Tuesday, October 24, 2006
BenQ said it lost $600 million in the first nine months of the year, and intends to sell off some of its non-core assets in order to recover from a costly and futile effort to turnaround the cell phone business it acquired from Siemens.
BenQ's sales in the first nine months totaled $4.7 billion, excluding sales connected with the BenQ Mobile German subsidiary. When BenQ took over the troubled handset division of Siemens a year ago, it was losing about $1.5 million a day.
Things were so bad that Siemens paid BenQ to take it off their hands. During the last 12 months, BenQ has ponied up about $760 million to keep the former Siemens unit alive.
Last month, it threw in the towel and forced the unit into bankruptcy. This week, roughly two-thirds of the 3,000 workers in Germany were laid off and are fighting a bitter dispute over compensation from BenQ as well as the former parent Siemens.
BenQ said Tuesday that it would sell off some operations to improve its books, and would assess the impact of the unit's failure on other operations.
By: DocMemory
Copyright © 2023 CST, Inc. All Rights Reserved
|
