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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Panasonic 3DO
By xcomvic on 10/31/2011 1:50:43 PM , Rating: 3
Anyone remember the 3DO? :) They should venture back into the video game would make it for interesting times in the console world... and yes, I remember GoldStar too:)

RE: Panasonic 3DO
By The Raven on 10/31/2011 4:36:24 PM , Rating: 2
Oh yeah, Star Control 2 all the way baby. I to this day listen to the soundtrack from time to time.

RE: Panasonic 3DO
By Samus on 10/31/2011 7:04:00 PM , Rating: 2
If you ever played that Zelda for 3DO, you'd eat those words recommending they get back into the videogame industry.

But then again, without 3DO, we would have never had the Playstation, and up until PS3 that turned out pretty good :)

RE: Panasonic 3DO
By themaster08 on 11/1/2011 5:51:22 AM , Rating: 2
I think you're confusing the 3DO with the Philips CD-i ;)

RE: Panasonic 3DO
By The Raven on 11/1/2011 11:20:11 AM , Rating: 2
Confusion: one of the problems with the 3DO (along with hmm...lemme think could it also be PRICE lol)

Good times... good times.

"If you can find a PS3 anywhere in North America that's been on shelves for more than five minutes, I'll give you 1,200 bucks for it." -- SCEA President Jack Tretton
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