JVCKenwood Corporation changed its forecast for the full year that ended March 31. Instead of a swing to a net loss of $13 million as predicted earlier, the company expects profits to hit $18.5 million (2 billion yen).
Revenue is also forecast to be better than expected by 5 percent at $2.5 billion, instead of the earlier forecast of $2.4 billion. And operating profit will beat earlier forecasts by 140 percent at $44.4 million, up from the previous forecast last August of $18.5 million.
JVCKenwood said its fourth quarter was racked by shortages which slowed production, citing “delays in the delivery of components, mainly semiconductors, as well as logistics stagnation and delays amid the resurgence of COVID-19.” But due to strong sales in the third quarter, plus a “COVID-10 Emergency Measures Project,” sales and profit overall for the year will be up.
In the third quarter (October-December 2020), JVCKenwood’s aftermarket sales rose 5 percent, it reported. The aftermarket represents about 30 to 35 percent of JVCKenwood’s automotive sales.
Source: JVCKenwood Corporation