The Japanese journal Asahi reports:
The company announced that it will take drastic measures to eliminate “challenging businesses” with poor growth potential by fiscal 2026, with consideration given to business transfers and withdrawals. While he did not reveal the specific names of “challenging businesses,” he cited home appliances, televisions, and some air conditioning businesses as examples of “challenging” businesses. *Asahi Shimbun Panasonic HD has not achieved its medium-term strategy; President Kusumi says, “Crisis situation”
More specifically:
Any business division that experiences negative growth or has an ROIC that is below WACC+3% will be classified as a “challenging business” and drastic measures will be taken, including improving the ROIC or “transferring the business” or “withdrawing.” *ROIC (return on invested capital)
The good news here is that Panasonic did not cite the camera business. But back in 2022 there were some worrying reports about the camera business. DClife writes:
There have been reports in the past that Panasonic’s camera business will be at a critical juncture in 2022 , so we can only hope that the camera business will not be affected in the future.
In 2022, the overall situation of the camera market was still negative. Now the decade-long decline has stopped and there is a return of interest from the younger generation. Cameras like the Lumix S9 should serve that target well.
–
Lumix S9 at Amazon, BHphoto, Adorama, BestBuy, Panasonic US, FotoErhardt, FotoKoch, Calumet, WexUK, Panasonic UK.