Overseas TV companies fall into trouble: Panasonic downgrades Sony

(Reporter Liu Xinyu) The news of Panasonic's "broken arm" shutting down a number of panel makers is still digesting. Another Japanese company giant Sony also handed in a loss report card and had to pass measures such as reducing sales targets. We will strive to make the TV business profitable in FY2013. Although European and American companies, including Philips, have no intention of playing in the television business, the stripping has become extremely difficult because of the bad environment.

Overseas companies: Unsatisfactory performance S&P’s latest report lowered Panasonic's long-term corporate credit and debt rating from “A+” to “A”, with negative outlook. Previously, Matsushita Group began production of an 8.5-generation LCD panel production line in Himeji, Japan, in April 2010. When it is put into production in 2012, some production capacity will be converted into high-yield small and medium-sized panels for tablet PCs.

At the same time, Matsushita Electric announced that it will sell its LCD panel plant in Mobara City, Chiba Prefecture. Matsushita Electric Co., Ltd. was forced to make a severed gesture even on Panasonic’s most heavily relied plasma TVs and panels. According to sources, the Matsushita Group’s third plant in Amagasaki, which produces plasma TV display panels, will stop production.

At the end of last month, Panasonic announced a net loss of 300 billion yen, or 3.95 billion U.S. dollars, for the fiscal year ending in March 2012.

Sony sent a report to the reporter yesterday about "Improving the profitability of television services." The reporter learned that in the medium-term plan released in November 2009, Sony announced that its TV business in fiscal year 2012 has gained 20% of the global market share, or the goal of selling 40 million TV products could not be achieved.

Sony adjusted its television sales in fiscal year 2011 to 20 million units. In the performance report released the day before yesterday, Sony revealed that due to the appreciation of the Japanese yen and the sluggish sales in major markets such as Europe and the United States, and the continued loss of television services, Sony will have a net loss of 27 billion yen (3.46 billion U.S. dollars) in the second quarter.

On the other day, Philips officially announced that it will transfer its television business to a joint venture with TPV. Although it has long since resolved to spin off its television business, it has not yet been finalized. In the third quarter of this year, Philips’ consumer electronics business suffered a loss of 54 million euros.

Chinese Enterprises: Lost Policy Crutches China's color TV companies have produced brilliant transcripts in the first three quarters of this year. According to the three quarterly reports released by TCL and Hisense Electronics, the net profit of the two color TV giants in the third quarter reached 260 million yuan and 368 million yuan respectively. Among them, Hisense Electric increased by 75.07% year-on-year, and TCL suffered a loss of 657 million yuan in the same period last year. Although Skyworth Digital's 2011-2012 semi-annual report is not officially released until the end of November, JP Morgan's latest research report has pointed out that its net profit will increase by 107% year-on-year.

But Yang Dongwen, vice president of Skyworth Group, believes that with the gradual withdrawal of nationwide financial subsidy policies such as energy-saving benefits, home appliances to the countryside, and trade-in replacements, the home appliance industry that has lost its policy stick will usher in a shuffle. This also implies that many domestic color TV companies still have a big crisis behind the bright report card.