The last few months of 2015 saw mixed results from leading car stereo companies who are benefiting from increased electronics in news cars but who are facing headwinds such as lower car sales in China.
Car navigation sales are up for some companies and down for others. Simple car CD player sales for aftermarket and OEM are down most companies. JVCKenwood said sales were strong for car audio AV radios in the US.
Pioneer reported a profit of $2.4 million (245 million yen) on lower sales, compared to a loss of $20 million for the same period a year ago.
The company attributed the gains to its newly streamlined operations and lower general sales expenses.
It also said sales of car navigation products increased while sales of car audio CD players declined.
Pioneer’s quarter ran from October to December 2015.
If you look at the first nine months of the year, Pioneer is still running at a loss of $15 million, but this is better than the loss of $41 million for the same period a year ago.
Sales at Pioneer were $1.02 billion (116,861 million yen) for the quarter, down from $1.2 billion for the quarter a year earlier.
For the full year fiscal 2016 ending in March, Pioneer is forecasting a profit of $8.7 million (1,000 million yen) on sales of $3.97 billion.
JVCKenwood reported higher sales but lower income for the first nine months (April-December). Net sales were $1.83 billion for the period (214,540 million yen) versus $1.77 billion for the same period a year ago. But net income pushed further into negative territory, at a loss of $48.38 million, compared to a loss of $5.57 million a year ago.
For the full fiscal year ended March 31, 2016, JVCKenwood expects profits of $1.3 million on sales of $2.6 billion.
Alpine reported a net profit, but it was based on a gain from the sales of shares associated with business restructuring. Alpine sales and operating income decreased for the first nine months (April-December).
Total sales were $1.76 billion (205,446 million yen) down from $1.85 million yen the year prior. Net profit increased to over $95 million compared to almost $74 million a year ago.
For the full fiscal year ended March 31, Alpine expects profits of $78.3 million on sales of $2.4 billion.
Source: Pioneer, Alpine, JVCKenwood
Hey guys, We made money but we lost money… = Japaneese Spin for we have no clue!
It’s ridiculous how the big japanese mobile electronics firms keep promising recovery year after year, yet they can barely scratch a fraction of 1% in projected profits, with the exception of Alpine’s 3.26%
Your typical bank account would pay better at their crappy average of 1% interest rate, compared to Pioneer’s 0.22% and JVC Kenwood’s 0.05% projected profits.
I’m dumbfounded by what must be crossing their investors’ minds… wishful thinking I guess.
I guess they could become a target for cheap acquisitions by Chinese firms looking for an inexpensive way into a famous brand.