Aiwa To Become Sony Subsidiary
03-04-02, 09:15 AM
#1
Premium Member
Thread Starter
Join Date: Sep 1999
Location: So. Cal
Posts: 20,623
Likes: 0
Received 0 Likes
on
0 Posts
Aiwa To Become Sony Subsidiary
Tokyo - Sony announced today that its long-time affiliate Aiwa will become a wholly-owned subsidiary of the company, after reducing consolidated fixed costs to one-third of its present level and a stock exchange between the two companies, by Oct. 1.
Aiwa, which has reported losses for the last three years, reported a 27.3 percent sales decline during its fiscal third quarter, hitting $505.8 million, down from the $695.7 million in the third quarter. The net loss for the quarter was $28.8 million, compared with $49.7 million during the same quarter in the previous year. Aiwa has previously announced that the company's projected loss for the fiscal year, ending March 31, will exceed initial projections due to stagnant sales and added expenses.
In a prepared statement Sony said the decision was made as part of a 'structural reform of its entire electronics business' and will now 'position Aiwa as a wholly-owned subsidiary within the [Electronics] Group.' Sony has more than a 60 percent stake in Aiwa. The statement added that Aiwa becoming a subsidiary 'will generate significant operational benefits' and the 'synergy' of using the Sony and Aiwa brands 'will result in overall corporate value for the Group as a whole.'
http://www.tvinsite.com/twice/index....y=breakingNews
Aiwa, which has reported losses for the last three years, reported a 27.3 percent sales decline during its fiscal third quarter, hitting $505.8 million, down from the $695.7 million in the third quarter. The net loss for the quarter was $28.8 million, compared with $49.7 million during the same quarter in the previous year. Aiwa has previously announced that the company's projected loss for the fiscal year, ending March 31, will exceed initial projections due to stagnant sales and added expenses.
In a prepared statement Sony said the decision was made as part of a 'structural reform of its entire electronics business' and will now 'position Aiwa as a wholly-owned subsidiary within the [Electronics] Group.' Sony has more than a 60 percent stake in Aiwa. The statement added that Aiwa becoming a subsidiary 'will generate significant operational benefits' and the 'synergy' of using the Sony and Aiwa brands 'will result in overall corporate value for the Group as a whole.'
http://www.tvinsite.com/twice/index....y=breakingNews
03-04-02, 10:18 AM
#2
DVD Talk Gold Edition
Join Date: Jan 2002
Location: Portland, Oregon
Posts: 2,847
Likes: 0
Received 0 Likes
on
0 Posts
I was always under the impression that sony made all of Aiwas products anyway. Does this mean that Aiwa stuff is gonna have sony labels on them now or what?
03-04-02, 11:23 AM
#3
DVD Talk Gold Edition
Join Date: Nov 1999
Location: Stuck doing T.P.S. reports for Lumbergh!!!!
Posts: 2,485
Likes: 0
Received 0 Likes
on
0 Posts
Originally posted by Ergyu
I was always under the impression that sony made all of Aiwas products anyway. Does this mean that Aiwa stuff is gonna have sony labels on them now or what?
I was always under the impression that sony made all of Aiwas products anyway. Does this mean that Aiwa stuff is gonna have sony labels on them now or what?
