Tokyo - JVC Kenwood reported a net profit in its fiscal third quarter, ended Dec. 31, 2010, but net sales fell 11.3 percent compared with the same time in the prior year.
Net sales were 90.6 billion yen, lower than the prior year's 102.1 billion yen, but net income was 5.386 billion yen, compared with an equivalent loss of 5.43 billion in the prior year's fiscal third quarter.
In the current third quarter, following on from the second consolidated first half, sales of the car electronics business were favorable in both consumer and OEM segments, and in the professional systems business segment, orders received recovered centering on land mobile radio segment, the company said.
In its electronics business, there was reduction in the display segment in the U.S. and European markets and lower sales mainly overseas in the camcorder segment, and these factors also caused business to decline.
The company said its quarterly net income for the current third quarter increased by about 10.8 billion yen, on a year-to-year basis, to 5,386 million yen. This was due to the substantial improvement in ordinary income, the extraordinary income and a loss described above, and reduced adjustment for corporate tax, etc. in connection with sale of assets. The company marked the first profit in quarterly net income after the management consolidation, despite previously projecting a loss.
During the current third quarter, JVC Kenwood continued to sell assets, including a plant in Mexico whose production had been terminated and an office and storage on the west coast of the U.S. owned by the U.S. sales corporation of JVC. These sales were in accordance with the action plan for reconstructing corporate bases, the company said.