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 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).
"It looks like the iPhone 4 might be their Vista, and I'm okay with that." -- Microsoft COO Kevin Turner
Panasonic Looking to Shed 17,000 Workers over Next Two Years
April 28, 2011, 11:49 AM
More Evidence Points Towards 1GB of RAM for iPhone 6, iPhone 6 Plus
September 16, 2014, 3:35 PM
D-Link Offers Lower Priced Wi-Fi Smart Plug to Remotely Power On/Off Your Devices
September 16, 2014, 2:22 PM
Microsoft Hopes Android, iOS Users Will Check Out Its Mobile Universal Keyboard
September 16, 2014, 1:51 PM
China Mobile Looks to iPhone, Galaxy Smartphone Subsidies, Will Push Cheap 4G Phones
September 16, 2014, 11:24 AM
Quick Note: NVIDIA Offers Up 32GB, LTE-equipped SHIELD Tablet for Pre-order
September 16, 2014, 10:22 AM
PayPal Takes Potshot at Apple Pay, Mentioning iCloud Breach in New Ad
September 16, 2014, 7:24 AM
Most Popular Articles
Dell Announces "World's Thinnest" Tablet: The Venue 8 7000 Series
September 11, 2014, 8:51 AM
Quick Note: Buy an Xbox One Sept 7-13, Get a Free Game
September 4, 2014, 10:42 AM
Apple Announces Its Smartwatch: The $349 Apple Watch
September 9, 2014, 2:09 PM
T-Mobile Launches Un-carrier 7.0, Beefs Up Wi-Fi Calling
September 11, 2014, 2:56 PM
Russian Hackers Compile List of 10+ Million Stolen Gmail, Yandex, Mailru
September 11, 2014, 11:41 AM
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