Zenith Widens Q4 Loss, While Sales Drop 37%
Staff -- TWICE, 4/16/2001
LINCOLNSHIRE, ILL. — Low prices in the analog TV business had a direct effect on fourth-quarter and full-year 2000 financial results at Zenith Electronics, according to the company.
Zenith, which said it is de-emphasizing analog TV in 2001 while it pursues a digital product, sales and marketing strategy, reported a widening net loss from continuing operations before extraordinary item for the fourth-quarter ended Dec. 31. It reached $37.3 million, compared with a loss of $3.9 million in the same three months last year. The company reported an extraordinary gain of $70.2 million in the fourth quarter of 1999 from financial restructuring.
Fourth-quarter net sales in 2000 were $160.2 million, a 37-percent decline from the $219.4 million reported the same three months in the previous year. This lower figure reflects the planned reductions in analog products, Zenith said.
Zenith said its digital strategy is to build on the company's high-definition TV and display technologies from its parent, Korea-based LG Electronics.
For the year, Zenith recorded a loss from continuing operations before extraordinary item of $74.8 million, compared with a loss of $62.9 million in the previous 12 months. This excludes the company's discontinued Network Systems business. Sales reached $559.4 million, down about 32 percent from the $739.9 million registered last year.
Since November 1999, Zenith has been a wholly owned subsidiary of LG Electronics. Its stock is no longer publicly traded.
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