Breaking News
FONT-SIZE Plus   Neg
Share SHARE

Reports: Panasonic To Shut Plasma TV Plant In Shanghai

Japanese consumer electronics giant Panasonic Corp. (PC: Quote) will shut down its plasma television assembly plant on Shanghai as part of the company's efforts to streamline its flagging television business, according to media reports on Friday.

Panasonic's majority-owned joint venture with a Chinese company for the purpose of running the factory will be liquidated. The Shanghai plant has reportedly stopped operations.

According to the media reports, the operations at the Shanghai plant will be transferred to another factory in China's Shandong province, where it currently produces LCD television sets.

Although the plasma technology was initially considered for Panasonic's wide-screen televisions, rapid developments in LCD panels have made it difficult for the company to generate profits from plasma televisions. LCD televisions now dominate the market.

Media reports in November 2012 had indicated that Panasonic will slash another 10,000 jobs by the end of March 2013 as about 20 percent its 88 business units were losing money.

The 94-year-old company is in the process of cutting costs after it projected in October a staggering $10 billion loss for fiscal 2012 on asset write downs and restructuring charges. This will also take the cumulative losses in the past five years to nearly $25 billion.

Panasonic reportedly targets group operating profit of at least 200 billion yen or $2.5 billion in the year ending March 2014, primarily through sale of about $1.4 billion worth of land and buildings in Japan.

Panasonic reported its last annual profit in 2010. The company is expected to announce a turnaround plan by end-March 2013.

PC closed Friday's trading at $6.26, up $0.16 or 2.62 percent on a volume of 168,489 shares.

Register
To receive FREE breaking news email alerts for Panasonic Corp. and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Stocks moved notably higher over the course of the trading day on Friday after initially showing a lack of direction. The gains on the day extended the recent upward trend by the markets, with the tech-heavy Nasdaq reaching its best closing level in almost a month. Looking to capitalize on news of an Ebola diagnosis in New York City, Republican Senate candidate Scott Brown issued a statement Friday criticizing his Democratic opponent Sen. Jeanne Shaheen, D-N.H., for "waffling" on a travel ban. In another troubling sign for Democrats, the results of a Gallup poll released on Friday show that Tea Party Republicans are much more motivated to vote in the upcoming midterm elections than other Americans. The poll found that 73 percent of Tea Party Republicans are "extremely" or "very" motivated to vote in this year's elections.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.