updated 02:35 pm EDT, Fri April 25, 2008
JVC Losses in Q1 2008
JVC today announced a major turnaround effort as an attempt to recover its ailing HDTV business. The Japanese electronics maker reported a dramatic year-over-year increase in losses from roughly $75 million to $455 million and says that the drops will require the company move its production to factories in less expensive locations. Plants in Scotland and JVC's home country will be switched off in favor of less expensive production in Poland and Thailand respectively, the company says.
The company also plans to shift its emphasis to the more lucrative large TV business and will focus at least its Japanese efforts on 42-inch and larger LCDs. American plans haven't been discussed.
Most of the immediate loss comes from shutting down already unprofitable business operations, JVC says. The company nonetheless argues that its TV business still needs restructuring as its more traditional rear-projection and tube TV businesses have also been dropping as buyers choose flat-panel displays over the less expensive but limited feature set.
TV sales in the US have typically been driven manufacturers such as Samsung and Sony at the high end as well as budget manufacturers, including Vizio.