twice connect
careers

Q2 Audio Sales Rebound, But 1st Half Flat

9/02/2002 02:00:00 AM Eastern

Factory-level audio sales rebounded in the second quarter by 9.4 percent to $2.04 billion, but the first quarter's 9.1-percent decline kept first-half sales almost flat at $3.63 billion, up only 0.1 percent, CEA statistics show.

June's industry sales rose 7.8 percent to $726 million to almost match the $728 million record set for the month in 2000. Likewise, second-quarter sales rose 9.4 percent to $2.04 billion to almost match the $2.07 billion record set in 2000.

In June and the second quarter, the industry's four core segments posted gains, with components, home systems and portables reversing their first-quarter losses. Autosound growth accelerated in the second quarter to exceed the first-quarter growth rate.

Despite the second-quarter turnaround, first-half sales fell by 1.2 percent in the home component segment to $623 million and by 10.1 percent in portables to $914 million. First-half home-system sales grew only a modest 1.7 percent to $875 million. Autosound sales, on the other hand, grew in both quarters, boosting first-half sales by 9.1 percent to $1.22 billion.

Here are the details on each category's sales for the month, quarter and half:

Home components: In June, sales rose at a double-digit rate for the second consecutive month following four months of declines. June's 10.1 percent gain to $131 million, following May's 10.8 percent gain, contributed to 7.2 percent growth in second-quarter sales to $327 million, their highest level since a 1998 peak. Second-quarter sales have risen only four times since 1995, CEA statistics show.

For the half, sales declined for the sixth consecutive year, but the 1.2 percent drop to $623 million wasn't nearly as bad as last year's second-quarter decline of 13.3 percent.

Home systems: The category revived its image as home audio's growth engine, with sales jumping to record highs in June, the second quarter, and first half. June's sales rose 7.9 percent to $184 million, and second-quarter volume grew 15.7 percent to $520 million. Although the first-quarter's 13.6 percent decline limited first-half growth to 1.7 percent, first-half volume hit a record $875 million.

The category includes shelf and rack systems and home-theater-in-a-box electronics/speaker packages.

Total home audio: Combined sales of components and systems rose 8.8 percent in June to a record $315 million. Second-quarter sales surged 12.2 percent to $847 million but nonetheless fell short of the $856 million second-quarter peak reached in 2000. Because of first-quarter declines, first-half sales were up only 0.4 percent to $1.5 billion, falling short of the $1.6 billion first-half peak reached in 2000.

Portables: Sales (including home radios) gained for the second consecutive month at a single-digit rate following four consecutive months of double-digit declines. June sales grew 7.3 percent to $208 million, but despite the healthy gain, sales were still below the $213 million peak set 13 years ago in June 1989.

For the second quarter, sales grew 2 percent to $558 million, but the first quarter's 23.3 percent plunge pushed first-half sales down by 9.7 percent to $918 million. The category's first-half sales have fallen during six of the past eight years.

Autosound: Despite OEM competition, aftermarket sales drove into the hammer lane, breaking records for the month, quarter and half. June sale's rose 6.7 percent to $203 million. Second-quarter sales rose 13 percent to $637 million, exceeding the first quarter's 5.1 percent gain. First-half sales rose 9.1 percent to $1.22 billion.

PHOTOS
Ultra HD OLED TVs In IFA Spotlight

At IFA, all Ultra HD makers are quickly expanding

Jack Wayman, the Father Of International CES

Tributes continue to pour in for Jack Wayman, who

Nationwide PrimeTime 2014

Scenes from Nationwide PrimeTime buy fair held in

ProSource Meeting Filled With Optimism

San Antonio — Optimism reigned at ProSource’s

Ingram Draws 500 To Spring Vendor Expo

Scottsdale, Ariz. — Ingram Micro Consumer