Pioneer announced further declines in sales and profits due in part to lower sales of navigation systems to OEMs.
Pioneer sales fell 5.5 percent to the equivalent of $3.3 billion (365.4 billion yen), down from $3.5 billion last year and $4.1 billion two years prior.
The company posted a wider loss of $64.8 million for the fiscal year 2018 ended in March, compared to a loss of $46.5 million a year ago.
Sales in North America (including OEM sales) totaled almost $700 million, down almost 9 percent from $766 million a year ago and down from $924 million two years ago.
Pioneer said, “Compared with our previous plans, operating income did not reach the target, resulting from lower Car Electronics sales for consumer marketing in Japan and emerging countries [and] the deterioration of the cost of sales ratio in the OEM business of Car Electronics…”
As a result, Pioneer said, “We are examining significant revision measures in the OEM business” for the coming year.
However, in North America specifically, Pioneer also cited lower sales of consumer navigation systems for the declines.
For the coming year, Pioneer anticipates lower North American sales yet again of $629 million, due to lower OEM sales of car navigation devices.
Total (global) net sales for the coming year are expected to increase, however, to $3.5 billion. But operating income is expected to swing to a loss of $45 million compared to operating gains this past year of $11 million.