Sony, which recently posted a group operating
loss of 227.8 billion Yen (US$2.4 billion; US$1=95.8 Yen) for fiscal 2008 ending
in March, is expected to continue with consolidation and termination of
manufacturing facilities well into fiscal 2011, Kyodo News International
reported on May 14, 2009. Imminently, Sony is about to cease TV production at its
Aichi facility in Japan. Manufacturing operations in Chiba, Shizuoka, and Iwate
prefectures are planned to be shut down as well. In addition, the company is
also expected to discontinue LCD (Liquid Crystal Display) TV production in
Mexico and flexible flat cable manufacturing in Indonesia. Overall, it is
estimated that eight of Sony's manufacturing facilities worldwide will be
shuttered in the short run. Sony is expecting a group net loss of 120.0 billion
Yen (US$1.3 billion) for the current fiscal year ending in March 2010, with
sales forecasted to drop 6% to 7.3 trillion Yen (US$76.2 billion). As the
company is expected to carry on with production facility consolidations and
personnel cuts until fiscal 2011, its restructuring costs are projected to
remain at a relatively high level and affect its earnings.
At the same time, two other Japanese electronics
manufacturers Toshiba and Hitachi are also closing flat-panel TV plants
overseas, according to a May 14 Reuters report. Toshiba's UK unit is expected
to cease LCD TV assembly at a Plymouth plant by the year-end, with 80% of the
workforce to be affected by the shutdown. Meanwhile, Hitachi has just shuttered
a flat-panel TV production facility in the Czech Republic, with approximately
800 workers affected. Hitachi's production for the European market is expected
to be outsourced to contract manufacturers, according to the report.