Pioneer Widens Losses In Recent Quarter

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Pioneer

Pioneer reported a wider loss for its recent quarter citing higher costs of doing business as well as lower prices for car audio decks. In addition it lost $27 million due to currency changes due to the rising value of the dollar against the yen.

Net loss for its third quarter was $19.3 million (2.3 billion yen), compared with a net loss of $14.7 million a year ago.

In car electronics, sales rose by 7 percent to $775,000 but there was a shift to lower priced models and a decline in sales of car navigation systems. OEM sales rose in North America.

The total spit between OEM and consumer sales in car audio is now 56 percent OEM, compared with 54 percent a year ago.

Total operating income for Pioneer fell by almost 40 percent to $14 million (1.66 billion yen), down from $23 million last year although total net sales rose by 8 percent to $1.14 billion, helped by gains in both car and home electronics.

Pioneer is holding to its forecast for the full year ending in March of $4.3 billion in net sales but its forecast for net income dropped to $155 million for the year.

Source: Pioneer and nasdaq.com

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3 Comments

  1. Unfortunately it seems to work the same way overseas…

    Specialists in Latin America have been moving to other brands for a while now, since the margins with them are so low and everyone with cash can become a reseller.

    Sub-distributors which used to be exclusive now rep several brands, also placing more emphasis on small but exclusive ones, since even though it’s harder to introduce and grow those, they’re getting 10x more profit.

    They made such a big bet on market share and biz volume, they don’t seem to know what to do now that they’ve been losing so many specialists in Latin countries.

    They still have the best brand positioning by far, but good specialists will always sway customers to the profitable alternatives.

    What I don’t understand is why they did start the ‘race to the bottom’ almost a decade ago, when they could’ve lead the D-Din AV segment and make a killing with the profits. They instead dragged the industry to sub $350 units where none makes good money out of them.

  2. Eventually, all they will have is the web to sell their car audio because they will be not margin left. In part because of their own doing…..

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