Japan’s Panasonic Warns For Record $9 Billion

Posted on Feb 3 2012 - 6:48am by Editorial Staff

According to Reuters, Japanese consumer electronics Panasonic Corporation is likely to forecast a record net annual loss of more than $9.2 billion. Panasonic’s is following the suite as per from rivals Sony Corp and Sharp Corp which results in for a combined losses of $6.7 billion.

“Panasonic, like Sharp and Sony, has structural problems,” said Makoto Kikuchi, CEO of Myojo Asset Management in Tokyo, noting all three need to come to grips with problems in their TV businesses. “At the core of our latest restructuring was to make our TV unit profitable,” Ohtsubo told reporters. “Panasonic’s TVs may one day be a case study of a recovery,” he added, citing an example of Japanese material companies that spent 50 years to develop successful carbon composites.

If Panasonic’s market share “keeps shrinking by 10 percent or so they may need to prepare some more restructuring,” said Shiro Mikoshiba, analyst at Nomura Holdings in Tokyo. It is also predicted by DisplaySearch that by 2015 the global sales of liquid crystal TVs will account for 8% to $92 billion – even, in plasma sets market, that Panasonic dominates – will shrink 38% to $7 billion.

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Editorial Staff at I2Mag is a team of subject experts led by Karan Chopra.