Pioneer Forecasts Narrower Losses for Full Year
Sales for Pioneer’s fiscal 2010 Q3 ended Dec. 31 decreased but operating income rose and net loss improved compared with a year ago, the company said Tuesday. It also forecast lower full-year sales, but said its losses would narrow compared with fiscal 2009.
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Q3 sales fell 9.3 percent to $1.29 billion (119.1 billion yen) compared with the year-ago period. This was mainly the result of lower sales in the plasma display business, from which Pioneer will withdraw, the company said. It recorded $10.9 million operating income (one billion yen), compared with an 11.4 billion yen loss in fiscal 2009’s Q3. Net loss narrowed to $42.1 million (3.9 billion yen), compared with 30 billion yen a year ago.
Revenue from car electronics fell 2.4 percent year-on-year to $704 million because of lower sales of car navigation systems, despite higher car audio product sales, Pioneer said. In
car navigation systems, consumer sales declined mainly in Japan, while OEM sales fell in Japan and North America. In car audio, consumer sales rose in Central and South America and India, despite lower sales in North America. OEM sales increased because of higher sales in Japan, China and North America. Operating income for the segment was $23.7 million or 2.2 billion yen, compared with a 1.2 billion yen operating loss in Q3 of fiscal 2009.
Home Electronics sales fell 24.4 percent year-on-year to $422 million, due to lower sales of plasma displays and DVD drives, and despite higher sales of Blu-ray Disc-related products as an optical disc joint-venture commenced operations, Pioneer said. Sales in Japan increased 40.6 percent to $156.3 million, while overseas sales declined by the same percentage to $266
million. The segment had a $25.2 million or 2.3 billion yen operating loss, compared with 9.8 billion yen loss in Q3 of fiscal 2009.
For the year ending March 31, Pioneer revised its sales forecast downward to 445 billion yen from 451 billion yen, mainly based on lower-than-projected sales of consumer car-navigation systems. Despite the reduced sales forecast, Pioneer revised its operating loss forecast to 26.1 billion yen from 25.5 billion yen, primarily reflecting the reduction in fixed costs and improvement in the gross profit margins. It also revised its net loss forecast to 54 billion yen from 59.5 billion yen.