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Pioneer Posts Lower Sales In Fiscal Q3

2/09/2010 10:04:47 AM Eastern

Tokyo - Pioneer reported lower net sales in
its fiscal third quarter ended Dec. 31, 2009, and posted an operating profit
and an improved net loss for the period.

Consolidated net
sales decreased 9.3 percent from the quarter of fiscal 2009 to $1.29 billion. This
was mainly the result of lower sales in the plasma display business, from which
Pioneer will withdraw.

Pioneer recorded
operating income of 1.003 billion yen or $10.9 million, compared with an
operating loss of 11.35 billion in the third quarter of fiscal 2009.

This change
primarily reflected improvement in the gross profit margin and lower selling, general
and administrative (SG&A) expenses, mainly owing to benefits from
restructuring, despite the drop in net sales, Pioneer said.

The net loss
improved to 3.873 billion yen ($42.1 million), compared with 29.9 billion yen
in the third quarter of fiscal 2009. In addition to improved operating
profitability, the smaller net loss reflected the absence of a loss on valuation
of investment securities recorded in the third quarter of fiscal 2009, the
company said.

Car electronics
sales decreased 2.4 percent year on year to $703.8 million because of lower
sales of car navigation systems, despite higher car audio product sales. In car
navigation systems, consumer-market sales declined year on year, mainly due to
lower sales in Japan.
OEM sales decreased because of lower sales in Japan
and North America. In car audio products,
consumer-market sales in North America were
lower.

Total OEM sales in
this segment accounted for approximately 47 percent of car electronics sales,
mostly the same as the

corresponding
period of the previous fiscal year.

This segment
recorded operating income of 2.176 billion yen or $23.7 million, compared with
an operating loss of 1.2 billion yen in the third quarter of fiscal 2009.

This was mainly
due to a drop in fixed cost, mainly owing to benefits from restructuring,
despite a decline in production volume.

Home electronics sales
decreased 24.4 percent year on year to $422.3 million, due to lower sales of
plasma displays and DVD drives, despite higher sales of Blu-ray Disc-related
products as an optical-disc joint venture commenced operations.

This segment
recorded an operating loss of 2.318 billion yen or $25.2 million, compared with
9.752 billion yen in the third quarter of fiscal 2009. The smaller operating

loss reflected a
decline in fixed cost, mainly owing to benefits from restructuring, the company
said.

In the company's "others"
segment, sales increased 14.7 percent year on year to $167.9 million, due to
increased royalty revenue from patents related to optical disc technologies, as
well as higher sales of electronics devices and parts, and business-use A/V
systems. This was despite lower sales of factory automation systems, Pioneer
said.

Operating income
in this segment was 1.368 billion or $14.9 million, compared with an operating
loss of 624 million in the third quarter of fiscal 2009. This change was mainly
due to increased royalty revenue from patents related to optical disc technologies,
Pioneer said.