Pioneer’s Losses Widen

Pioneer’s net loss tripled for the first half of the Japanese fiscal year ended September 30, and the company revised downward its sales outlook for the full year.

Sales of car electronics specifically fell 5.6 percent due to declines in both consumer and OEM sales.  Consumer car navigation sales specifically fell mainly due to a decline in Japanese sales.  But sales of telematics services increased due to work with Japanese insurance companies.

Overall, Pioneer’s net sales for the first half fell 3 percent, and its net loss plummeted due to lower margins, unfavorable exchange rates and lower sales.

Sales totaled $1.51 billion (170,928 million yen) down slightly from $1.56 billion for the period a year ago. The company reported a net loss of almost $88 million compared to a net loss of $23.4 million for the first half last year.

Operating income swung to a loss of almost $15 million compared to a positive operating income of over $18 million a year ago.

Ordinary incomes was negative $32 million compared to a loss of $3.2 million a year ago.

The declines were prevalent throughout the second quarter specifically.  Net sales for the quarter fell 6.2 percent to $769 million, down from $820 million a year ago.  The company reported a wider net loss of almost $29 million compared to a loss of $5.4 million for the quarter a year ago.

For the full year, Pioneer lowered its sales forecast to about $3.1 billion in sales compared to its previous forecast of $3.35 billion.  It held its operating loss forecast at $44.1 million.  Pioneer has not forecast profits for the full year.  Regarding profits it said, “…we are currently pursuing consultations on support by a sponsor, and will announce the projection once the impact of the management improvement measures including revision measures in the OEM business has been determined.”