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: Facebook CEO wants more students to explore tech

add to favorites email to friend print save as pdf

Related Stories

Japan's Sharp sees deeper net loss

Apr 08, 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.

Japan's Sharp reports 1.3 bln dollar annual loss

Apr 27, 2009

Japanese electronics giant Sharp Corp. announced an annual net loss of 1.3 billion dollars, its first ever, due to a slump in sales, but it forecast a return to profit this year.

Toshiba expects bigger loss, contract job cuts

Apr 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

Alibaba surges in Wall Street debut

3 hours ago

A buying frenzy sent Alibaba shares sharply higher Friday as the Chinese online giant made its historic Wall Street trading debut.

Alibaba makes Wall Street debut

8 hours ago

Alibaba made its long-awaited Wall Street debut Friday on the heels of a record stock offering that opens the door to global expansion for the Chinese online retail giant.

Alibaba IPO to boost employee fortunes to $8 bn

11 hours ago

Employees of Chinese e-commerce giant Alibaba will see their fortunes swell to nearly $8 billion as the company prepares a massive US stock offering that could be valued at $25 billion.

Alibaba mega IPO caps founder Jack Ma success tale

14 hours ago

When Jack Ma founded Alibaba 15 years ago he insisted the e-commerce venture should see itself as competing against Silicon Valley, not other Chinese companies. That bold ambition from a time when China was ...

User comments : 0