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Pioneer Posts Q1 Net Loss But Forecasts Full-Year Profit

Kawasaki, Japan – Pioneer Electronics posted a single-digit percentage gain in sales and dramatically reduced its net loss in its fiscal 2015 first quarter ending June 30, the company announced.

The company posted sales gains in home electronics and in car electronics (OEM and aftermarket combined), but only the car audio segment posted an operating profit. The home electronics segment, which is in the process of being sold off, posted an operating loss, though the loss was fell 60 percent to 1.4 billion yen ($13.6 million). The segment earned no operating profit in fiscal 2014 and posted a 2.8 billion yen operating loss in fiscal 2013.

Consolidated net sales in the quarter grew 3.7 percent to 113.3 billion yen ($1.1 billion), and the first-quarter net loss fell to 2.1 billion yen ($20.4 million) from a year-ago 10.1 billion yen loss.

The company posted operating profits of 265 million yen ($2.5 million) compared to a year-ago loss of 7.57 billion yen.

The company continues to forecast a full-year fiscal 2015 sales gain of 3.4 percent to 515 billion yen ($5 billion), an 11.9 percent gain in operating income to 12.5 billion yen ($121.7 million), and net income of 2 billion yen ($19.5 million), up 277 percent from fiscal 2014’s 531 million net income. Fiscal 2015 ends in March 2015.

The car electronics segment reported operating income of 2 billion yen compared with a year-ago operating loss of 3.1 billion yen, thanks to lower SG&A expenses, an improved cost-of-sales ratio, and higher sales.

Home electronics sales rose 1 percent to 21.3 billion yen. “Although sales of home A/V products declined, sales of optical disc-drive-related products, DJ equipment, and equipment for cable-TV systems grew,” the company said. “Segment sales also benefited from the positive effect of the Japanese yen’s depreciation.”

The home electronics segment’s operating loss shrank to 1.4 billion yen compared to a year-ago operating loss of 3.5 billion yen.

In June, Pioneer Corp. has reached a basic agreement to sell off the majority of its home electronics business to a Hong Kong private-equity firm and to Onkyo, the company announced.

North American sales of all products rose 2.4 percent to 23.5 billion yen from the year-ago quarter.

 Worldwide OEM and aftermarket car electronics sales rose 4.2 percent to 82.4 billion yen, with OEM and aftermarket navigation sales and car audio sales both rising. Aftermarket car audio sales grew primarily in North, Central and South America. OEM accounted for 56 percent of combined car electronics sales.