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JVC CE Division Sales Increase 11%

10/29/2002 11:26:00 AM Eastern

Tokyo - Pumped up by strong overseas sales of DVD players, car audio equipment, televisions and digital video cameras, the consumer electronics division at Victor Company of Japan (JVC) reported an 11.3 percent overall sales increase for the first fiscal half.

Revenue climbed to $2.8 billion, up from $2.5 billion in the year-ago period.

JVC's software and media products division registered generally difficult conditions during the first half, ended Sept. 30, with results down year-on-year throughout the music content, video content and game software industries. However, the division, which includes prerecorded and blank media, posted a 3.1 percent increase in sales for the first six months, reaching $721.2 million, up from $699.6 million in the first half of 2001.

JVC reported that markets in the Americas and Europe were stable during the first quarter, but slumped in the second, due to expectations of economic stagnation and other causes.

Consolidated international sales posted a strong 9.8 percent year-on-year gain during the first half, thanks to solid markets in the Americans, Europe and Asia, said JVC.

The overall result was consolidated sales of $4 billion for the first half, a 7.6 percent gain over the $3.7 billion recorded in the first half of last year.

Operating income moved into the black for the six months, to $72.4 million, compared with an operating loss of $124.4 million in the year-ago six months.

Net income also moved to the positive side of the ledger, registering $11.3 million for the first half, compared with a net loss of $165.4 million in the first six months of 2001. This was in spite of charges take for extraordinary retirement benefits and business structural improvements, said JVC.

The company anticipates continued severity in the business environment for the foreseeable future, due to uncertainties in the Americas, among others.

In revising its business forecast for the fiscal year ending Mar. 31, 2003, compared with numbers offered at the end of last April, JVC now expects total sales to hit $7.99 billion, up from $7.97 billion, and a 3 percent year-over-year gain.

Operating income should climb to $162.2 million for the 12 months, compared with $137.9 million in the previous estimate.

Net income is anticipated to rise to $48.7 million for the 12 months, compared with $35.7 million in last spring's estimate, and an increase of $410.7 million year-on-year.