TCL's French Meal Leads To Indigestion
As Chinese companies like Lenovo, Haier, and CNOOC (CEO ) look to expand through overseas acquisitions, the company behind one of the earliest high-profile Chinese deals is struggling. Television maker TCL Multimedia, which last year began licensing the RCA brand as part of its acquisition of French company Thomson's TV business, reported on Aug. 31 a second-quarter loss of $6 million on sales of $987 million. TCL has had difficulty integrating the Thomson (TMS ) business and was hit by falling margins for flat-screen TVs in the U.S. and a fierce price war in its home Chinese market. TCL management is predicting a turnaround by mid-2006.
Edited by Cristina Lindblad