Panasonic plans to scale down TV business and halt production of plasma displays
Tokyo, Japan (4E) – Struggling Japanese consumer electronics company Panasonic said it will scale down its TV business and exit from production of plasma displays.
Company spokeswoman Chieko Gyobu said on Monday that Panasonic is currently looking for growth opportunities for its TV business. The previous day, spokeswoman Megumi Kitagawa said the company could consider growth for its health-care business, although did not say on whether there are plans to sell the unit.
Panasonic mulls shutting down its TV plasma panels plant in Amagasaki by fiscal 2014, and had already written off the value of equipment at the facility by fiscal 2011, according to the report released by the company.
The company is slashing more manpower and selling its assets as it estimates to suffer a 765bn yen net loss in the fiscal year ending March as it faces intense competition from Samsung Electronics Co. and Apple.
The Nikkei reported Monday that Japan’s second-largest television manufacturer is considering getting out of the plasma TV business while lowering manufacturing volume of liquid-crystal displays. The report also said that the company plans to increase outsourcing to companies like South Korean electronics giant LG Electronics Inc.
Despite the huge net loss, Panasonic posted a nine-month operating profit of 121.95bn yen ($1.29bn) last month mainly due to fixed cost reductions and material expenditure streamlining.