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.
