JVCKENWOOD and Alps Alpine reported full year results for the Japanese financial year ending March 31, 2023.
Total JVCKENWOOD sales for the year were $2.5 billion (336,910 million yen), up from $2.1 billion a year ago. Operating income soared to $161 million from $68 million a year ago.
JVCKENWOOD net profits nearly tripled to $121 million compared to $44 million a year ago.
Almost 60 percent of JVCKENWOOD sales are in Mobility & Telematics (aftermarket and OEM car audio, dashcams and data services). In February, JVCKENWOOD reported that its M&T sector is 27.5 percent aftermarket and 62 percent OEM, with the rest comprising “service.”
For the year, M&T sales were up 33 percent to $1.46 billion and operating income rose 2 percent. M&T revenue is expected to increase to $1.55 billion for the new fiscal year ended March 31, 2024.
In the M&T sector, JVCKENWOOD increased its OEM business, including orders for OEM speakers, amplifiers, antennas and cables in Europe and China. It also saw new orders for car audio and video in Asia and the Americas.
Also, in the sector JVCKENWOOD will start shipping connected dashcams in Japan this month.
For the coming fiscal year, the company is forecasting total sales of $2.6 billion and profits close to $60 million.
Alps Alpine results for the sector that includes car electronics (Module and System Segment) saw a 31 percent increase in net sales to $3.5 billion (481.2 billion yen) compared to the year earlier. Ordinary income, however, continued in the red, with a loss of $48 million. This was narrower than the loss a year ago at $60 million.
Sales were higher in the sector due to increased demand for automotive parts along with a worldwide recovery in automobile production, said Alps Alpine. It also credited new products launched in the past few months. But profits were hurt by “soaring material costs,” as well as delays and shortages, and higher overall production costs, said the corporation.
For the coming year, Alps Alpine forecasts sales in this segment of $4 billion and operating income of $29 million.
Alps Alpine will “work to eliminate unprofitable products…and make prices appropriate in response to soaring material costs and rising wages and energy costs,” said its recent financial statement.
For the total corporation, including other sectors such as Components and Sensors and Communication, Alps Alpine saw sales of $6.8 billion for the year compared to sales of $5.8 billion a year ago. Operating income dropped to $245 million from $256 million a year ago. Net profit was halved to $83 million, compared to $167 million a year ago, as the company took an impairment loss due to withdrawing from some businesses.