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Last Updated: Tuesday, 21 February 2006, 16:17 GMT
Multiple problems fuel JVC losses
JVC showroom in Tokyo
JVC has struggled to keep up with new technologies
Electronics maker JVC nearly triples its forecasted annual losses, blaming poor sales of traditional TVs and the cost of fixing faulty DVD recorders.

The company, which is 52.4% owned by Panasonic-maker Matsushita Electric Industrial, also blamed poor sales of blank compact discs and cameras.

Japan-based JVC now expects to post a net loss of 29.5bn yen ($250m; 143m) for its business year to 31 March.

This compares to the previous loss estimate of 11.5bn yen.

For the 12 months to 31 March 2005, JVC's loss was 1.86bn yen.

It has also now cut its annual sales forecast by 4% to 825bn yen.

Achilles' heal

A JVC spokeswoman said the firm had been particularly hit by falling demand for traditional cathode ray tube (CRT) televisions in North America.

The company continues to lag behind its rivals in switching production to liquid crystal display (LCD) and plasma flat screen models.

It has also been hit by falling sales of mini-disk personal music players as consumers buy increasing numbers of digital models such as Apple's iPod.

Analysts have long regarded JVC as Matsushita's Achilles heel.

JVC is continuing efforts to turn around its fortunes.


SEE ALSO:
Matsushita to build plasma plant
10 Jan 06 |  Business
Japan's electronic firms squeezed
28 Apr 05 |  Business
Matsushita suffers $1.3bn loss
21 Feb 02 |  Business


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