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JVC Gets Digital Help, But Fiscal 12-Mo. CE Sales Dip 5.5%

4/27/2004 02:03:00 PM Eastern

Yokohama, Japan — Victor Company of Japan (JVC) registered strong growth in digital products, namely DVD recorders, flat-panel televisions and digital cameras, during the 12 months, ended March 31, but these products categories were not able to push the company’s consumer electronics segment into the positive side of the sales ledger.

Declining sales of analog products and 4:3 televisions resulted in a year-on-year CE segment sales slide of 5.5 percent, down to $5.9 billion from $6.2 billion. JVC said segment sales were weak in the Americas, though there was a sign of recovery during the later half the year. Overseas sales were off 2.8 percent for the year.

In the company’s product categories, sales of A/V systems, CRT televisions and VCRs struggled, but DVD players, car audio and projection TV sets recorded strong growth.

JVC’s software and media products segment registered an 11.6 percent sales decline in the 12 months, down to $1.4 billion from $1.5 billion the previous year. The segment includes music and video software, such as CDs, videodiscs, prerecorded music, videotape and blank media.

Consolidated sales for JVC in the 12 months decreased 4.7 percent, hitting $8.5 billion from $8.9 billion year-on-year. Operating income, however, climbed 13 percent for the year to $231.4 million, up from $205.2 million in the same period a year ago. Net income more than doubled to $143.6 million for the 12 months, compared with $58.3 million year-over-year.

Looking ahead, JVC expects continued "severity in the business environment" as competition gears up in the digital products arena and exchange rates move in an unfavorable direction. The company anticipates $8.6 billion in sales for the year ending in March of 2005, up about 1 percent. Net income is expected to decrease 49 percent year-on-year to $73.6 million.