Pioneer quits plasma screen business
7 Mar 2008 | 11:24 GMT
Too many losses
AFTER MAKING A LOSS for the fourth year running, Japanese consumer electronics outfit Pioneer Corp said it would give up making plasma displays.
Pioneer is the currently the world's fifth-biggest plasma TV maker, but can't seem to make much money at it.
The firm, said it expects to post a group net loss of 15 billion yen ($145 million) for the year to March 31. It had thought it would make a six billion yen profit.
Dropping plasma, "will allow us to transform our business model for displays from vertically integrated, capital-intensive operations to a leaner business model geared to making value-added product proposals," Pioneer said in a statement.
The decision will cost the firm a charge of 19 billion yen ($185 million), but it reckons it'll help it make a profit again by 2010. µ
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