Sony sells their half of LCD production to Samsung

How tough is this Television business. Sony exits making the CORE part in the Television, the Panel. Not sure how this will work out for them long term given the 8 straight years of negative profit. In the CRT days their Tube and their Technology in the set kept them on top. But since moving to Projection TV , switch to 16 by 9 , and now with Flat Panel they have really lost their way. Need some good news from Sony, not more bad news!

JZ

Sony Sells Stake In S-LCD Joint Venture

By Greg Tarr -- TWICE, 12/27/2011

Tokyo - Sony said Monday that it has begun streamlining its television manufacturing operations and has sold its nearly 50 percent stake in a joint-venture LCD panel factory to co-owner Samsung.

The move affirmed reports out of Japan several months ago that Sony was looking to scale back its television making operations due to increasingly difficult market conditions, including the strong value of the yen against the dollar and South Korean won, and the sustained economic meltdown which has hindered consumer demand for more profitable products.

Revealingly, Sony waited for one of the slowest news days of the year in the Western world - the day after Christmas - to make its less-than-positive pronouncement.

Sony, which ranks in the top three selling TV brands in the U.S. with its Bravia sub-branded LCD TVs, said in a statement that it would sell its stake in the jointly owned manufacturer, S-LCD company, to Samsung of South Korea for $939 million.

The joint venture was established in Tanjeong, South Korea, in April 2004.

However, Sony said it would maintain its LCD TV marketing business in part by outsourcing. It also retains a 7 percent stake in an LCD joint venture panel factory with Sharp.

Last month, Sony warned that it would lose money for the fourth year in a row in its current financial year, which ends next March.

Sony said it expects to show a loss of 66 billion yen, or $856 million, for the last three months of 2011 because of its exit from the Samsung joint venture.

The move, however, should reduce costs in its LCD business by 50 billion yen a year, the company said.

Sony said it would continue to purchase LCD panels from Samsung based on market prices.

Samsung officials said in a regulatory filing Monday that it had approved the plan.