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JVC CE Sales Down 13.3%

7/29/2003 02:23:00 PM Eastern

Tokyo - Victor Company of Japan (JVC) reported a 13.3 percent decrease in overall consumer electronics division sales in the company’s fiscal first quarter due to what it called 'struggles' in the CRT TV, VCR and VHS-C camcorder categories.

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. The company said the division enjoyed major hits and strong growth.

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.

For the 12 months, JVC is looking for $8.4 billion in sales, an increase of 3 percent, compared with the previous fiscal year. It anticipates 12-month net income of $92.1 million, up $39.4 million year over year.