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- TCL firms expect to return to profit
Date: 6-Mar-2007 Sources: (Shenzhen Daily)
SHENZHEN-LISTED television and mobile phone producer TCL Corp. said yesterday it is confident the company and its two Hong Kong-listed subsidiaries will post a profit this year.
TCL Corp. has said it returned to the black in the third quarter of last year but still expected to post a loss for the full year of 2006.
TCL Multimedia posted a HK$1.6 billion (US$205 million) net loss in the first half of last year, while TCL Communication Technology Holdings Ltd. reported a net loss of HK$71 million in the same period. The companies have yet to report earnings for the whole of 2006.
'I can tell you responsibly that our three listed companies will all see a profit this year,'group chairman Li Dongsheng said.
Li said TCL Multimedia had no plan to sell its business in Poland, rejecting reports in domestic media that TPV Technology Ltd., the world's biggest computer maker monitor, was in talks to buy a television plant in Poland from the company.
'We will continue our operation in Poland. We have no plan to sell our Poland business,'Li said.
A TPV executive recently said it expected to finalize a US$35 million deal to buy and expand a liquid-crystal-display TV plant in Poland soon. The executive declined to say if the plant was TCL's.
TCL Multimedia, which has struggled to make a profit beyond Asia since buying Thomson SA's TV arm, said last year it planned to wind down a loss-making European operation and Li said the reorganization would be completed by the end of March.
'The reorganization is going very smoothly. It has got support from the French Government and will be completed this month,'he said.
The company said last year it would lay off an undisclosed number of employees in the reorganization, in the latest blow to its efforts to build a global business.
In November, Thomson SA said it had cut its stake in TCL Multimedia to 19.3 percent from 29.3 percent via a private placement.
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