Pioneer, Kenwood Report First Half Results

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Kenwood Pioneer financial results

Pioneer Corporation and JVCKenwood announced results for the first half of the Japanese business year, ending September 30.

Pioneer reported flat consumer sales in navigation but lower consumer car audio sales in the North American market (Pioneer differentiates between navigation and other car audio).

OEM car audio sales also declined in North America, despite higher OEM sales in Japan.  OEM sales now account for 59 percent of Pioneer’s total car electronics sales.

Overall for the first half, Pioneer profits increased, swinging to a gain of $9 million compared to a loss of $18.7 million a year ago.

Sales, however, fell close to 15 percent to $1.8 billion (190,397 million yen) from $2.09 billion a year ago.

Car electronics sales fell almost 13 percent to $734.7 million, mainly due to the negative exchange rate, said Pioneer.

The exchange rate has been a problem for many Japanese companies this year, with the yen gaining against the dollar as much as 19 percent, causing Japanese profits to fall.  As of March overall, Japanese companies saw profit fall 42 percent due to the high value of the yen, said The Wall Street Journal.

JVCKenwood’s automotive audio sales were up for the first half ended September 30, but company-wide sales fell as did overall profits.

Profits fell due to an investment in advanced driver safety.  The development and mass production costs for the project were greater than originally expected.  Also poor foreign exchange rates contributed to lower profits, said JVCKenwood.

The company, however, said driver safety will fuel growth in its automotive business in the future and it will continue to expand that part of its business.

Total JVCKenwood sales for the first half were $1.29 billion (136,391 million yen), down from $1.32 billion a year ago.  Net loss was $56 million compared to $45.1 million a year ago.

But in the automotive sector sales rose to $648.6 million from $627 million a year ago.  Also automotive operating income was $293,000 compared to a loss of $7 million a year ago.     JVCKenwood said the sales increase was due to higher sales in the OEM market, and the return to profitability was due to strong consumer sales in Japan “of Saisoku-Navi car navigation systems equipped with audio-visual functions, as well as dashcams.”   It said consumer sales overseas were also strong.




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