By Lisa Johnston
New products on display at the American International Toy Fair, held in N
Pioneer Electronics, Mitsubishi and Hitachi reported mixed results for their fiscal first quarter that ended June 30.
Pioneer Electronics had 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.
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.
Mitsubishi Electric reported higher sales and net income corporately for its fiscal first quarter, but sales and operating income performance problems in communications and electronic devices.
Company-wide net sales were $7.4 billion during the quarter, up 6 percent vs. the same time last year. Operating income was $555.8 million, up 63 percent vs. the same time last year, and net income was up 87 percent to $392.2 million.
Sales in its electronic devices business were among several groups mentioned as driving sales, while double-digit gains in operating income came from energy and electric systems, among others.
For information and communication systems, sales were $1.01 billion, down 14 percent from the same quarter last year while operating income was zero, down $43 million from the same time last year. Decreases in orders for mobile handsets were blamed for the performance due to decreases in the computer platform business, the company said.
In electronic devices, sales were $400.6 million, up 2 percent from the same quarter last year. Operating income was $20.2 million, a $9.3 million decrease from last year. Semiconductor sales were up, but liquid crystal sales were down from the previous year.
Hitachi said it had a narrower net loss, but higher revenues and operating income on a corporate-wide basis during its fiscal first quarter.
Overall revenues grew in the quarter compared to the same time last year by 10 percent to $20.1 billion, with operating income increasing 43 percent to $200 million. The net loss was $111 million which was approximately one-third lower than the first quarter of last year.
In digital media and consumer products, revenues were down 2 percent to $2.94 billion despite growth in sales of washing machines, room air and commercial-use air conditioners. The lower overall segment revenues reflected soft sales of flat-panel TVs, mainly from North America, the company said.
The unit had an operating loss of $183 million, a little less than one-third more than the previous year's first quarter, due to the impact of soft flat-panel sales.
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