Panasonic Loses $5.5B in Latest Quarter
October 31, 2011 11:26 AM
comment(s) - last by
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.
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.
This article is over a month old, voting and posting comments is disabled
10/31/2011 1:04:28 PM
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.
10/31/2011 4:34:54 PM
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).
10/31/2011 11:05:28 PM
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.
"And boy have we patented it!" -- Steve Jobs, Macworld 2007
Panasonic Looking to Shed 17,000 Workers over Next Two Years
April 28, 2011, 11:49 AM
Report: All 15" MacBook Pros to Receive 16GB RAM Standard Starting Tomorrow
July 28, 2014, 8:12 AM
Sony's Xperia Z3 Gets Detailed in Leaked Photos
July 25, 2014, 2:30 PM
Heavy Users of Verizon’s “Unlimited” LTE Data Could Soon See Targeted Throttling
July 25, 2014, 1:52 PM
Motorola Moto X+1 Makes Appearance in Leaked Photos
July 25, 2014, 12:06 PM
Sony Finally Adds 3D Blu-ray Support to PS4
July 24, 2014, 3:44 PM
IDC: Although Apple Remains at Top of Tablet Market, Share Falls from 33% to 26.9%
July 24, 2014, 1:24 PM
Most Popular Articles
JJ Abrams Unveils X-Wing Starfighter for New "Star Wars" Movie
July 21, 2014, 12:24 PM
Ford Details ’15 F-150’s 325hp, 2.7L EcoBoost V6; Demonstrates 732-lb Weight Loss
July 22, 2014, 6:55 PM
Comcast Memo: Harassing Customers During Retention Calls Actually IS Our Policy
July 22, 2014, 5:19 PM
Kindle Fire Phone Review Roundup -- A Solid "Meh"
July 23, 2014, 2:09 PM
Motorola Moto G Successor Reportedly Uncovered, Moto X Discounted by up to $75
July 21, 2014, 1:11 PM
Latest Blog Posts
Space Terrorism is a Looming Threat For the United States
Apr 23, 2014, 7:47 PM
Facebook Aims to Provide Internet to "Every Person in the World" with Drones, Satellites
Apr 1, 2014, 10:20 AM
Retail Mobile Sites Experience Outages in Light of Simplexity's Bankruptcy
Mar 14, 2014, 8:48 AM
Tesla vs. BMW: Who Has the Safer EV?
Feb 1, 2014, 2:56 PM
Justice Leaks Details of Next HTC One Two Flagship Phone
Dec 5, 2013, 4:04 PM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information