JVC's CE Sales Decline 13.3% In First Quarter
By Jeff Malester -- TWICE, 8/4/2003
Tokyo — An accelerating switch-over to digital products resulted in "struggles" for CRT television sets, video decks and VHS-C video cameras, according to Victor Company of Japan (JVC), which reported a 13.3 percent decrease in overall consumer electronics division sales in the company's fiscal first quarter.
CE product category sales hit $1.2 billion, down from $1.4 billion in the year-ago period, but JVC said it enjoyed increased sales in DVD players, projection televisions and digital video cameras.
In JVC's software and media products division — which includes music and video CDs, videodiscs, prerecorded music and video tapes and blank media — first quarter sales climbed 2 percent, reaching $301.5 million for the three months ended June 30, compared with $295.3 million year-on-year.
With JVC reporting a year-on-year decline in local currency-denominated sales in the Americas, total overseas first quarter revenue dropped 7.6 percent, down to $1.3 billion, from $1.4 billion in the same three months in 2002.
War in Iraq, as well as other factors, caused U.S. consumer spending to slump, said JVC, with this down trend contributing to a 7 percent drop in first quarter consolidated sales. This hit $1.8 billion, compared with $2 billion in the same period the previous year.
JVC did report consolidated improvement in profitability during the first three months, with operating income increasing 51 percent, to $20.9 million, up from $13.8 million in the same quarter a year ago. The company also moved into the black in the quarter, but barely, recording net income of $619,869, compared with a net loss of $15.1 million in the first quarter of 2002.
Looking ahead to mid-year, JVC anticipates 6-month sales of $4.1 billion, down 1 percent year over year. It expects net income of $25.1 million, up $13.4 million from the same six months last year.
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