TIDM35SV
RNS Number : 0005X
Pioneer Corporation
06 August 2009
For Immediate Release
August 6, 2009
Pioneer Announces Business Results for 1Q Fiscal 2010
TOKYO - Pioneer Corporation today announced its consolidated first-quarter
business results for the period ended June 30, 2009.
Consolidated Financial Highlights
+-----------------------------------+--+--------------+--+--------------+--+------------+
| (In millions of yen except per share information) |
+---------------------------------------------------------------------------------------+
| | | Three months ended June 30 |
+-----------------------------------+--+------------------------------------------------+
| | | 2009 | | 2008 | | % to |
| | | | | | | prior year |
+-----------------------------------+--+--------------+--+--------------+--+------------+
| Net Sales | | JPY95,757 | | JPY160,966 | | 59.5% |
+-----------------------------------+--+--------------+--+--------------+--+------------+
| Operating loss | | (8,756) | | (6,825) | | - |
+-----------------------------------+--+--------------+--+--------------+--+------------+
| Ordinary loss | | (8,941) | | (5,517) | | - |
+-----------------------------------+--+--------------+--+--------------+--+------------+
| Net loss | | JPY(4,099) | | JPY(9,487) | | -% |
+-----------------------------------+--+--------------+--+--------------+--+------------+
| | | | | | | |
+-----------------------------------+--+--------------+--+--------------+--+------------+
| Net loss per share | | JPY(19.99) | | JPY(46.27) | | |
+-----------------------------------+--+--------------+--+--------------+--+------------+
Consolidated Business Results
For the first quarter of fiscal 2010, the three months ended June 30, 2009,
consolidated net sales decreased 40.5% from the first quarter of fiscal 2009 to
JPY95,757 million (US$997.5 million). This was mainly the result of a decline in
sales of car audio products, DVD drives, plasma displays and car navigation
systems, which largely reflected the sharp deterioration in consumer spending
worldwide and the impact of the yen's appreciation.
Pioneer recorded an operating loss of JPY8,756 million (US$91.2 million),
compared with an operating loss of JPY6,825 million in the first quarter of
fiscal 2009, reflecting the drop in net sales and deterioration in the gross
profit margin, despite lower selling, general and administrative expenses,
mainly owing to restructuring benefits and the recording of a lump-sum fee
income from patents related to plasma displays. The net loss improved from
JPY9,487 million in the first quarter of fiscal 2009 to JPY4,099 million
(US$42.7 million). This improvement mainly reflected the recording of a gain on
sales of noncurrent assets such as patents related to plasma displays, and
decreased income taxes.
During the first quarter of fiscal 2010, the average value of the Japanese
yen appreciated 7.4% against the U.S. dollar and 23.3% against the euro,
compared with the first quarter of fiscal 2009.
Car Electronics sales decreased 38.4% year on year to JPY54,235 million
(US$564.9 million) because of lower sales of both car audio products and car
navigation systems, mainly due to lackluster auto sales worldwide. In car
navigation systems, consumer-market sales declined year on year, due to lower
sales in Japan. OEM sales decreased because of lower sales in North America and
Japan. In car audio products, consumer-market sales declined, mainly due to
lower overseas sales. OEM sales decreased because of lower sales in Japan and
North America. Total OEM sales in this segment accounted for approximately 39%
of Car Electronics sales, compared with approximately 41% in the first quarter
of fiscal 2009.
In terms of geographic sales, sales in Japan decreased 29.4% to JPY24,630
million (US$256.6 million), and overseas sales declined 44.4% to JPY29,605
million (US$308.4 million).
This segment recorded an operating loss of JPY8,693 million (US$90.6
million), compared with operating income of JPY1,704 million in the first
quarter of fiscal 2009. This was mainly due to lower net sales, as well as
deterioration in the gross profit margin caused by a decline in production
volume and the yen's appreciation, primarily in the car audio products business.
Home Electronics sales decreased 48.2% year on year to JPY29,705 million
(US$309.4 million). Despite increased sales of Blu-ray Disc players due to
favorable sales of new models, the decrease in Home Electronics sales largely
reflected a drop in DVD drive sales mainly for PC manufacturers, as well as
lower overseas sales in the plasma display business, from which Pioneer will
withdraw by the end of fiscal 2010.
In terms of geographic sales, sales in Japan increased 17.1% year on year to
JPY7,762 million (US$80.9 million) due to higher sales of Blu-ray Disc drives,
while overseas sales decreased 56.7% to JPY21,943 million (US$228.6 million).
Operating income in this segment was JPY1,020 million (US$10.6 million)
compared with an operating loss of JPY7,394 million in the first quarter of
fiscal 2009. Despite the drop in net sales, the main reasons for this
improvement were that in plasma displays there were the recording of a lump-sum
fee income from patents, improvement in the gross profit margin, and reduced
operating expenses.
In the Others segment, sales decreased 23.9% year on year to JPY11,817 million
(US$123.1 million) due principally to lower sales of factory automation systems,
electronics devices and parts, speaker units for cellular phones and organic
light-emitting diode displays.
In terms of geographic sales, sales in Japan decreased 20.3% to JPY8,269
million (US$86.1 million), and overseas sales decreased 31.2% to JPY3,548
million (US$37.0 million).
The operating loss in this segment was JPY1,615 million (US$16.8 million)
compared with JPY264 million in the first quarter of fiscal 2009. The larger
operating loss mainly resulted from the drop in net sales and deterioration in
the gross profit margin.
Note: Operating income (loss) in each business segment represents operating
income (loss) before elimination of intersegment transactions.
Consolidated Financial Position
Total assets as of June 30, 2009 were JPY418,236 million (US$4,356.6 million), a
decrease of JPY10,857 million from March 31, 2009, mainly reflecting decreases
in inventories, and cash and deposits. Inventories declined JPY8,393 million
from March 31, 2009 to JPY76,493 million (US$796.8 million), as we pressed ahead
with inventory reductions centered on car audio products. Cash and deposits
decreased JPY3,776 million from the previous fiscal year-end to JPY59,969
million (US$624.7 million).
Total liabilities as of June 30, 2009 were JPY307,034 million (US$3,198.3
million), down JPY10,211 million from March 31, 2009. This mainly reflected a
decrease of JPY9,652 million in accrued expenses, chiefly due to the payment of
special retirement benefits for the early retirement programs implemented in
fiscal 2009.
Total equity was JPY111,202 million (US$1,158.4 million), a decrease of JPY646
million. This chiefly reflected a decline of JPY4,099 million in retained
earnings due to the recording of a net loss, despite an increase of JPY4,012
million in unrealized gain on available-for-sale securities, resulting from a
rise in the market value of investment securities compared with March 31, 2009.
Cash Flows
During the first quarter of fiscal 2010, operating activities used net cash of
JPY7,409 million (US$77.2 million). The main factors reducing cash were a loss
before income taxes and minority interests of JPY4,021 million (US$41.9
million); a decrease in accrued expenses of JPY10,122 million (US$105.4
million), mainly reflecting the payment of special retirement benefits; as well
as a decrease in accrued pension and severance costs of JPY2,758 million
(US$28.7 million). These factors outweighed the addback of non-cash expenses,
namely depreciation and amortization of JPY10,487 million (US$109.2 million).
Investing activities provided net cash of JPY3,342 million (US$34.8 million).
This mainly reflected proceeds of JPY9,045 million (US$94.2 million) from sales
of noncurrent assets, such as patents related to plasma displays, despite
capital expenditures of JPY5,890 million (US$61.4 million) mainly in the Car
Electronics business. Financing activities provided net cash of JPY1 million
(US$0.01 million), mainly due to a net increase in short-term borrowings,
despite the repayment of long-term debt.
Consequently, cash and cash equivalents at June 30, 2009 were JPY59,969
million (US$624.7 million), down JPY3,777 million from March 31, 2009.
Business Forecasts for Fiscal 2010
Consolidated business forecasts for fiscal 2010, ending March 31, 2010, have not
been changed from those announced on May 13, 2009, as shown below.
In the first quarter of fiscal 2010, net sales and losses were both better than
our plan mainly due to a smaller-than-expected drop in plasma display prices and
weaker-than-expected yen exchange rates. However, we have conservatively
estimated consumption trends and the competitive environment from the second
quarter of fiscal 2010 onward. The average yen-U.S. dollar and yen-euro exchange
rates for these consolidated business forecasts are JPY90 and JPY115,
respectively. The figures below do not include the impact of the optical disc
joint venture business with Sharp Corporation.
+-----------------------+-+-------------+-+-------------+-+----------+-+-------------+-+--------------+-+----------+
| | | | | (In millions of yen) |
+-----------------------+-+------------------------------------------+-+-------------------------------------------+
| | | First half | | Full year |
+-----------------------+-+------------------------------------------+-+-------------------------------------------+
| | | Forecasts | | Results | | Percent | | Forecasts | | Results | | Percent |
| | | for | | for | | changes | | for | | for | | changes |
| | | fiscal | | fiscal | | | | fiscal | | fiscal | | |
| | | 2010 | | 2009 | | | | 2010 | | 2009 | | |
+-----------------------+-+-------------+-+-------------+-+----------+-+-------------+-+--------------+-+----------+
| Net | | JPY195,000 | | JPY327,042 | | -40.4% | | JPY420,000 | | JPY558,837 | | -24.8% |
| sales | | | | | | | | | | | | |
+-----------------------+-+-------------+-+-------------+-+----------+-+-------------+-+--------------+-+----------+
| Operating | | (32,000) | | (14,340) | | - | | (33,000) | | (54,529) | | - |
| loss | | | | | | | | | | | | |
+-----------------------+-+-------------+-+-------------+-+----------+-+-------------+-+--------------+-+----------+
| Ordinary | | (35,000) | | (13,540) | | - | | (37,500) | | (54,420) | | - |
| loss | | | | | | | | | | | | |
+-----------------------+-+-------------+-+-------------+-+----------+-+-------------+-+--------------+-+----------+
| Net | | JPY(47,000) | | JPY(44,071) | | -% | | JPY(83,000) | | JPY(130,529) | | -% |
| loss | | | | | | | | | | | | |
+-----------------------+-+-------------+-+-------------+-+----------+-+-------------+-+--------------+-+----------+
Progress with Restructuring
Pioneer is currently implementing drastic restructuring comprising measures to
realign the business portfolio, streamline the business framework of the entire
Pioneer group, and improve the Company's financial position.
Regarding business portfolio realignment, in its core Car Electronics business,
Pioneer has entered into a memorandum of understanding with Mitsubishi Electric
Corporation concerning joint development of car navigation platforms and has
begun development work. We are also proceeding with discussions to start a joint
venture in October 2009 with Shanghai Automotive Industry Corporation (Group) of
China. In the display business, Pioneer plans to completely withdraw from this
business after ending plasma TV sales by March 31, 2010, as scheduled. Regarding
the optical disc joint venture with Sharp Corporation, Pioneer decided, at a
meeting of its Board of Directors held today, to transfer its optical disc
business to the new company and preparations are under way to begin operations
at the joint venture from October 1, 2009.
Regarding streamlining the business framework of the entire Pioneer group, we
are consolidating our current network of production companies around the world.
Four companies have already been closed. Going forward, we plan to close two
additional companies and downsize the operations of three companies by December
31, 2009. Plans also call for closing three additional companies and downsizing
the operations of three more companies by March 31, 2010. Regarding our sales
structures in Japan, from October 1, 2009, we plan to integrate domestic sales
divisions and companies into two sales companies, one each for the Car
Electronics and Home Electronics businesses, in order to raise efficiency.
Regarding streamlining overseas sales structures, we plan to implement measures
in North America and Europe from the fall to the end of December 2009. We have
already completed such measures in other regions. Furthermore, aiming to
optimize the efficiency of Headquarters and back office functions, we are
planning to conduct organizational changes on October 1, 2009 and we expect to
integrate Pioneer's network of five operating bases in Japan into two locations
at Kawasaki and Kawagoe by March 31, 2010. With regard to readjustments of
personnel levels accompanying these measures, in Japan, we are implementing
special early retirement programs with a retirement date of September 30, 2009.
Overseas, we plan to implement personnel reductions by March 31, 2010.
Regarding improving the Company's financial position, Pioneer has worked to
generate cash mainly through inventory reductions and the sales of noncurrent
assets such as patents related to plasma displays. In regard to boosting equity
capital, Pioneer has agreed with Honda Motor Co., Ltd. to conduct a JPY2.5
billion third-party allotment of shares to this company, and discussions are
proceeding on the implementation period. Furthermore, Pioneer is currently
conducting negotiations on new financial partnerships with potential sponsors,
with the aim of raising funds of around JPY40 billion.
In this manner, restructuring is proceeding largely on schedule. Going forward,
we will continue making every effort to complete restructuring by the end of
fiscal 2010.
Material Events Regarding Going Concern Assumption
Pioneer's financial position has deteriorated due to a sharp drop in net sales,
large losses and significant net cash used in operating activities. As a result,
conditions have given rise to material uncertainty about Pioneer's ability to
continue its business activities into the future. However, Pioneer believes that
this uncertainty can be avoided by steadily implementing the drastic
restructuring that is currently under way.
Also, from fiscal 2009, the Company's business performance has triggered
breaches of financial covenants stipulated by loan agreements with multiple
banks. However, in recognition of the Company's situation as described above,
the banks have agreed to maintain their existing loans to Pioneer based on loan
agreements. Furthermore, Pioneer has received loans on an ongoing basis chiefly
from its main banks, which have pledged their intention to continue providing
financial support to the Company. Pioneer remains committed to improving its
performance by implementing restructuring, while working hard to ensure the
continued support of the banks.
Details of progress with restructuring are provided in the "Progress with
Restructuring" shown above.
Cautionary Statement with Respect to Forward-Looking Statements
Statements made in this release with respect to our current plans, estimates,
strategies and beliefs, and other statements that are not historical facts are
forward-looking statements about our future performance. These statements are
based on management's assumptions and beliefs in light of the information
currently available to it. We caution that a number of important risks and
uncertainties could cause actual results to differ materially from those
discussed in the forward-looking statements, and therefore you should not place
undue reliance on them. It is not our obligation to update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise. We disclaim any such obligation. Risks and uncertainties
that might affect us include, but are not limited to: (i) general economic
conditions in our markets, particularly levels of consumer spending; (ii)
exchange rates, particularly between the Japanese yen and the U.S. dollar, the
euro, and other currencies in which we make significant sales or in which our
assets and liabilities are denominated; (iii) our ability to continuously design
and develop highly rated products and services in extremely competitive markets,
which are characterized by continual product launches, rapid technological
development, intense price-based competition, subjective and changing consumer
preferences and other factors; (iv) our ability to successfully implement our
business strategies; (v) our ability to compete, as well as develop and
implement successful sales and distribution strategies, in light of
technological developments in and affecting our businesses; (vi) our continued
ability to devote sufficient resources to research and development, and capital
expenditure; (vii) our ability to continuously enhance our brand image; (viii)
the success of our joint ventures and alliances; (ix) the success of our
business restructuring plans; and (x) the outcome of contingencies.
Pioneer Corporation is a leading global manufacturer of consumer- and
business-use electronics products such as car electronics, audio and video
products. Its shares are traded on the Tokyo Stock Exchange.
# # # # # #
The U.S. dollar amounts in this release represent translations of Japanese yen,
for convenience only, at the rate of JPY96=US$1.00, the approximate rate
prevailing on June 30, 2009.
Attached are consolidated financial statements for the three months ended June
30, 2009.
For further information, please contact:
Investor Relations Department, Corporate Communications Division
Pioneer Corporation, Tokyo
Phone: +81-3-3495-6773 / Fax: +81-3-3495-4301
E-mail: pioneer_ir@post.pioneer.co.jp
IR Website: http://pioneer.jp/ir-e/
(1) CONSOLIDATED BALANCE SHEETS
+----------------------------------------------------+-+------------+-+------------+
| | | (In millions of yen) |
+----------------------------------------------------+-+---------------------------+
| | | June 30, | | March 31, |
| | | 2009 | | 2009 |
+----------------------------------------------------+-+------------+-+------------+
| ASSETS | | | | |
+----------------------------------------------------+-+------------+-+------------+
| Current assets: | | | | |
+----------------------------------------------------+-+------------+-+------------+
| Cash and deposits | | JPY59,969 | | JPY63,745 |
+----------------------------------------------------+-+------------+-+------------+
| Trade receivables | | 62,784 | | 60,989 |
+----------------------------------------------------+-+------------+-+------------+
| Merchandise and finished goods | | 41,224 | | 45,169 |
+----------------------------------------------------+-+------------+-+------------+
| Work in process | | 12,763 | | 14,699 |
+----------------------------------------------------+-+------------+-+------------+
| Raw materials and supplies | | 22,506 | | 25,018 |
+----------------------------------------------------+-+------------+-+------------+
| Deferred tax assets | | 6,709 | | 7,097 |
+----------------------------------------------------+-+------------+-+------------+
| Other current assets | | 20,559 | | 17,420 |
+----------------------------------------------------+-+------------+-+------------+
| Allowance for doubtful receivables | | (2,004) | | (2,035) |
+----------------------------------------------------+-+------------+-+------------+
| Total current assets | | 224,510 | | 232,102 |
+----------------------------------------------------+-+------------+-+------------+
| Noncurrent assets: | | | | |
+----------------------------------------------------+-+------------+-+------------+
| Property, plant and equipment: | | | | |
+----------------------------------------------------+-+------------+-+------------+
| Buildings and structures | | 102,526 | | 102,285 |
+----------------------------------------------------+-+------------+-+------------+
| Machinery, vehicles, | | 175,639 | | 176,593 |
| tools, furniture and | | | | |
| fixtures | | | | |
+----------------------------------------------------+-+------------+-+------------+
| Others | | 33,780 | | 34,078 |
+----------------------------------------------------+-+------------+-+------------+
| Accumulated depreciation | | (202,674) | | (200,789) |
+----------------------------------------------------+-+------------+-+------------+
| Total property, plant and | | 109,271 | | 112,167 |
| equipment | | | | |
+----------------------------------------------------+-+------------+-+------------+
| Intangible assets: | | | | |
+----------------------------------------------------+-+------------+-+------------+
| Goodwill | | 1,400 | | 1,420 |
+----------------------------------------------------+-+------------+-+------------+
| Software | | 36,244 | | 39,215 |
+----------------------------------------------------+-+------------+-+------------+
| Others | | 1,727 | | 4,163 |
+----------------------------------------------------+-+------------+-+------------+
| Total intangible assets | | 39,371 | | 44,798 |
+----------------------------------------------------+-+------------+-+------------+
| Investments and other assets: | | | | |
+----------------------------------------------------+-+------------+-+------------+
| Investment securities | | 22,724 | | 18,972 |
+----------------------------------------------------+-+------------+-+------------+
| Deferred tax assets | | 13,580 | | 12,484 |
+----------------------------------------------------+-+------------+-+------------+
| Others | | 8,696 | | 8,470 |
+----------------------------------------------------+-+------------+-+------------+
| Allowance for doubtful | | (7) | | (7) |
| accounts | | | | |
+----------------------------------------------------+-+------------+-+------------+
| Total investments and | | 44,993 | | 39,919 |
| other assets | | | | |
+----------------------------------------------------+-+------------+-+------------+
| Total noncurrent assets | | 193,635 | | 196,884 |
+----------------------------------------------------+-+------------+-+------------+
| Deferred assets | | 91 | | 107 |
+----------------------------------------------------+-+------------+-+------------+
| Total assets | | JPY418,236 | | JPY429,093 |
+----------------------------------------------------+-+------------+-+------------+
+--------------------------------------------------------------------+-+------------+-+------------+
| | | (In millions of yen) |
+--------------------------------------------------------------------+-+---------------------------+
| | | June 30, | | March 31, |
| | | 2009 | | 2009 |
+--------------------------------------------------------------------+-+------------+-+------------+
| LIABILITIES | | | | |
+--------------------------------------------------------------------+-+------------+-+------------+
| Current liabilities: | | | | |
+--------------------------------------------------------------------+-+------------+-+------------+
| Trade payables | | JPY49,104 | | JPY40,798 |
+--------------------------------------------------------------------+-+------------+-+------------+
| Short-term borrowings | | 111,020 | | 110,000 |
+--------------------------------------------------------------------+-+------------+-+------------+
| Current portion of long-term debt | | 2,664 | | 2,664 |
+--------------------------------------------------------------------+-+------------+-+------------+
| Accrued income taxes | | 3,344 | | 4,153 |
+--------------------------------------------------------------------+-+------------+-+------------+
| Accrued expenses | | 41,111 | | 50,763 |
+--------------------------------------------------------------------+-+------------+-+------------+
| Warranty reserve | | 4,090 | | 4,222 |
+--------------------------------------------------------------------+-+------------+-+------------+
| Other current liabilities | | 13,841 | | 19,820 |
+--------------------------------------------------------------------+-+------------+-+------------+
| Total current liabilities | | 225,174 | | 232,420 |
+--------------------------------------------------------------------+-+------------+-+------------+
| Long-term liabilities: | | | | |
+--------------------------------------------------------------------+-+------------+-+------------+
| Bonds payable | | 60,600 | | 60,600 |
+--------------------------------------------------------------------+-+------------+-+------------+
| Long-term debt | | 5,910 | | 6,515 |
+--------------------------------------------------------------------+-+------------+-+------------+
| Accrued pension and severance costs | | 10,320 | | 12,704 |
+--------------------------------------------------------------------+-+------------+-+------------+
| Other long-term liabilities | | 5,030 | | 5,006 |
+--------------------------------------------------------------------+-+------------+-+------------+
| Total long-term liabilities | | 81,860 | | 84,825 |
+--------------------------------------------------------------------+-+------------+-+------------+
| Total | | 307,034 | | 317,245 |
| liabilities | | | | |
+--------------------------------------------------------------------+-+------------+-+------------+
| EQUITY | | | | |
+--------------------------------------------------------------------+-+------------+-+------------+
| Shareholders' equity: | | | | |
+--------------------------------------------------------------------+-+------------+-+------------+
| Common stock | | 69,824 | | 69,824 |
+--------------------------------------------------------------------+-+------------+-+------------+
| Capital surplus | | 102,054 | | 102,054 |
+--------------------------------------------------------------------+-+------------+-+------------+
| Retained earnings | | 9,151 | | 13,250 |
+--------------------------------------------------------------------+-+------------+-+------------+
| Treasury stock | | (11,124) | | (11,124) |
+--------------------------------------------------------------------+-+------------+-+------------+
| Total shareholders' equity | | 169,905 | | 174,004 |
+--------------------------------------------------------------------+-+------------+-+------------+
| Valuation and translation adjustments: | | | | |
+--------------------------------------------------------------------+-+------------+-+------------+
| Unrealized gain on | | 5,564 | | 1,552 |
| available-for-sale securities | | | | |
+--------------------------------------------------------------------+-+------------+-+------------+
| Deferred gain (loss) on derivatives | | (193) | | 42 |
| under hedge accounting | | | | |
+--------------------------------------------------------------------+-+------------+-+------------+
| Foreign currency translation | | (63,745) | | (63,549) |
| adjustments | | | | |
+--------------------------------------------------------------------+-+------------+-+------------+
| Pension adjustments | | (1,605) | | (1,551) |
| recognized by foreign | | | | |
| consolidated subsidiaries | | | | |
+--------------------------------------------------------------------+-+------------+-+------------+
| Total valuation and translation | | (59,979) | | (63,506) |
| adjustments | | | | |
+--------------------------------------------------------------------+-+------------+-+------------+
| Minority interests | | 1,276 | | 1,350 |
+--------------------------------------------------------------------+-+------------+-+------------+
| Total equity | | 111,202 | | 111,848 |
+--------------------------------------------------------------------+-+------------+-+------------+
| Total | | JPY418,236 | | JPY429,093 |
| liabilities | | | | |
| and equity | | | | |
+--------------------------------------------------------------------+-+------------+-+------------+
(2) CONSOLIDATED STATEMENTS OF OPERATIONS
+----------------------------------------------------+-+------------+--+------------+
| | | (In millions of yen) |
+----------------------------------------------------+-+----------------------------+
| | | Three months ended June |
| | | 30 |
+----------------------------------------------------+-+----------------------------+
| | | 2008 | | 2009 |
+----------------------------------------------------+-+------------+--+------------+
| Net sales | | JPY160,966 | | JPY95,757 |
+----------------------------------------------------+-+------------+--+------------+
| Cost of sales | | 129,396 | | 86,351 |
+----------------------------------------------------+-+------------+--+------------+
| Gross profit | | 31,570 | | 9,406 |
+----------------------------------------------------+-+------------+--+------------+
| Selling, general and administrative expenses | | 38,395 | | 18,162 |
+----------------------------------------------------+-+------------+--+------------+
| Operating loss | | (6,825) | | (8,756) |
+----------------------------------------------------+-+------------+--+------------+
| Non-operating income: | | | | |
+----------------------------------------------------+-+------------+--+------------+
| Interest income | | 1,035 | | 173 |
+----------------------------------------------------+-+------------+--+------------+
| Dividends income | | - | | 213 |
+----------------------------------------------------+-+------------+--+------------+
| Foreign exchange income | | 865 | | 381 |
+----------------------------------------------------+-+------------+--+------------+
| Others | | 421 | | 126 |
+----------------------------------------------------+-+------------+--+------------+
| Total non-operating income | | 2,321 | | 893 |
+----------------------------------------------------+-+------------+--+------------+
| Non-operating loss: | | | | |
+----------------------------------------------------+-+------------+--+------------+
| Interest expenses | | 755 | | 765 |
+----------------------------------------------------+-+------------+--+------------+
| Others | | 258 | | 313 |
+----------------------------------------------------+-+------------+--+------------+
| Total non-operating loss | | 1,013 | | 1,078 |
+----------------------------------------------------+-+------------+--+------------+
| Ordinary loss | | (5,517) | | (8,941) |
+----------------------------------------------------+-+------------+--+------------+
| Extraordinary income: | | | | |
+----------------------------------------------------+-+------------+--+------------+
| Gain on sales of | | 538 | | 5,954 |
| noncurrent assets | | | | |
+----------------------------------------------------+-+------------+--+------------+
| Others | | 67 | | 8 |
+----------------------------------------------------+-+------------+--+------------+
| Total extraordinary income | | 605 | | 5,962 |
+----------------------------------------------------+-+------------+--+------------+
| Extraordinary loss: | | | | |
+----------------------------------------------------+-+------------+--+------------+
| Impairment loss | | 859 | | - |
+----------------------------------------------------+-+------------+--+------------+
| Loss on valuation of | | - | | 347 |
| investment securities | | | | |
+----------------------------------------------------+-+------------+--+------------+
| Restructuring costs | | - | | 638 |
+----------------------------------------------------+-+------------+--+------------+
| Others | | 93 | | 57 |
+----------------------------------------------------+-+------------+--+------------+
| Total extraordinary loss | | 952 | | 1,042 |
+----------------------------------------------------+-+------------+--+------------+
| Loss before income taxes and minority interests | | (5,864) | | (4,021) |
+----------------------------------------------------+-+------------+--+------------+
| Income taxes?current | | 2,641 | | 670 |
+----------------------------------------------------+-+------------+--+------------+
| Income taxes?deferred | | 934 | | (524) |
+----------------------------------------------------+-+------------+--+------------+
| Total income taxes | | 3,575 | | 146 |
+----------------------------------------------------+-+------------+--+------------+
| Minority interests in income (loss) | | 48 | | (68) |
+----------------------------------------------------+-+------------+--+------------+
| Net loss | | JPY(9,487) | | JPY(4,099) |
+----------------------------------------------------+-+------------+--+------------+
(3) CONSOLIDATED STATEMENT OF CASH FLOWS
+----------------------------------------------------+-+------------+-+------------+
| | | (In millions of yen) |
+----------------------------------------------------+-+---------------------------+
| | | Three months ended June |
| | | 30 |
+----------------------------------------------------+-+---------------------------+
| | | 2008 | | 2009 |
+----------------------------------------------------+-+------------+-+------------+
| I.Cash flows from operating | | | | |
| activities: | | | | |
+----------------------------------------------------+-+------------+-+------------+
| Loss before income | | JPY(5,864) | | JPY(4,021) |
| taxes and minority | | | | |
| interests | | | | |
+----------------------------------------------------+-+------------+-+------------+
| Depreciation and | | 9,672 | | 10,487 |
| amortization | | | | |
+----------------------------------------------------+-+------------+-+------------+
| Impairment loss | | 859 | | - |
+----------------------------------------------------+-+------------+-+------------+
| Decrease in accrued | | - | | (2,758) |
| pension and | | | | |
| severance costs | | | | |
+----------------------------------------------------+-+------------+-+------------+
| Interest and | | (1,333) | | (386) |
| dividends income | | | | |
+----------------------------------------------------+-+------------+-+------------+
| Interest expenses | | 755 | | 765 |
+----------------------------------------------------+-+------------+-+------------+
| Gain on sales and | | (454) | | (5,899) |
| disposal of | | | | |
| noncurrent assets | | | | |
+----------------------------------------------------+-+------------+-+------------+
| Increase in trade | | (10,618) | | (1,071) |
| receivables | | | | |
+----------------------------------------------------+-+------------+-+------------+
| Decrease (increase) | | (14,419) | | 8,784 |
| in inventories | | | | |
+----------------------------------------------------+-+------------+-+------------+
| Increase in trade | | 13,386 | | 8,137 |
| payables | | | | |
+----------------------------------------------------+-+------------+-+------------+
| Decrease in accrued | | (8,166) | | (10,122) |
| expenses | | | | |
+----------------------------------------------------+-+------------+-+------------+
| Other, net | | (3,993) | | (8,794) |
+----------------------------------------------------+-+------------+-+------------+
| Subtotal | | (20,175) | | (4,878) |
+----------------------------------------------------+-+------------+-+------------+
| Interest and | | 1,070 | | 326 |
| dividends income | | | | |
| received | | | | |
+----------------------------------------------------+-+------------+-+------------+
| Interest expenses | | (563) | | (772) |
| paid | | | | |
+----------------------------------------------------+-+------------+-+------------+
| Income taxes paid | | (4,534) | | (2,085) |
+----------------------------------------------------+-+------------+-+------------+
| Net cash used | | (24,202) | | (7,409) |
| in operating | | | | |
| activities | | | | |
+----------------------------------------------------+-+------------+-+------------+
| II.Cash flows from investing | | | | |
| activities: | | | | |
+----------------------------------------------------+-+------------+-+------------+
| Purchase of | | (13,148) | | (5,890) |
| noncurrent assets | | | | |
+----------------------------------------------------+-+------------+-+------------+
| Proceeds from sales | | 768 | | 9,045 |
| of noncurrent assets | | | | |
+----------------------------------------------------+-+------------+-+------------+
| Proceeds from sales | | 89 | | 181 |
| of investment | | | | |
| securities | | | | |
+----------------------------------------------------+-+------------+-+------------+
| Other, net | | (264) | | 6 |
+----------------------------------------------------+-+------------+-+------------+
| Net cash | | (12,555) | | 3,342 |
| provided by | | | | |
| (used in) | | | | |
| investing | | | | |
| activities | | | | |
+----------------------------------------------------+-+------------+-+------------+
| III.Cash flows from financing | | | | |
| activities: | | | | |
+----------------------------------------------------+-+------------+-+------------+
| Net increase in | | 32,298 | | 643 |
| short-term | | | | |
| borrowings | | | | |
+----------------------------------------------------+-+------------+-+------------+
| Repayment of | | (1,005) | | (605) |
| long-term debt | | | | |
+----------------------------------------------------+-+------------+-+------------+
| Dividends paid | | (513) | | - |
+----------------------------------------------------+-+------------+-+------------+
| Other, net | | (156) | | (37) |
+----------------------------------------------------+-+------------+-+------------+
| Net cash | | 30,624 | | 1 |
| provided by | | | | |
| financing | | | | |
| activities | | | | |
+----------------------------------------------------+-+------------+-+------------+
| Effect of exchange rate changes on cash and | | 4,337 | | 289 |
| cash equivalents | | | | |
+----------------------------------------------------+-+------------+-+------------+
| Net decrease in cash and cash equivalents | | (1,796) | | (3,777) |
+----------------------------------------------------+-+------------+-+------------+
| Cash and cash equivalents, beginning of | | 81,180 | | 63,746 |
| period | | | | |
+----------------------------------------------------+-+------------+-+------------+
| Cash and cash equivalents, end of period | | JPY79,384 | | JPY59,969 |
+----------------------------------------------------+-+------------+-+------------+
(4) SEGMENT INFORMATION
<Net Sales by Segment>
+-------------------------+-+------------+-+---------+-+------------+------------+---------+---------+------------+
| | | (In millions of yen) |
+-------------------------+-+-------------------------------------------------------------------------------------+
| | | Three months ended June 30 |
+-------------------------+-+-------------------------------------------------------------------------------------+
| | | 2008 | | 2009 | | % to |
| | | | | | | prior year |
+-------------------------+-+------------------------+-+-----------------------------------+---------+ +
| | | Amount | | % to | | | Amount | | % to | |
| | | | | total | | | | | total | |
+-------------------------+-+------------+-+---------+-+------------+------------+---------+---------+------------+
| Domestic | | JPY34,892 | | 21.7% | | JPY24,630 | | 25.7% | | 70.6% |
+-------------------------+-+------------+-+---------+-+------------+------------+---------+---------+------------+
| Overseas | | 53,203 | | 33.0 | | 29,605 | | 30.9 | | 55.6 |
+-------------------------+-+------------+-+---------+-+------------+------------+---------+---------+------------+
| Car Electronics | | 88,095 | | 54.7 | | 54,235 | | 56.6 | | 61.6 |
+-------------------------+-+------------+-+---------+-+------------+------------+---------+---------+------------+
| Domestic | | 6,628 | | 4.1 | | 7,762 | | 8.1 | | 117.1 |
+-------------------------+-+------------+-+---------+-+------------+------------+---------+---------+------------+
| Overseas | | 50,715 | | 31.5 | | 21,943 | | 22.9 | | 43.3 |
+-------------------------+-+------------+-+---------+-+------------+------------+---------+---------+------------+
| Home Electronics | | 57,343 | | 35.6 | | 29,705 | | 31.0 | | 51.8 |
+-------------------------+-+------------+-+---------+-+------------+------------+---------+---------+------------+
| Domestic | | 10,369 | | 6.4 | | 8,269 | | 8.7 | | 79.7 |
+-------------------------+-+------------+-+---------+-+------------+------------+---------+---------+------------+
| Overseas | | 5,159 | | 3.3 | | 3,548 | | 3.7 | | 68.8 |
+-------------------------+-+------------+-+---------+-+------------+------------+---------+---------+------------+
| Others | | 15,528 | | 9.7 | | 11,817 | | 12.4 | | 76.1 |
+-------------------------+-+------------+-+---------+-+------------+------------+---------+---------+------------+
| Domestic | | 51,889 | | 32.2 | | 40,661 | | 42.5 | | 78.4 |
+-------------------------+-+------------+-+---------+-+------------+------------+---------+---------+------------+
| Overseas | | 109,077 | | 67.8 | | 55,096 | | 57.5 | | 50.5 |
+-------------------------+-+------------+-+---------+-+------------+------------+---------+---------+------------+
| Total | | JPY160,966 | | 100.0% | | JPY95,757 | | 100.0% | | 59.5% |
+-------------------------+-+------------+-+---------+-+------------+------------+---------+---------+------------+
<Business Segments>
+---------------------------+-+-------------+-+-------------+-+-----------+-+------------+-+--------------+-+--------------+
| | | (In millions of yen) |
+---------------------------+-+--------------------------------------------------------------------------------------------+
| Three months ended | | Car | | Home | | Others | | Total | | Corporate | |Consolidated |
| June 30, 2008 | |Electronics | |Electronics | | | | | | and | | |
| | | | | | | | | | |Eliminations | | |
+---------------------------+-+-------------+-+-------------+-+-----------+-+------------+-+--------------+-+--------------+
| Net sales: | | | | | | | | | | | | |
+---------------------------+-+-------------+-+-------------+-+-----------+-+------------+-+--------------+-+--------------+
| Unaffiliated | | JPY88,095 | | JPY57,343 | | JPY15,528 | | JPY160,966 | | - | | JPY160,966 |
| customers | | | | | | | | | | | | |
+---------------------------+-+-------------+-+-------------+-+-----------+-+------------+-+--------------+-+--------------+
| Inter-segment | | 469 | | 113 | | 8,470 | | 9,052 | | JPY(9,052) | | - |
+---------------------------+-+-------------+-+-------------+-+-----------+-+------------+-+--------------+-+--------------+
| Total | | 88,564 | | 57,456 | | 23,998 | | 170,018 | | (9,052) | | 160,966 |
+---------------------------+-+-------------+-+-------------+-+-----------+-+------------+-+--------------+-+--------------+
| Operating income | | JPY1,704 | | JPY(7,394) | | JPY(264) | | JPY(5,954) | | JPY(871) | | JPY(6,825) |
| (loss) | | | | | | | | | | | | |
+---------------------------+-+-------------+-+-------------+-+-----------+-+------------+-+--------------+-+--------------+
+---------------------------+-+-------------+-+-------------+-+------------+-+------------+-+--------------+-+--------------+
| | | (In millions of yen) |
+---------------------------+-+---------------------------------------------------------------------------------------------+
| Three months ended | | Car | | Home | | Others | | Total | | Corporate | |Consolidated |
| June 30, 2009 | |Electronics | |Electronics | | | | | | and | | |
| | | | | | | | | | |Eliminations | | |
+---------------------------+-+-------------+-+-------------+-+------------+-+------------+-+--------------+-+--------------+
| Net sales: | | | | | | | | | | | | |
+---------------------------+-+-------------+-+-------------+-+------------+-+------------+-+--------------+-+--------------+
| Unaffiliated | | JPY54,235 | | JPY29,705 | | JPY11,817 | | JPY95,757 | | - | | JPY95,757 |
| customers | | | | | | | | | | | | |
+---------------------------+-+-------------+-+-------------+-+------------+-+------------+-+--------------+-+--------------+
| Inter-segment | | 385 | | 182 | | 3,570 | | 4,137 | | JPY(4,137) | | - |
+---------------------------+-+-------------+-+-------------+-+------------+-+------------+-+--------------+-+--------------+
| Total | | 54,620 | | 29,887 | | 15,387 | | 99,894 | | (4,137) | | 95,757 |
+---------------------------+-+-------------+-+-------------+-+------------+-+------------+-+--------------+-+--------------+
| Operating income | | JPY(8,693) | | JPY1,020 | | JPY(1,615) | | JPY(9,288) | | JPY532 | | JPY(8,756) |
| (loss) | | | | | | | | | | | | |
+---------------------------+-+-------------+-+-------------+-+------------+-+------------+-+--------------+-+--------------+
Note: Business segments are determined according to type of products and
similarity of sales markets.
Notes:
1. Effective from fiscal 2010, "Other operating revenue" (Royalty revenue),
which was previously composed of "Operating revenue" with "Net sales," has been
included in "Net sales" because of its reduced importance to consolidated
business results. Accordingly, effective from this fiscal year, only "Net sales"
has been reported. Figures for the previous year have been reclassified to
conform to this presentation.
2. The Company's business is classified into three segments: "Car Electronics,"
"Home Electronics," and "Others." Principal products and services included in
each segment are as follows:
Car Electronics:
car navigation systems, car stereos, car AV systems and car
speakers
Home Electronics:
audio systems, audio components, DJ equipment, equipment
for cable-TV systems, Blu-ray Disc players, Blu-ray Disc recorders, Blu-ray Disc
drives, DVD players, DVD recorders, DVD drives and Plasma displays
Others:
factory automation systems, speaker units, electronics devices and
parts, organic light-emitting diode displays, telephones, AV accessories,
business-use AV systems and licensing of patents related to laser optical disc
technologies
Note relating to going concern assumption:
Not applicable.
This information is provided by RNS
The company news service from the London Stock Exchange
END
QRFUUUGGRUPBGUQ
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