Log In   |  Register Free Newsletter Subscription
Skip navigation
Zibb
Subscribe to TWICE
RSS
Reprints/License
Print
Email

Pioneer Exits TV Business As Losses Mount

By TWICE Staff -- TWICE, 2/12/2009

Tokyo — Pioneer Electronics will exit the TV business by March 2010, cut 10,000 jobs worldwide and center on car electronics and other home electronics businesses.

Pioneer made the announcement as it posted operating and net losses, as well as lower sales, for its fiscal third quarter, ended Dec. 31, and is projecting a record net loss of 130 billion yen, or $1.44 billion, for its fiscal year ending March 31.

The company plans to cut 6,000 full-time employees worldwide and 4,000 temporary workers.

Pioneer said in a statement it is exiting the TV business because “recent market conditions have changed far more than initially anticipated, and Pioneer has decided to withdraw from the display business after concluding there are no prospects for improving profitability under current conditions.”

In DisplaySearch’s 2008 fourth-quarter market share report, Pioneer ranked fifth in U.S. plasma TV market, with a 2.6 percent share, down 4 percent from the prior quarter and down 9 percent year over year.

The company said it will continue to provide after-sales services even after the withdrawal from the market.

While Pioneer acknowledges that car electronics is “severely affected by lower demand” for cars, it expects a recovering in fiscal year 2011, ended March 31, 2011, and will shift its TV resources to emphasize telemantics.

In its home electronics business Pioneer will center on audio products, DJ equipment and cable TV set-top boxes and will emphasize “‘sound’ as we take advantage of our extensive audio technologies and expertise developed over the years.”

In its optical disc business Pioneer is “considering measures for improving profitability, including forming a joint venture.”

Pioneer reported a 37.8 percent drop in sales during its fiscal third quarter, to $1.44 billion, an operating loss of $117.8 million and net loss of $287.3 million. In the prior year’s third quarter Pioneer reported net income of $18.7 million

As with other Japanese CE makers, the combination of the worldwide recession and the exchange rate between the yen and the U.S. dollar and euro drove losses deeper than expected.

RSS
Reprints/License
Print
Email
Talkback
Related Content
» MORE

Advertisement
More Content
  • Blogs
  • Photos

Steve Smith

Viewpoint

Steve Smith
November 13, 2009
CEA Podcast: The Future Of Retail
At last month’s CEA Fall Forum in Phoenix, yours truly had the pleasure of...
More

John Laposky

Reporters Notebook

Managing Editor
November 13, 2009
Color Wars
As I have said before in this forum, CE companies seem to save their best ads for...
More

VIEW ALL BLOGS RSS
CE Hall of Fame lineup

2009 Consumer Electronics Hall of Fame Induction

CEA Celebrates Class of ''09 CE Hall Of Famers
PC Richards Family

P.C. Richard & Son's 100th Anniversary Celebration

P.C. Richard & Son's 100th anniversary celebration and charity event, held this past Saturday night at the New York Marriott Marquis.
Executive director Richard Glikes

HTSA's Syncretic Synod In St. Louis

Photos from the HTSA event held earlier this week.
» VIEW ALL GALLERIES

marketing module graphic, twice
Advertisement
TWICE Resource Center
NEWSLETTERS
TWICE eNews Daily
TWICE Retail eWeekly



Please read our Privacy Policy

About Us   |   Advertising Info   |   Site Map   |   Contact Us   |   FREE Subscription   |   Affiliate Links
© 2009 Reed Business Information, a division of Reed Elsevier Inc. All rights reserved.
Use of this Web site is subject to its Terms of Use | Privacy Policy
Please visit these other Reed Business sites