Pioneer stops production of plasma panels Page: 1
On Friday, Pioneer Corp. released a statement informing that they will stop making plasma display panels in an effort to turn around its money-losing business.
Pioneer plans to procure the panels, used in flat-panel TVs, from another company. It said it was in talks with Japanese rival Matsushita Electric Industrial Co., which makes Panasonic products, to purchase plasma display panels.
Pioneer used to be one of the leading developers of the technology but has fallen behind bigger companies like Matsushita and South Korea's Samsung Electronics Co. and LG Electronics Inc.
Pioneer said in there statement, "We have judged that maintaining the cost competitiveness of plasma display panels, or PDPs, at projected sales volumes will be difficult going forward,"
Pioneer is sinking into the red for the fiscal year ending March 31, racking up a 15 billion yen ($145.6 million) loss for charges for restructuring its PDP TV business. It had previously forecast a 6 billion yen ($58 million) profit.
The decision to pull out of plasma TV panel production will chalk up a one-time cost of 19 billion yen ($184.5 million). But Pioneer said it will return to profit for the fiscal year ending March 2010.
Read the full story here.
Do you think Pioneer will bounce back from these losses? Discuss in our forum.