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Pioneer’s Annual CE Sales Rise 7%

4/27/2005 01:14:00 PM Eastern

Tokyo — Sales of plasma displays and DVD recorders pushed up fiscal-year revenue at Pioneer 7 percent in the company’s home electronics segment. Sales reached $2.84 billion for the 12 months, compared with $2.66 billion in the year-ago period.

Overseas sales in Pioneer’s home electronics segment, primarily consumer electronics, climbed 5.2 percent, to $2.01 billion in the 12 months, up from $1.91 billion year-on-year. The company also cited increased sales of plasma displays and DVD recorders, along with a decrease in sales of audio products and DVD players worldwide, as well as the withdrawal from its cable TV set-top box business in North America.

Severe demand, despite continuing downward pricing pressure moved operating revenue at Pioneer’s home electronics segment into the red during the fiscal year, with the business notching a $208.8 million loss, compared with operating income of $30.6 million in the previous year.

Pioneer’s car electronics segment, the company’s largest, came in with an annual sales increase of 3.8 percent, reaching $2.86 billion, up from a year-on-year $2.76 billion.

Overseas sales for car electronics increased 7.4 percent for the 12 months, to $1.73 billion from $1.61 billion, due to climbing sales of car audio products for the OEM market in North America, despite decreased sales of car audio products for the consumer market.

Pricing pressure is carrying over into the car electronics segment, with 12-month operating income off 62 percent, at $175.5 million, compared with a year-ago $282.8 million.

Pioneer did not break out segment sales or income figures for its fiscal fourth quarter, ended March 31.

Sales to North America were flat in the 12 months, moving up less than 1 percent to $1.67 billion, from $1.66 billion in the same period last year. Pioneer reported an operating loss of $16.2 million in North America for the 12 months, compared with year-over-year operating income of $108.4 million.

Lower prices and harsher competition carried into consolidated annual results for Pioneer, where consolidated revenue rose 4.7 percent, hitting $6.9 billion, up from $6.6 billion in the prior year.

Operating income nosedived 94.5 percent, down to $24.5 million from a year-earlier $$445.2 million. Net loss reached $83 million, compared with net income of $234.4 million in the prior year.

To recover profitability, Pioneer said it is advancing cost reduction efforts, as well as focusing management resources in its strategic businesses. In addition, the company is reducing inventory and adjusting staffing to more appropriate levels throughout the company.

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