The Wall Street Journal, in an article headlined "Panasonic to Pare Unprofitable Units," (no link because the content is behind a subscriber wall—Google the title to get to the article), is reporting that Japan's Panasonic Corp., a maker of digital cameras and sensors, will reorganize in an attempt to target profitability over revenue. It will pare the number of its business units from 88 down to 49 and work to improve vertical integration within the units. In a departure from its usual practice, but in keeping with its new goals, it announced no new revenue targets.
As part of this restructuring, "...the company in late December agreed to sell a business making digital cameras for other companies' brands to a private-equity fund. Last month, it agreed to merge its system large-scale integration chip-design and -development operations with Fujitsu Ltd.'s to form a new company."
The company's woes stem in part from its flat-screen TV division.
(Thanks to mcd)
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D. Hufford: "The main reason Japanese TVs are doing poorly is that Korean TVs are doing well and at a cheaper price. Just ask an employee of one of the Japanese companies. Pretty commonly known in Japan. Of course there are other reasons too, one being that the TV market is saturated. The question is: Is Panasonic gonna continue sinking money down the TV hole? Panasonic is not the only TV maker in trouble; all of the Japanese makers are."