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Pioneer Posts Q2 Profit, 4.9% Sales Gain

Tokyo – Pioneer Electronics reported a 4.9 percent revenue increase and net income of $30.1 million for its fiscal second quarter ended Sept. 30.

Pioneer said that consolidated operating revenue gain to $1.6 billion for the quarter was mainly due to higher sales of plasma displays and car navigation systems and the weaker yen, despite lower sales of DVD recorders.

Net income was $30.1 million for the quarter vs. a net loss of $446.6 million during last year’s fiscal second quarter. Operating income was $39.1 million compared to an operating loss of $65.5 million the previous year. This reflected higher sales, as well as improved gross margin and lower selling and administrative expenses and a weaker yen, as well as Pioneer’s business restructuring, the company said.

In-home electronics sales were up 6.8 percent to $739.8 million with plasma display sales increasing due to a strong performance of the Pioneer brand in North America and Europe. Plasma display sales accounted for about 46 percent of its home electronics sales. Overseas home electronics sales were up 13.4 percent to $603 million.

The operating loss for home electronics during the quarter was $32.6 million for the quarter compared to $111.4 million for the same period last year. The reduced loss was based on increased gross profit margins in plasma displays, the aforementioned business restructuring and improved manufacturing efficiencies, Pioneer said.

In car electronics, sales were up 7 percent to $708.8 million due to increased sales of car navigation systems, despite slightly lower sales of car audio products. Overseas sales rose 6.1 percent to $466.7 million while operating income increased 92.9 percent to $47.3 million.