) - last by The Raven.. on Nov 1 at 11:20 AM

Panasonic's loss is the largest in a decade

The TV and electronics market around the world is still recovering. With some parts of the world slipping back into economic turmoil profits for some companies are down significantly. One of the companies that is reporting a significant loss is Panasonic. In fact, Panasonic is reporting its biggest loss in the last ten years.
Panasonic's latest quarterly earnings show that the company lost $5.5 billion. The big loss is blamed in part on restructuring costs, a yen that is soaring compared to other currency, and weak demand for TVs and other products in Europe and America. TV shipments is a very weak spot for Panasonic with major losses coming from that division.
In April of this year, Panasonic reported that it would be looking to shed 14,000 workers over the next two years. With a loss this massive, the paring of workers may start sooner than expected. Reuters reports that Panasonic also notes it will stop producing LCDs at a plant it operates in Mobara in Japan near Tokyo. The massive loss has also resulted in Panasonic killing plans to ship production equipment to Shanghai where it had planned to make Plasma TVs. 
"The net loss of 420 billion yen includes an increase in the cost of restructuring. It has lowered the assumed exchange rates to 76 yen, which gives the company some buffer even if the dollar slips from the current level after today's intervention," said Hiroyuki Fukunaga, CEO of Investrust. "So even though it is reporting a loss, the market may think all the negative factors have been priced in, especially given that its share price has fallen about a third from around 1,200 yen at the beginning of this year."
This is the second largest quarterly loss Panasonic has ever reported. Panasonic has reduced its expected operating profit forecast to 130 billion yen from the previous estimate of 270 billion yen. The estimate Panasonic had in place for TV sales has been cut as well from 25 million units to 19 million units.

Source: Reuters

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By The Raven on 10/31/2011 12:20:52 PM , Rating: 2
I just bought one of their BD players a month ago. The thing is great and streams everything like a dream. This news better not affect my VieraCast lol. >:(

I also have one of their Lumix point-and-shoots and am very satisfied. Come to think of it I have never had issue with Panasonic devices. Why do I keep buying mostly Sammys and HPs? Idiot!

I guess this is where I realize that if I bought more Panasonics then I would realize that they have just as many issues as the others I mentioned. :-)

RE: Doh!!
By kensiko on 10/31/2011 1:04:28 PM , Rating: 3
Panasonic costs is usually more than the competition, they have the quality so the cost follows. Unfortunately not everyone wants the quality over the price.

RE: Doh!!
By The Raven on 10/31/2011 4:34:54 PM , Rating: 2
Hmm... I've always thought of them as "meh" pricing but in case of this BD player I got it for $160 including a copy of "'the'" Star Wars Trilogy and Avatar. There are a lot of brands out there and it is news like this that make me appreciate the choices we have (in this case Panasonic).

RE: Doh!!
By spread on 10/31/2011 11:05:28 PM , Rating: 2
Damn straight, I have one of their S2 series plasmas, an old projection HDTV and a stereo from who knows when. I could not be happier with their products. They're what Sony used to be back in the day. Quality.

Pricey and I can see why people go for cheaper items (or nothing at all) especially in this economy.

"Folks that want porn can buy an Android phone." -- Steve Jobs
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