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Pioneer Reports Lower Q1 Sales, Operating

7/31/2007 10:26:00 AM Eastern

Tokyo — Pioneer Electronics reported lower sales and a double-digit drop in operating income due to lower profitability in home electronics and weaker exchange rates during its fiscal first quarter, which ended June 30.

Consolidated operating revenue was $1.48 billion, down 4.7 percent from the previous year’s first quarter, with drops in plasma displays being blamed along with a weaker yen vs. the U.S. dollar and the Euro. Operating revenue was down 81.3 percent to $10.8 million from the previous year due to lower profitability and sales in home electronics.

Net income was $100.3 million, about 2.2 times the same quarter last year, but that was due to the sale of land and buildings at its Tokorozawa and Omori plants for $96.8 million.

Home electronics sales were down 14.3 percent to $564.5 million due to the drop in plasma TV sales due to “fierce competition” in North America and Europe. Plasma sales accounted for about 34 percent of home electronics sales. Operating loss was $42.2 million, about 12 times greater a loss this year than the same time last year, again mainly due to profits lost in plasma displays.

In car electronics, sales were up 6.2 percent to $788.8 million due to higher sales of both car navigation systems and car audio products. In North America car navigation systems, consumer-market and OEM sales increased, but OEM and consumer market sales decreased in car audio. Operating income rose 1 percent to $61.9 million due to sales growth.