Shares in Panasonic have plunged with analysts claiming that they see little future for plasma, a TV technology which was backed heavily by the Japanese Company.
Late today shares in the Japanese Company who are a big backer of the Olympic Games in London and plasma TV technology fell to the lowest level in 34 years after the Company reported a $5.49 billion fiscal-fourth-quarter loss.
Panasonic shares declined 4.7 percent to 543 yen, the lowest in day trading since January 1978.
The maker of Viera TVs joined Sony in predicting profit that lagged behind estimates as global TV demand falls and Japanese companies lose market share to South Korean competitors Samsung and LG said Bloomberg.
Panasonic’s TV sales this year will decline to 15.5 million units from 17 million units last year, the company said May 11. The company will lose money from selling TVs this year, Tetsuya Yoshimoto, a group manager at its accounting unit, told reporters.
Panasonic is promoting Kazuhiro Tsuga, its 55-year-old chief of audiovisual products, to replace President Fumio Ohtsubo, 66, as the company tries to speed up reforms. Sony and Sharp are also replacing top management as they struggle to revive earnings.
Late last year Panasonic aquired Sanyo a brand that has been doing extremly well in the Australian budget TV market, yet despite the success of the brand Panasonic has said that they will not continue selling Sanyo branded TV’s which have sold well in Big W and Dick Smith stores.