Sales steeply declined at both Alps Alpine and JVCKenwood during the pandemic from April through June.
Profits also plummeted.
“The global automotive market has faced difficult conditions, including a significant decline in automobile sales due to the spread of novel corona virus infections,” said Alps Alpine.
“The outlook for the global economy remains bleak due to the outbreak of the novel coronavirus (COVID-19) and a decline in consumer spending caused by restrictions on movement in the U.S.,” it added. In Europe, the economy remains sluggish due to low consumption and lock downs in major cities,” the company said. In China, economic activity gradually resumed after March, “but economic stagnation has continued as the impact of the novel coronavirus on the economy is expected to be prolonged. In Japan, the declaration of a state emergency issued from April to the end of May had a significant effect on consumer spending, and although the government announced economic recovery measures, the economy as a whole remains sluggish due to flagging consumer spending,” said Alps Alpine.
For its Automotive Infotainment Segment for the three months ended June 30, Alps Alpine reported sales of $449 million (47.6 billion yen), down 40 percent from the period last year. The sector swung to an operating loss of $36 million compared to an operating gain of $23 billion last year.
For all Alps Alpine sectors, sales were $1.3 billion, down from $1.9 billion last year and net income fell to a loss of $85 million compared to a loss of $10 million for the year ago quarter.
Alps Alpine’s future strategies include the pursuit of digital key technology for car sharing and utilizing 5G in autonomous driving, it said.
JVCKenwood
JVCKenwood’s Automotive Sector reported sales of $246 million compared to $376 million a year ago. Operating income for the segment swung to a loss of $2 million compared to a gain of $10 million a year ago. The company also saw losses in its other divisions: Public Service (handheld radios) and Media Service (professional cameras). Total JVCKenwood revenue fell to $480 million, down from $691 million last year. Net profits swung to a loss of $34 million compared to a profit of over $8 million last year.
