Yamaha Corporation announced their financial results for fiscal year 2014 (April 1, 2013 – March 31, 2014) and it is mostly good news for the company and its shareholders. However, like other Japanese companies, Yamaha benefited from an extremely favorable currency exchange rate that for some of their divisions was the only good news. Overall, however, Yamaha has much to crow about with sales up 11.8% to ¥410.3 billion ($4.0 billion) and net income up 455% to ¥22.9 billion ($223.8 million).
Asian Connection
Aggressive Business Restructure Fails to Prevent JVC Kenwood’s Net Loss
JVC Kenwood Corporation released a snapshot of the financial results for its fiscal year that ended March 31, 2014 and – while overall group revenues were slightly better than expected – the profit picture is still quite troubled. Fiscal year total revenues came in at ¥316.343 billion ($3.1 billion)…but the company booked a net loss of ¥6.571 billion ($64.3 million).
See more of the company’s results which suggest benefits from their reorganization are still ahead… [Read more…] about Aggressive Business Restructure Fails to Prevent JVC Kenwood’s Net Loss
Sony’s Struggling Electronics Division is Hoping for a Spider-Man Rescue
Like a damsel in distress, Sony’s money-losing electronics businesses are hoping that Spider-Man can save them…and it just might take a superhero to do it. With Sony Pictures’ The Amazing Spider-Man 2 about to launch in Japan this month – and in the U.S. next month – the company’s hardware businesses have teamed up with their entertainment businesses to launch an aggressive cross-promotion.
Can Spider-Man save Sony electronics?… [Read more…] about Sony’s Struggling Electronics Division is Hoping for a Spider-Man Rescue
Talk About Income Inequality! Just Four Companies Generated 90% of All Net Profits in South Korea
In a report that is sure to surprise many and even stun some, the Korea Fair Trade Commission, South Korea’s fair trade watchdog, announced that just four large companies – or conglomerates – generate 90% of all of the total net profit earned in the country in 2013. The commission, which closely tracks the performance of what they call the largest conglomerate companies, issues their report every April with this year’s report showing the share of the top four have continued to grow since 2011.
But wait until you see the percentage of profits from just the top TWO companies… [Read more…] about Talk About Income Inequality! Just Four Companies Generated 90% of All Net Profits in South Korea
What Happened When the Largest LCD Display Company in Japan Went Public? ‘A Disaster’
Japan Display, Inc., the largest manufacturer of LCD displays for smartphones and tablets in Japan, launched their initial public offering (IPO) on Wednesday this week amid great anticipation. It was a big listing – with a total value of $3.2 billion, it was the biggest IPO since Suntory’s food-and-beverage unit raised $3.9 billion in 2013.
So how did Day 1 of their stock offering go? ‘A disaster, no doubt…” [Read more…] about What Happened When the Largest LCD Display Company in Japan Went Public? ‘A Disaster’
JVC Kenwood’s Early Retirement Solicitation Falls Short of Goal
JVC Kenwood Corporation announced the final results of their voluntary early retirement solicitation first announced late last year. This solicitation was offered as part of a comprehensive effort to turn around the company’s flagging fortunes and included many steps to cut overhead and improve profitability – such as this effort to cut employment by incentivizing employees to leave the company.
Did their program succeed? See the results below… [Read more…] about JVC Kenwood’s Early Retirement Solicitation Falls Short of Goal
Japanese Electronics Manufacturers Ready to Agree to Raise Worker Pay
Six major Japanese electronics manufacturers are prepared to agree to raise employee pay when they meet with union representatives at the upcoming spring labor-management wage talks, according to a report in the Japan Times. Yet to be worked out is the exact amount of the increase – the first such increase for workers since 2008.
See why manufacturers are open to an increase now & how much the increase is likely to be… [Read more…] about Japanese Electronics Manufacturers Ready to Agree to Raise Worker Pay
Bain Capital Seeks to Restructure D&M Holdings Buyout Financing – It Could be Tough
Reuters reported this week that Bain Capital, the private equity company that virtually became a household name when CEO Mitt Romney ran for president against Barack Obama, is seeking to refinance the buyout financing it used to acquire D&M Holdings, Inc., also known as the D+M Group. It’s not going to be easy.
See what Bain Capital is up against in their goal of restructuring their D&M buyout debt… [Read more…] about Bain Capital Seeks to Restructure D&M Holdings Buyout Financing – It Could be Tough
Sony Cuts Get Deeper – A Third of U.S. Staff to be Cut; 20 Sony Stores Will Close
Although not a surprise, Sony Electronics in San Diego began releasing details of a substantial cutback in U.S. facilities and personnel. The company says it will cut 33% of its U.S. staff – about 1,000 employees. Also, the company announced a major retreat from retail as it will close 20 of its 31 total Sony Store locations.
See more on this significant Sony restructuring… [Read more…] about Sony Cuts Get Deeper – A Third of U.S. Staff to be Cut; 20 Sony Stores Will Close
Best Buy Licenses Sharp Brand Name for Smaller, Cheaper TVs Sourced from OEM Suppliers
In a report out of Japan last week, the Nikkei says that Sharp Corp. has reached a deal with Best Buy that will allow the retailer to license the Sharp brand name to be used on TVs made by OEM manufacturers for smaller and less expensive TVs. Sharp will continue to retain the brand for larger-sized sets (i.e. >50-inches), while Best Buy will have their OEM suppliers make Sharp-branded sets in smaller sizes.
Then move could be risky, potentially causing a conflict between the lower quality smaller sets and the higher quality larger sets…each bearing the Sharp brand.
