JVCKENWOOD’s reported an increase in both sales and operating income for its Mobile & Telematics (M&T) automotive division for the first half of the fiscal year ending September 30.
The company cited higher sales in the Japanese car dealer-installed option business as well as higher revenue in the aftermarket and telematics businesses, and the depreciation of the yen.* Core operating income increased mainly due to the company’s receipt of a US tariff refund.
M&T revenue rose to $684 million (107.6 million yen) compared to $606 million a year ago. Operating income rose to $19 million, up from $16 million a year ago.
For total JVCKENWOOD results, all divisions, revenue totaled $1.17 billion (183.8 billion yen) compared to $1.08 billion a year ago. Operating profit rose to $73 million, up from $61 million a year ago. Overall profit rose to $52 million for the first half of JVCKENWOOD’s fiscal year compared to $48 million a year ago.
Alps Alpine Results
Alps Alpine sales in its Mobility division (which includes Alpine) rose during the first half ended September 30, but operating income fell.
Mobility sector sales rose to $1.83 billion (288 billion yen), up from $1.68 billion for the same period a year ago. Operating income swung to a loss of $9.5 million, compared to a profit of $36 million a year ago.
Alps Alpine said the operating loss was due to increased memory prices. The company said, in general, it is shifting its product mix to reduce “unprofitable models” and is moving instead to “high-value-added products.” Alps Alpine is also reducing fixed costs in its Mobility sector by restructuring production.
Overall for all divisions, Alps Alpine said it expects second half earnings to improve, mainly through adjusting its prices.
For total Alps Alpine sales, all divisions, net sales for its fiscal first half were $3.4 billion compared to $3.2 billion a year ago. Operating income was about $84 million, compared to $135 million a year ago. Profits fell to $18.4 million compared to $84 million a year ago.
* When the yen depreciates, Japanese goods are relatively cheaper when sold overseas giving them a competitive advantage. Also, the money coming back from overseas is more valuable in Japan.
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