Pioneer Reports Loss, Higher Sales In Qtr.

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Kanagawa, Japan - Pioneer Electronics reported a loss and a 69.3 percent drop in operating income on higher sales in its fiscal first quarter, ended June 30.

Consolidated net sales rose 13.6 percent year on year, to 111,430 million yen. This was mainly the result of large increases in OEM sales of car navigation systems and car audio products, which more than offset lower sales of optical disc drive-related products and the negative impact of the Japanese yen's appreciation.

Pioneer recorded operating income of 599 million yen, which was 69.3 percent lower than in the first quarter of fiscal 2012. Despite the increase in sales, this decline was the result of a lower gross profit margin and an increase in selling, general and administrative (SG&A) expenses.

A net loss of 2,761 million yen was posted, compared with net income of 293 million yen in the year-earlier period, mainly as a result of the decline in operating income combined with a downturn from a foreign exchange gain to a foreign exchange loss.

By category car electronics

sales rose 41.0 percent year on year, to 81,042 million yen. Car navigation system sales rose on strong OEM sales in Japan and North America in spite of a decline in consumer-market sales, primarily in Japan, in the absence of the year-earlier period's special demand associated with the shift to digital terrestrial broadcasting.

Consumer market car audio sales rose on growth in Japan and North America, which more than offset a decline in Europe reflecting the yen's appreciation. OEM sales of car audio products rose as well, both in Japan and overseas, on a rebound from the year-earlier decline in orders caused by the Great East Japan Earthquake.

OEM sales accounted for 53 percent of total car electronics sales, up from 31 percent a year earlier.

The segment's operating income rose 2.7 times, to 4,972 million yen.

Home electronics

sales declined 29.8 percent year on year, to 21,347 million yen. Sales of A/V receivers grew, mainly in North America and Europe. However, sales of optical disc drive-related products declined substantially in the absence of the special demand associated with the shift to digital terrestrial broadcasting in Japan, as mentioned above.

The segment's operating income fell to a 2,780 million yen loss, from a 362 million yen profit in the corresponding period of the previous fiscal year.

In the "others" segment, despite increased sales of map software, sales declined 11.6 percent year on year, to 9,041 million yen, from lower sales of factory automation systems and electronic devices and parts.

The segment's operating loss grew to 1,156 million yen, from a 516 million yen loss in the corresponding period of the previous fiscal year.

Pioneer has revised its net sales estimate for its fiscal year ending March 31, 2013, at 500,000 million yen, down 4.8 percent, and net income at 8,500 million yen, down 15 percent.

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