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Hitachi Splits LCD Business From Company
3:20 PM EDT Tue. May. 26, 2009
The group will continue to create, manufacture and sell audio/visual-related equipment, mainly flat-panel TVs and commercial-use LCD projectors.
The Tokyo-based company said the move is an attempt to thwart continuing losses due to the worldwide economic downturn and the rapid price erosion of flat-panel TVs and other products.
"Hitachi has been pushing ahead with efforts to convert to a low-risk operating structure and improve earnings by implementing business structure reforms," the company said in a statement. "These reforms have included sourcing glass panel components used in plasma TVs from outside the Hitachi Group and right-sizing the workforce since the previous fiscal year."
Hitachi also said it expects that the spun-off company will bolster its B2B businesses, such as commercial-use LCD projectors.
The company first announced its intention for a split back in March. The official split is slated for July. Shutoku Watanabe, who was president and CEO of the Consumer Business Group, will continue to oversee the group as president and representative director.
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