LG Electronics, Inc. released preliminary financial results for their first quarter of the 2016 fiscal year earlier this month. The report was very brief, showing only top line revenues and operating profits. But as short as it is…it comes with a bit of a surprise.
Financial
Hitachi Spending Nearly $1B to Launch IoT Research Center in U.S.
Hitachi announced this week that it will invest ¥100 billion ($915 million) building a state-of-the-art research center in the United States to develop Internet of Things (IoT) products and technologies. A significant commitment by the company, with the project expected to take over three years to complete – the facility will be located in Santa Clara, California.
See more on this major R&D center in the U.S. by Hitachi… [Read more…] about Hitachi Spending Nearly $1B to Launch IoT Research Center in U.S.
On Saturday, Sharp Becomes Taiwanese
Savvy Negotiating by Gou Lands Him Sharp At a Discount
Hon Hai Presicion
Foxconn
The Boards of both Hon Hai Precision Industry Co. (better known as Foxconn) and Sharp Corp. have approved the acquisition of 66% of the outstanding shares of Sharp by the Taiwanese OEM manufacturer of largely Apple, Inc. products. This day came largely as a result of some savvy negotiations and tactics from Foxconn’s CEO Terry Gou, who overcame tremendous odds to score this win.
Gou not only won Sharp, but he won it at a discount…see more… [Read more…] about On Saturday, Sharp Becomes Taiwanese
Gibson Brands Puts Assets Up For Sale
Just two weeks after we told you about Moody’s Investors Service downgrading Gibson Brands credit to junk status, the company has put two of their properties up for sale in an apparent effort to raise some much-needed cash. According to local reports, both properties contain warehouses and are located in redevelopment areas in downtown Nashville.
See more on this new Gibson development… [Read more…] about Gibson Brands Puts Assets Up For Sale
After Year-Long Search, B&O Finds a Buyer…But Only One
Investors Who Bid Up Stock on News of a Buyer, May Be Sorry
Bang & Olufsen A/S, the well-known Danish premium technology brand that balances high performance with high design, has spent a year searching for a prospective buyer. The good news is that they were successful. The bad news is that they were only a little successful…they found exactly one potentially interested party. And as any businessperson can tell you, that there is only one bidder doesn’t bode well for sparking a bidding war to drive up the deal to ever more profitable levels.
See the problematic situation B&O has gotten themselves into… [Read more…] about After Year-Long Search, B&O Finds a Buyer…But Only One
Streaming Revenues Overtake Music Downloads for the First Time Ever
Overall Recording Industry Sales Grow for First Time Since 2011
The Recording Industry Association of America (RIAA) reported overall industry sales data for 2015 this week, revealing that for the first time in history streaming music was the single largest component of industry sales. Revenues from streaming sources accounted for 34.3% of total revenues, beating out music downloads from services like iTunes and others which accounted for 34% of total revenues.
Overall sales increased 0.9% to $7 billion, the first overall industry growth since 2011.
See more on the growth of streaming in music industry sales… [Read more…] about Streaming Revenues Overtake Music Downloads for the First Time Ever
LCD Panel Prices in a Free Fall – Down 40% This Year
Liquid crystal display panel prices are dropping dramatically, hitting new low levels never before seen, as ramped-up production by Chinese manufacturers collides with depressed consumer demand for televisions and personal computers.The situation does not seem to be righting itself, even considering the fact that an earthquake recently damaged LCD panel production in Taiwan.
See more on the impact of a glut of LCD panels… [Read more…] about LCD Panel Prices in a Free Fall – Down 40% This Year
Moody’s Downgrades Gibson Brands Credit to Junk
Gibson Brands CEO Responds to Moody’s Downgrade
The music industry is positively buzzing about the announcement late last week by Moody’s Investors Service that, for the second time in three months, it has downgraded the credit rating of Nashville, Tennessee-based Gibson Brands. Gibson (formerly Gibson Guitars) is a tightly held private company that launched an aggressive diversification strategy a few years ago, focusing on acquiring several consumer electronics brands such as Onkyo Corp. and Teac, Corp. and recently Philips.
Now Moody’s suggests the debt used to acquire these brands is dragging the company down… [Read more…] about Moody’s Downgrades Gibson Brands Credit to Junk
After Big Setback, Sharp-Foxconn Deal Expected Soon
Newly Discovered Liabilities Nearly Derail Deal
In what most Japanese media are calling a due diligence blunder, a potential deal for Hon Hai Precision Industry, better known as Foxconn, to buy Sharp Corp. was nearly scuttled when over $3 billion in potential additional liabilities suddenly came to light. The development caused Foxconn to pull back and, ultimately, launch an even deeper and more detailed analysis of the opportunity.
With talks back on track, a deal is now expected by March 31st… [Read more…] about After Big Setback, Sharp-Foxconn Deal Expected Soon
Nortek Fiscal 2015 Q4 & Full Year Results are Mixed; AVC is Still Sliding
Nortek, Inc., a diversified manufacturer that through its Core Brands division markets several brands in the custom integration channel, released this week its fiscal 2015 fourth quarter and full year results. Overall, the results were mixed, as the company continues to struggle through a huge consolidation and experience shifts in its sales mix.
But one thing that remains clear is that their AVC segment, the segment that contains the Core Brands businesses, is continuing to struggle with a dramatic sales decline (27.1% decline in the quarter – 20.5% sales decline for the year) and increased losses ($20.8 million loss for the year as compared to a $19.2 million loss for 2014, ).
