Both Alps Alpine and JVCKenwood said COVID-19 has had a significant impact on sales for their recent quarter and year ending March 31.
JVCKenwood said the virus hit in Japan’s fiscal fourth quarter, which is JVCKenwood’s “biggest sales season for the [Automotive] Group.”
Alps Alpine said many of its manufacturing plants closed and that the automakers it supplies also closed their plants.
Both companies lowered their financial forecasts for the year ended March 31, 2020.
Before the pandemic, Alps Alpine had forecast profits of $94 million and now expects to swing to a loss of $36 million. Last year, profits were $207 million.
Alps Alpine had forecast in January that it would close the year with sales of $7.9 billion (844 billion yen). It now forecasts sales of $7.6 billion. Last year’s sales totaled $8 billion. Operating income had been forecast at $383 million and is now expected to be $250 million. Last year, operating income was $464 million.
JVCKenwood profits are expected to fall to $8.4 million, down from the earlier forecast $37.4 million. Last year’s profits amounted to $36 million.
JVCKenwood had forecast sale of $2.9 billion and operating profit of $69 million for the year ended March 31, 2020 but it now expects sales to total $2.7 billion with an operating profit of $37.4 million. By contrast, last year the company reported sales of $2.87 billion with an operating profit of $68 million.