Pioneer Earnings Still Pinched By Earthquake

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Pioneer Corporation reported a slight drop in sales for is recent quarter but a sharp dive in net income, citing a decline in car audio sales, mainly on the OEM side, and mainly due to residual effects from the earthquake last March.

Also impacting results were the rising yen to the dollar and lower optical disc drive product sales, also due to the earthquake.

PioneerNet income for its fiscal Q2 fell by 80 percent to 1,212 million yen ($16,000), down from 7,654 million yen ($99,000) for the same period last year.

Net sales fell 1.1 percent to 115,602 million yen ($1.5 million).

In car electronics, specifically, sales increased almost 11 percent to 70,805 million yen ($911,000). Aftermarket sales of in-car navigation performed well in Japan as did OEM sales from dealer options in Japan. But overall car audio products declined due to lower sales in Central and South America that were caused by a delay in shipping as a result of the earthquake, said Pioneer Wednesday.

For the quarter ended September 30, OEM car audio sales fell in North America and China from lower OEM orders due to the earthquake, said Pioneer.

OEM sales accounted for 42 percent of Pioneer’s total car electronics sales, compared with 45 percent for the year ago quarter.

Source: Pioneer Corporation via JCN Newswire

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