Zenith Electronics Corp, the Glenview, Illinois-based television and set-top box company, has canceled plans to open a color picture tube plant in Woodridge, Illinois. The beleaguered company is focusing on the existing Melrose Park plant in which it has invested over $100m already to build up automation and install new production lines for computer display tubes. Having weighed its investment priorities and evaluated market conditions, Zenith’s president and chief executive, Peter Willmott, says: Tube prices have been declining, making it more attractive to purchase large-screen tubes from others. Zenith has reported a series of dismal financial results, including recent second quarter net losses of $49.3m up from losses last time of $33.2m. Sales declined by 7.2% at $261.8m. Mid-term net losses were $74.5m up from losses last time of $68.5m on revenue which increased by only 0.3% at $520.9m (CI No 3,213). Zenith is pinning its hopes for recovery on the introduction of digital, high-definition television in late 1998.
Content from our partners
