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Pioneer Posts Record $1.35B Net Loss for Fiscal 2008
Marks fifth straight year in the red for Pioneer, which expects another net loss for the current year.
Pioneer has announced a net loss of $1.35 billion (130.53 billion yen) for fiscal 2008, marking its biggest loss ever and fifth consecutive year in the red, according to The Wall Street Journal.
The Japanese manufacturer, which expected its net loss to be $1.4 billion, attributes the losses to weaker demand for plasma TVs and a stronger yen.
Pioneer also reported it worst operating loss (54.53 billion yen) compared to a profit of 9.22 billion yen one year earlier. Sales dropped 27.8 percent to 558.84 billion yen. Here's Pioneer's complete financial report (pdf).
The company expects a net loss of 83 billion yen for fiscal 2009 and hopes to become profitable again by fiscal 2010 by reducing costs by 47 billion yen. Pioneer's cost-cutting measures include:
According to The Wall Street Journal, Pioneer is considering applying for public funds, and it plans to sell a 6.5 percent stake to Honda Motor to raise 2.5 billion yen in new funds.
The Japanese manufacturer, which expected its net loss to be $1.4 billion, attributes the losses to weaker demand for plasma TVs and a stronger yen.
Pioneer also reported it worst operating loss (54.53 billion yen) compared to a profit of 9.22 billion yen one year earlier. Sales dropped 27.8 percent to 558.84 billion yen. Here's Pioneer's complete financial report (pdf).
The company expects a net loss of 83 billion yen for fiscal 2009 and hopes to become profitable again by fiscal 2010 by reducing costs by 47 billion yen. Pioneer's cost-cutting measures include:
- Cutting 10,000 jobs by March 2010
- Withdrawing from the plasma TV market
- Cutting capital spending by 45 percent to 25 billion yen
"The current sour conditions are expected to continue throughout the first half of this business year, but we anticipate a recovery trend to emerge from the second half. I believe we will definitely be able to return to the black from the next business year."
According to The Wall Street Journal, Pioneer is considering applying for public funds, and it plans to sell a 6.5 percent stake to Honda Motor to raise 2.5 billion yen in new funds.
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About the Author
Steve Crowe, Web Editor
Steve is an editor for cepro.com. He graduated from Emerson College with a B.A. in Journalism. He joined the CE Pro staff in 2008. Steve is also a freelance sports writer for The Boston Globe and other various publications.
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Pioneer made their bed and now they can sleep in it.
A few years ago Pioneer went on a rampage to drop many of the custom installers who supported their products, but had no showrooms to demonstrate them in. Many of these dealers worked for several year to help build the enviable position Pioneer and their Elite division enjoyed. Pioneer’s inability to understand this market, plus their apparent need to try to price their products competitively surely helped lead to their demise. When you make a superior product (as they did) history has shown you can charge a premium for it. Instead they tried to ‘play in the fray’ and got what they deserve. Hopefully this lesson will not be lost on other large vendors that are trying to fill the void left by Pioneer.