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Panasonic, Sony Post Losses; Pioneer Profits

5/21/2012 12:01:00 AM Eastern

NEW YORK – Panasonic, Sony and Pioneer Electronics
all reported their fiscal year financials in the past
two weeks, with Pioneer the only Japanese vendor of
the three to post a profit.

All three companies cited foreign exchange rates,
the Great East Japan Earthquake and Tsunami in
March 2011, flooding in Thailand, generally weak economic
conditions in major markets, and heavy price
competition as the cause for either lower sales, losses
or both.

Panasonic reported a net loss of 772.2 billion yen
from a profit and a 10 percent drop in sales for its fiscal
year, ended March 31.

The net loss of 772.2 billion yen compares with a
profit of 74 billion yen in fiscal 2011. Consolidated
group sales for fiscal 2012 decreased by 10 percent
to 7,846.2 billion yen, from 8,692.7 billion yen in the
prior fiscal year.

Overseas sales decreased by 12 percent to 3,684.2
billion yen, from 4,178.4 billion yen in fiscal 2011.

In Panasonic’s AVC networks unit, sales decreased
by 21 percent to 1,713.5 billion yen, from 2,156.8 billion
yen a year ago. Despite favorable sales of PCs,
this result was due mainly to sales declines in flat-panel
TVs and digital cameras. Operating loss was 67.8
billion yen, compared with a profit of

27.3 billion yen a year ago, due mainly to a sales
decrease and a price decline.

Pioneer reported lower sales but a net profit for
its fiscal year, although it was markedly lower than the
prior year.

Consolidated net sales declined 4.5 percent year on
year, to 436,753 million yen. Net income declined 64.5
percent to 3,670 million yen.

Car electronics sales grew 6.6 percent year on year,
to 270,785 million yen. In car audio products, on the
other hand, consumer-market sales rose in Europe
but recorded overall decline, mainly from lower sales
in North America and in Central and South America.
OEM sales accounted for 43 percent of car electronics
sales, the same percentage as in the previous fiscal
year.

Operating income in this segment declined 26.7
percent, to 10,292 million yen.

Home electronics sales declined 21.9 percent year
on year, to 123,057 million yen. Despite solid sales of
A/V systems and A/V receivers primarily in Europe,
a large decline in sales of optical-disc-drive-related
products due to the absence of the special demand
associated with the shift to digital terrestrial broadcasting
in Japan in July 2011 and a decline in disc
drives for PCs led to a large overall decline.

Operating income in this segment rose 40 percent
to 3,560 million yen, on lower expenses and an improvement
in the gross profit margin, despite the decline
in sales.

Sony posted a $5.7 billion net loss for its fiscal year,
ended March 31.

The loss was on sales of $79.2 billion, a 9.6 percent
drop compared with the prior fiscal year in yen, the
company said. Sony’s also reported a loss of $3.2 billion
on sales of $15.7 billion for its fiscal fourth quarter,
ended March 31.

Sony posted an 18.5 percent drop in revenue on
consumer products and services for the year to $38.2
billion. The decrease was due to flagging sales in LCD
TVs, PC, imaging products and gaming consoles.
LCD TV sales were particularly poor in Japan, Europe
and North America, the company said, while PC and
digital imaging sales declines were blamed specifically
on the Thai flooding and monetary exchange rates.
The fall-off in game consoles was attributed to Play-
Station3 sales and a drop-off in PS2 sales.