The Nikkei reports that Panasonic will sell off one production line from its LCD panel business at its Himeji plant. It is also looking to restructure five other businesses. It will exit the domestic solar panel business and get out of a semiconductor JV business and three further businesses will be re-organised into other divisions. These are the digital camera, telephone system and optical disk drive businesses.
Analyst Comment
Panasonic has had some good products in the digital camera business and so this decision highlights how tough that business is. Dropping out of the LCD business is less surprising, but if the company can’t make that business profitable under current market conditions, it’s unlikely ever to achieve it. (BR)
