Pioneer announced a slide in both sales and profits for the full fiscal year 2017 ending March 31.
Total sales fell 14 percent and sales for car electronics, specifically, declined 12.7 percent to $2.76 billion. Pioneer reported lower than expected profits in consumer sales of car audio. Pioneer said profits, “which had expected to be higher, resulted in the same level as [last year], reflecting changes in launching schedule of overseas car audio products, model mix in car navigation system for Japanese market, and sluggish sales in emerging markets.”
While sales of car audio and navigation to consumers in North America fell for the year, the company singled out Mexico as one of the more disappointing markets.
Pioneer said of car electronics, “…operating income didn’t reach the target, resulting from lower Car Electronics sales for consumer markets mainly in emerging countries such as Mexico.”
Overall for all divisions, Pioneer reported sales of $3.4 billion (386,682 million yen) compared to $3.96 billion a year ago. Operating income fell about 43 percent to about $36.7 million, down from $64 million a year ago. Net income swung to a loss of $44.6 million, down from a gain of $6.4 million a year ago.
It should be noted that during the year, the average value of the Japanese yen rose 10.9 percent against the dollar, which also hurt sales, said the company.
Pioneer also listed its goals for the coming fiscal year 2018 ending March 2018. In consumer car audio/navigation it said, “we will maintain stable profitability and increase sales…by strengthening our smartphone-linked product lineup, proposing new value in the business areas of reliability and safety, and pursuing audio entertainment.”
For future technology, the company said, “In the map business and autonomous driving field, we are making preparations to roll out samples of the 3D-LiDAR sensor, which is essential for autonomous driving. Furthermore, we aim to create a “data ecosystem” for advanced maps, in which maps for autonomous driving can be efficiently created and updated, mainly through our alliance with HERE Technologies, the Netherlands-based global provider of mapping and location services, and our participation in Japanese governmental projects.”
Forecasting for the coming year, Pioneer predicts sales will remain about flat with this year at $3.4 billion with operating income of $88 million and net income of $31 million. It said the release of new consumer car electronics products will help spur sales.
I’m not sure what Pioneer was expecting…they are trying to sell 25 year old CD technology at a premium price. When that fails they dump inventory on the internet below their acquisition price in monthly fire sales. Dump..repeat…dump..repeat. Good business plan to keep the Asian factories crankin out. Fidget Spinners have a higher profit margin than this company.
I sell Pioneer but online sales devalue the brand. A lot of companies are aware of this and are changing. Wonder when Pioneer will see the light.
AGREED!
who would have thought that when the product is sold online at under a dealers cost that dealers would leave the brand.
Protect the brands profitability and dealers will all want to carry the line.
Haha you guys must not know how to sell Pioneer.
do not worry pioneer, you can open up another 3kings.
You reap what you sow
this is good news. I hope they fall fast and hard. They are a terrible company.