Japan's Pioneer expects sixth year in red

May 13, 2009
An electronics shop in Tokyo. Japan's Pioneer Corp. warned it would spend a sixth straight year in the red as it pulls the plug on its loss-making television business and slashes thousands of jobs

Japan's Pioneer Corp. warned it would spend a sixth straight year in the red as it pulls the plug on its loss-making television business and slashes thousands of jobs.

The troubled electronics maker said its net losses ballooned to 130.53 billion yen (1.36 billion dollars) in the year to March, up from 19.04 billion the previous year. It expects to lose 83 billion yen this year.

The company blamed the poor performance on slumping sales of car audio products, plasma displays and DVD drives.

In February it announced it would quit the television business, saying there was no prospect of a turnaround in the current climate.

It is slashing 10,000 jobs worldwide and shutting down its plasma display production facilities in the United States and Britain to focus on car electronics instead.

The group expects to book restructuring costs of 47 billion yen this year in response to what it described as "extremely challenging conditions".

Pioneer, which is 14.3 percent owned by ., is considering applying for public funds to help it through the slump. It also plans to sell a 6.5 percent stake to Honda Motor to raise 2.5 billion yen in new funds.

Other Japanese high-tech giants have also been badly affected by the , which has sapped demand for their products and sent the yen soaring, eating away at their export earnings.

(c) 2009 AFP

Explore further: Japan's Sharp sees deeper net loss

Related Stories

Japan's Sharp sees deeper net loss

April 8, 2009

Japanese electronics giant Sharp Corp. said that it had fallen deeper in the red than expected in the past year, suffering its first-ever loss due to the economic downturn.

Toshiba expects bigger loss, contract job cuts

April 17, 2009

(AP) -- Toshiba Corp., Japan's top chipmaker, Friday said its net loss for the last fiscal year will be bigger than forecast due to a large write-off, and warned that more contract jobs will be cut.

Recommended for you

Samsung to disable Note 7 phones in recall effort

December 9, 2016

Samsung announced Friday it would disable its Galaxy Note 7 smartphones in the US market to force remaining owners to stop using the devices, which were recalled for safety reasons.

Swiss unveil stratospheric solar plane

December 7, 2016

Just months after two Swiss pilots completed a historic round-the-world trip in a Sun-powered plane, another Swiss adventurer on Wednesday unveiled a solar plane aimed at reaching the stratosphere.

Solar panels repay their energy 'debt': study

December 6, 2016

The climate-friendly electricity generated by solar panels in the past 40 years has all but cancelled out the polluting energy used to produce them, a study said Tuesday.

0 comments

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.