30th Oct 2008 12:30
For Immediate Release
October 30, 2008
Pioneer Announces Business Results for 2Q Fiscal 2009
TOKYO - Pioneer Corporation today announced its consolidated second-quarter and semiannual business results for the periods ended September 30, 2008.
Consolidated Financial Highlights
|
(In millions of yen except per share information) |
||||||||||||
|
Three monthsended September 30 |
Six monthsended September 30 |
|||||||||||
|
2008 |
2007 |
% to prior year |
2008 |
2007 |
% to prior year |
|||||||
|
Operating revenue |
¥166,076 |
¥200,520 |
82.8% |
¥327,042 |
¥383,161 |
85.4% |
||||||
|
Operating income (loss) |
(6,872) |
939 |
- |
(13,091) |
2,262 |
- |
||||||
|
Income (loss) before income taxes |
(31,201) |
1,460 |
- |
(36,877) |
17,645 |
- |
||||||
|
Net income (loss) |
¥(45,234) |
¥(2,395) |
-% |
¥(52,978) |
¥9,936 |
-% |
||||||
|
Net income (loss) per share: |
||||||||||||
|
Basic |
¥(220.64) |
¥(13.73) |
¥(258.41) |
¥56.97 |
||||||||
|
Diluted |
¥(220.64) |
¥(13.73) |
¥(258.41) |
¥51.65 |
||||||||
Consolidated Business Results
For the second quarter of fiscal 2009, the three months ended September 30, 2008, consolidated operating revenue decreased 17.2% from the second quarter of fiscal 2008 to ¥166,076 million (US$1,596.9 million), mainly due to lower sales of plasma displays, DVD drives and car audio products.
Pioneer recorded an operating loss of ¥6,872 million (US$66.1 million), compared with operating income of ¥939 million in the second quarter of fiscal 2008, due to the lower operating revenue and deterioration in the gross profit margin. In addition, Pioneer recorded business restructuring expenses of ¥15,616 million (US$150.2 million) mainly for implementing an early retirement program, and a write-down of marketable securities. Higher income taxes were also recorded following an evaluation of deferred tax assets. Consequently, the net loss was ¥45,234 million (US$434.9 million), compared with ¥2,395 million in the second quarter of fiscal 2008.
During the second quarter of fiscal 2009, the average value of the Japanese yen appreciated 9.5% against the U.S. dollar and remained mostly unchanged against the euro, compared with the second quarter of fiscal 2008.
Car Electronics operating revenue decreased 7.7% year on year to ¥85,546 million (US$822.6 million) due to lower overall sales of car audio products, despite higher overall car navigation system sales. In car navigation systems, consumer-market sales rose year on year, mainly because of higher sales in Europe. OEM sales also increased due to higher sales in China and Japan, despite lower sales in North America. In car audio products, consumer-market sales decreased because of lower sales in North America and Europe due to contracting markets and economic recession. OEM sales also declined due to lower sales in North America and Japan, despite higher sales in China. Total OEM sales in this segment accounted for approximately 40% of Car Electronics operating revenue, compared with approximately 38% in the second quarter of fiscal 2008.
In terms of geographic operating revenue, operating revenue in Japan was mostly the same as in the second quarter of fiscal 2008 at ¥28,428 million (US$273.3 million) while overseas operating revenue decreased 11.2% year on year to ¥57,118 million (US$549.2 million).
Operating income in this segment decreased 82.2% year on year to ¥1,072 million (US$10.3 million). This reflected lower car audio product sales, and deterioration in the gross profit margin due to a drop in production volume.
Home Electronics operating revenue decreased 30.0% year on year to ¥62,589 million (US$601.8 million). This largely reflected lower overseas plasma display sales volume, as well as lower DVD drive sales. Sales of display products accounted for approximately 40% of Home Electronics operating revenue, compared with approximately 41% in the second quarter of fiscal 2008.
In terms of geographic operating revenue, operating revenue in Japan declined 36.4% year on year to ¥6,747 million (US$64.9 million), while overseas operating revenue decreased 29.2% to ¥55,842 million (US$536.9 million).
The operating loss in this segment widened from ¥4,105 million in the second quarter of fiscal 2008 to ¥6,953 million (US$66.9 million). This was chiefly due to lower plasma display and DVD drive sales, and erosion in the gross profit margin for these products.
In the Others segment, operating revenue decreased 2.2% year on year to ¥17,941 million (US$172.5 million) due to lower sales of organic light-emitting diode displays.
In terms of geographic operating revenue, operating revenue in Japan rose 1.4% year on year to ¥10,668 million (US$102.6 million), while overseas operating revenue decreased 7.1% year on year to ¥7,273 million (US$69.9 million).
Operating income in this segment rose 64.1% year on year to ¥443 million (US$4.3 million), because of improved profitability in speaker units for cellular phones.
For the first half of fiscal 2009, the six months ended September 30, 2008, consolidated operating revenue decreased 14.6% to ¥327,042 million (US$3,144.6 million). Pioneer recorded an operating loss of ¥13,091 million (US$125.9 million) compared with operating income of ¥2,262 million in the first half of fiscal 2008. It also posted a net loss of ¥52,978 million (US$509.4 million) compared with net income of ¥9,936 million in the same period of fiscal 2008, which included a gain on sales of all land and buildings at the Tokorozawa Plant and some at the Omori Plant.
Notes:
1.Operating income (loss) in each business segment represents operating income (loss) before elimination of intersegment transactions.
2.Effective from the first quarter of fiscal 2009, the patent licensing business, which was previously classified as an independent business segment, has been included in the "Others" segment because of its reduced importance to consolidated business results. Figures for the corresponding period of fiscal 2008 have been reclassified.
Consolidated Financial Position
Total assets as of September 30, 2008 were ¥571,547 million (US$5,495.6 million), a decrease of ¥4,569 million from March 31, 2008. This mainly reflected decreases in cash and cash equivalents, investments and long-term receivables, and long-term deferred tax assets, despite an increase in inventories. Inventories rose ¥21,696 million to ¥125,864 million (US$1,210.2 million), mainly due to the stockpiling of new plasma display models and consumer-market car navigation systems ahead of the launch of new products. On the other hand, investments and long-term receivables decreased ¥8,397 million to ¥28,000 million (US$269.2 million), mainly due to falling share prices. Long-term deferred tax assets declined ¥8,997 million to ¥30,918 million (US$297.3 million) in line with an increase in the valuation allowance.
Total liabilities as of September 30, 2008 were ¥375,250 million (US$3,608.2 million), up ¥47,891 million from March 31, 2008. This mainly reflected increases in short-term borrowings and accrued liabilities. Short-term borrowings rose ¥41,750 million to ¥56,562 million (US$543.9 million). Accrued liabilities increased ¥9,999 million to ¥90,631 million (US$871.5 million), primarily due to provisions for special retirement benefits associated with the implementation of early retirement programs.
Total shareholders' equity was ¥194,850 million (US$1,873.6 million), a decrease of ¥52,545 million from March 31, 2008. This mainly reflected a drop of ¥53,053 million in retained earnings.
Cash Flows
During the first half of fiscal 2009, operating activities used net cash of ¥25,642 million (US$246.6 million). The main factors reducing cash were a net loss of ¥52,978 million (US$509.4 million) and an increase in inventories of ¥23,255 million (US$223.6 million). These factors outweighed the addback of non-cash expenses, namely depreciation and amortization of ¥13,480 million (US$129.6 million), deferred taxes of ¥12,050 million (US$115.9 million), and an increase in other accrued liabilities of ¥10,829 million (US$104.1 million), among other factors increasing cash. Investing activities used net cash of ¥15,264 million (US$146.8 million), mainly for capital expenditures in the Car Electronics business. Financing activities provided net cash of ¥30,869 million (US$296.8 million), mainly through an increase in short-term borrowings.
Consequently, cash and cash equivalents at September 30, 2008 were ¥72,431 million (US$696.5 million), down ¥8,749 million from March 31, 2008.
Business Forecasts for Fiscal 2009
We revised our consolidated business forecasts for fiscal 2009, ending March 31, 2009, which were announced on May 13, 2008, as follows:
|
(In millions of yen) |
||||||||
|
Revised projections for fiscal 2009 (A) |
Previous projections for fiscal 2009 (B) |
Changes (A - B) |
Results for fiscal 2008 |
|||||
|
Operating revenue |
¥700,000 |
¥780,000 |
¥(80,000) |
¥774,477 |
||||
|
Operating income (loss) |
(17,000) |
7,000 |
(24,000) |
10,907 |
||||
|
Income (loss) before income taxes |
(54,000) |
(7,500) |
(46,500) |
3,434 |
||||
|
Net loss |
¥(78,000) |
¥(19,000) |
¥(59,000) |
¥(17,992) |
||||
We have lowered our operating revenue forecast from ¥780 billion to ¥700 billion. This is mainly because the Car Electronics business and Home Electronics business are both expected to post lower-than-projected operating revenue due to intensifying competition involving our core products, as well as the impact of economic recession and the yen's appreciation.
We have revised our operating income forecast from ¥7 billion to a projected operating loss of ¥17 billion based on expectations of worsening profitability due to lower sales and the impact of the yen's appreciation.
Furthermore, we have decided to carry out additional business restructuring measures in the display business and measures for improving profitability in the Home Electronics business, among other actions. This means that projected business restructuring expenses for fiscal 2009 will increase from ¥15 billion to ¥29 billion. In addition, we expect to book a write-down of marketable securities. Consequently, we have revised our forecast for the loss before income taxes from ¥7.5 billion to ¥54 billion. We have also revised the projected net loss from ¥19 billion to ¥78 billion based on a projected increase in income taxes associated with the valuation of deferred tax assets.
We are assuming an average yen-U.S. dollar exchange rate of ¥100, ¥5 higher than previously, and a yen-euro exchange rate of ¥130, ¥25 higher than before, for the revised projections.
Basic Management Policies and Issues to Be Addressed
Pioneer seeks to create new value for customers by offering innovative, high-quality, and high value-added electronics products, with the aim of realizing the Pioneer Group's philosophy of "Move the Heart and Touch the Soul" with more people around the world. Based on this group philosophy, Pioneer has formulated a group vision that serves as a reference point for the Group's business activities, as follows: "To become a company that encourages all its members to work as a team, with everyone customer-focused, integrating each one's professionalism in pursuing innovations one after another."
The overall economic outlook is uncertain given current economic conditions. The economy is experiencing a financial crisis highlighted by tumbling share prices worldwide, unstable foreign exchange markets and other developments triggered by the U.S. sub-prime loan issue. At the same time, volatile crude oil prices and soaring raw material costs are driving up the costs of corporate business activities and weakening consumer spending.
In addition to these difficult economic conditions, Pioneer continues to face an extremely challenging business environment due to fierce competition involving its core products.
Pioneer has established medium-term management targets of consolidated operating revenue of ¥900 billion and operating income of ¥37 billion in fiscal 2011, the year ending March 31, 2011. To this end, the Company had planned to restore the Home Electronics business to profitability in fiscal 2010 by implementing measures for restructuring the display business and improving profitability in the Home Electronics business as a whole. However, we are currently reviewing our medium-term management targets because their achievement has become extremely difficult in light of intensifying competition and sharply deteriorating business conditions highlighted by falling share prices and other developments worldwide. Pioneer plans to announce its new medium-term management targets along with concrete measures by February 2009, after closely examining the year-end shopping season and other market conditions as well as economic developments going forward.
On May 13, 2008, Pioneer announced measures for restructuring the display business and improving profitability in the Home Electronics business as a whole.
Pioneer is successively terminating in-house production of plasma display panels as planned. Pioneer Display Products Corporation (DPC) Yamanashi Plant has already ended production and was closed at the end of September 2008. Going forward, we plan to terminate plasma display panel production at Pioneer Plasma Display Corporation (PPD) Kagoshima Plant and DPC Shizuoka Plant in November 2008 and February 2009, respectively.
Pioneer continues to consider ways to utilize these facilities after panel production ends. We are currently choosing a buyer and conducting negotiations on the sale of land and buildings at DPC Yamanashi Plant. Elsewhere, Pioneer has reached a basic agreement on transferring PPD Kagoshima Plant to Field Emission Technologies Inc. and is proceeding with negotiations. In regard to DPC Shizuoka Plant, Pioneer plans to convert the plant into a center for Home Electronics product manufacturing, including plasma display assembly, and aftersales services, in conjunction with downsizing operations.
Furthermore, Pioneer has sought applicants for early retirement through an incentive-based early retirement plan for administrative and sales divisions in Japan, and a special early retirement program has been applied to DPC Yamanashi Plant. These measures resulted in the retirement of 309 and 205 employees, respectively, as of September 30, 2008.
Overseas, with the view to closing its plasma display production facilities in the U.S. and the U.K. as an additional measure, and overhauling the European sales structure for the Home Electronics business, Pioneer is conducting discussions with labor unions in each region.
The actions above, as well as additional measures, are expected to yield projected cost savings of ¥26 billion from the second half of fiscal 2009.
Pioneer will continue working to restore its business performance and generate stable earnings by ensuring that it fully implements the above initiatives. At the same time, we will step up measures to achieve steady growth in the Car Electronics business and restore profitability in the Home Electronics business as a whole, while focusing on the factory automation (FA) systems business and electronic devices and parts business, both of which leverage our extensive technologies.
In the Car Electronics business, Pioneer is working to achieve growth in sales of consumer-market car navigation systems driven by portable navigation devices with telematics functions, and to reduce costs by boosting development efficiency, in order to improve profitability in consumer-market car navigation systems. We are also trying to develop new products offering new value propositions with the aim of expanding our business domains.
In OEM car navigation systems, we will concentrate on winning contracts for assembly line products for automakers and the dealer options market in Japan.
In car audio products, we will work to maintain our share of contracting consumer markets in Japan, North America and Europe, and to respond to market expansion in emerging economies, as we strive to shift our center of gravity to car audio/video products. Through these measures, Pioneer aims to achieve business expansion and better profitability in both consumer markets and the OEM field.
In the Home Electronics business, Pioneer is implementing measures for improving profitability and restructuring the display business.
In the display business, from summer 2009, Pioneer plans to produce plasma displays with plasma display panels supplied by Panasonic Corporation that incorporate Pioneer's proprietary technologies. Furthermore, Pioneer will conduct development with the view to incorporating its own technologies into LCD TVs procured from Sharp Corporation.
In the optical disc business, Pioneer will focus on reinforcing its development capabilities, while looking into cooperative ties with Sharp, in order to establish a strong presence in Blu-ray Disc products, which are rapidly penetrating the market.
In the audio business, Pioneer plans to step up measures to raise its market share.
Additionally, Pioneer will take new initiatives in the area of "sound." Pioneer will offer new products and value propositions that combine its specialization in "sound" with design and cultural elements. We will focus on all aspects of "sound" in people's lives, without confining our activities to existing businesses or technologies.
In the speaker business, Pioneer is working to raise efficiency and expand business by concentrating at Tohoku Pioneer Corporation speaker development and production ranging from car speakers and home-use speakers to speaker units for cellular phones and TVs.
In the FA systems business and electronic devices and parts business, Pioneer seeks to expand its business domains and scope of operations by responding to demand from outside the electronics industry through the application of highly versatile technologies developed over the years. We will focus on FA systems such as automotive and precision components production equipment, semiconductors and other electronic devices and parts.
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 yen and the U.S. dollar, 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 audio, video and car electronics. 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 ¥104=US$1.00, the approximate rate prevailing on September 30, 2008.
Attached are consolidated financial statements for the three months and the six months ended September 30, 2008.
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: [email protected]
IR Website: http://pioneer.jp/ir-e/
(1) CONSOLIDATED BALANCE SHEETS
|
(In millions of yen) |
||||||||||
|
June 30 |
March 31 |
|||||||||
|
2008 |
2007 |
Increase (Decrease) |
2008 |
Increase (Decrease) |
||||||
|
ASSETS |
||||||||||
|
Current assets: |
||||||||||
|
Cash and cash equivalents |
¥79,384 |
¥86,506 |
¥(7,122) |
¥81,180 |
¥(1,796) |
|||||
|
Trade receivables, less allowance |
107,325 |
131,186 |
(23,861) |
93,068 |
14,257 |
|||||
|
Inventories |
122,963 |
131,114 |
(8,151) |
104,168 |
18,795 |
|||||
|
Other current assets |
73,666 |
77,674 |
(4,008) |
70,821 |
2,845 |
|||||
|
Total current assets |
383,338 |
426,480 |
(43,142) |
349,237 |
34,101 |
|||||
|
Investments and long-term receivables |
36,913 |
28,146 |
8,767 |
36,397 |
516 |
|||||
|
Property, plant and equipment, less depreciation |
124,356 |
146,191 |
(21,835) |
122,752 |
1,604 |
|||||
|
Intangible assets |
16,929 |
18,824 |
(1,895) |
17,738 |
(809) |
|||||
|
Other assets |
51,684 |
47,414 |
4,270 |
49,992 |
1,692 |
|||||
|
Total assets |
¥613,220 |
¥667,055 |
¥(53,835) |
¥576,116 |
¥37,104 |
|||||
|
LIABILITIES, MINORITY INTERESTS AND SHAREHOLDERS' EQUITY |
||||||||||
|
Current liabilities: |
||||||||||
|
Short-term borrowings |
¥48,000 |
¥38,368 |
¥9,632 |
¥14,812 |
¥33,188 |
|||||
|
Current portion of long-term debt |
13,269 |
5,731 |
7,538 |
13,672 |
(403) |
|||||
|
Trade payables |
101,849 |
119,062 |
(17,213) |
86,195 |
15,654 |
|||||
|
Other current liabilities |
92,616 |
99,964 |
(7,348) |
107,328 |
(14,712) |
|||||
|
Total current liabilities |
255,734 |
263,125 |
(7,391) |
222,007 |
33,727 |
|||||
|
Long-term debt |
71,227 |
85,021 |
(13,794) |
72,041 |
(814) |
|||||
|
Other long-term liabilities |
33,736 |
23,945 |
9,791 |
33,311 |
425 |
|||||
|
Total liabilities |
360,697 |
372,091 |
(11,394) |
327,359 |
33,338 |
|||||
|
Minority interests |
1,455 |
2,479 |
(1,024) |
1,362 |
93 |
|||||
|
Shareholders' equity: |
||||||||||
|
Common stock |
69,824 |
49,049 |
20,775 |
69,824 |
- |
|||||
|
Capital surplus |
103,578 |
82,995 |
20,583 |
103,578 |
- |
|||||
|
Retained earnings |
137,551 |
177,652 |
(40,101) |
145,295 |
(7,744) |
|||||
|
Accumulated other comprehensive loss |
(48,761) |
(4,756) |
(44,005) |
(60,178) |
11,417 |
|||||
|
Treasury stock |
(11,124) |
(12,455) |
1,331 |
(11,124) |
- |
|||||
|
Total shareholders' equity |
251,068 |
292,485 |
(41,417) |
247,395 |
3,673 |
|||||
|
Total liabilities, minority interests and shareholders' equity |
¥613,220 |
¥667,055 |
¥(53,835) |
¥576,116 |
¥37,104 |
|||||
|
Breakdown of accumulated other comprehensive loss: |
||||||||||
|
Pension liability adjustments |
¥(12,264) |
¥(5,099) |
¥(7,165) |
¥(12,279) |
¥15 |
|||||
|
Net unrealized gains on securities |
2,442 |
8,087 |
(5,645) |
1,943 |
499 |
|||||
|
Foreign currency translation adjustments |
(38,939) |
(7,744) |
(31,195) |
(49,842) |
10,903 |
|||||
|
Total accumulated other comprehensive loss |
¥(48,761) |
¥(4,756) |
¥(44,005) |
¥(60,178) |
¥11,417 |
|||||
(2) CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In millions of yen) |
||||||
|
Three months ended June 30 |
||||||
|
2008 |
2007 |
% to prior year |
||||
|
Operating revenue: |
||||||
|
Net sales |
¥160,907 |
¥182,534 |
88.2% |
|||
|
Royalty revenue |
59 |
107 |
55.1 |
|||
|
Total operating revenue |
160,966 |
182,641 |
88.1 |
|||
|
Operating costs and expenses: |
||||||
|
Cost of sales |
129,019 |
138,733 |
93.0 |
|||
|
Selling, general and administrative expenses |
38,166 |
42,585 |
89.6 |
|||
|
Total operating costs and expenses |
167,185 |
181,318 |
92.2 |
|||
|
Operating income (loss) |
(6,219) |
1,323 |
- |
|||
|
Other income (expenses): |
||||||
|
Interest income |
1,035 |
1,790 |
57.8 |
|||
|
Foreign exchange gain |
223 |
429 |
52.0 |
|||
|
Interest expense |
(415) |
(543) |
76.4 |
|||
|
Other-net |
(300) |
13,186 |
- |
|||
|
Total other income |
543 |
14,862 |
3.7 |
|||
|
Income (loss) before income taxes |
(5,676) |
16,185 |
- |
|||
|
Income taxes |
1,959 |
3,651 |
53.7 |
|||
|
Minority interest in earnings of subsidiaries |
(48) |
(92) |
52.2 |
|||
|
Equity in losses of affiliated companies |
(61) |
(111) |
55.0 |
|||
|
Net income (loss) |
¥(7,744) |
¥12,331 |
-% |
|||
(3) CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In millions of yen) |
||||
|
Three months ended June 30 |
||||
|
2008 |
2007 |
|||
|
I. Cash flows from operating activities: |
||||
|
Net income (loss) |
¥(7,744) |
¥12,331 |
||
|
Depreciation and amortization |
6,930 |
8,717 |
||
|
Gain on sale and disposal of fixed assets, net |
(322) |
(12,923) |
||
|
Increase in trade receivables |
(10,618) |
(9,389) |
||
|
Increase in inventories |
(14,123) |
(21,702) |
||
|
Increase in trade payables |
13,386 |
23,919 |
||
|
Decrease in other accrued liabilities |
(10,064) |
(9,445) |
||
|
Other |
(5,905) |
(5,688) |
||
|
Net cash used in operating activities |
(28,460) |
(14,180) |
||
|
II. Cash flows from investing activities: |
||||
|
Payment for purchase of fixed assets |
(8,890) |
(15,460) |
||
|
Payment for purchase of shares of consolidated subsidiaries |
- |
(13,704) |
||
|
Other |
593 |
1,511 |
||
|
Net cash used in investing activities |
(8,297) |
(27,653) |
||
|
III. Cash flows from financing activities: |
||||
|
Increase in short-term borrowings and long-term debt |
31,293 |
24,699 |
||
|
Dividends paid |
(513) |
(872) |
||
|
Other |
(156) |
(879) |
||
|
Net cash provided by financing activities |
30,624 |
22,948 |
||
|
Effect of exchange rate changes on cash and cash equivalents |
4,337 |
3,571 |
||
|
Net decrease in cash and cash equivalents |
(1,796) |
(15,314) |
||
|
Cash and cash equivalents, beginning of period |
81,180 |
101,820 |
||
|
Cash and cash equivalents, end of period |
¥79,384 |
¥86,506 |
||
|
Free cash flows (I + II) |
¥(36,757) |
¥(41,833) |
||
(4) OPERATING REVENUE BY SEGMENT
|
(In millions of yen) |
||||||||||
|
Three months ended June 30 |
||||||||||
|
2008 |
2007 |
% to |
||||||||
|
Amount |
% to total |
Amount |
% to total |
prior year |
||||||
|
Domestic |
¥34,892 |
21.7% |
¥32,458 |
17.8% |
107.5% |
|||||
|
Overseas |
53,203 |
33.0 |
64,559 |
35.3 |
82.4 |
|||||
|
Car Electronics |
88,095 |
54.7 |
97,017 |
53.1 |
90.8 |
|||||
|
Domestic |
6,628 |
4.1 |
12,763 |
7.0 |
51.9 |
|||||
|
Overseas |
50,715 |
31.5 |
56,668 |
31.0 |
89.5 |
|||||
|
Home Electronics |
57,343 |
35.6 |
69,431 |
38.0 |
82.6 |
|||||
|
Domestic |
10,369 |
6.4 |
10,355 |
5.6 |
100.1 |
|||||
|
Overseas |
5,159 |
3.3 |
5,838 |
3.3 |
88.4 |
|||||
|
Others |
15,528 |
9.7 |
16,193 |
8.9 |
95.9 |
|||||
|
Domestic |
51,889 |
32.2 |
55,576 |
30.4 |
93.4 |
|||||
|
Overseas |
109,077 |
67.8 |
127,065 |
69.6 |
85.8 |
|||||
|
Total |
¥160,966 |
100.0% |
¥182,641 |
100.0% |
88.1% |
|||||
(5) SEGMENT INFORMATION
The following segment information is prepared pursuant to the regulations under the Financial Instruments and Exchange Law of Japan.
|
(In millions of yen) |
||||||||||||
|
Three months ended June 30 |
||||||||||||
|
2008 |
2007 |
% to prior year |
||||||||||
|
OperatingRevenue |
OperatingIncome (Loss) |
OperatingRevenue |
OperatingIncome (Loss) |
OperatingRevenue |
OperatingIncome (Loss) |
|||||||
|
Car Electronics |
¥88,564 |
¥1,704 |
¥97,511 |
¥7,609 |
90.8% |
22.4% |
||||||
|
Home Electronics |
57,456 |
(7,394) |
69,592 |
(5,437) |
82.6 |
- |
||||||
|
Others |
23,998 |
(264) |
24,812 |
(750) |
96.7 |
- |
||||||
|
Total |
170,018 |
(5,954) |
191,915 |
1,422 |
88.6 |
- |
||||||
|
Corporate and Eliminations |
(9,052) |
(265) |
(9,274) |
(99) |
- |
- |
||||||
|
Consolidated |
¥160,966 |
¥(6,219) |
¥182,641 |
¥1,323 |
88.1% |
-% |
||||||
Notes:
1.The Company's consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, except for the disclosure of segment information.
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:plasma displays, DVD recorders, DVD players, DVD drives, Blu-ray Disc players, Blu-ray Disc drives, audio systems, audio components, DJ equipment and equipment for cable TV systems
Others:organic light-emitting diode displays, factory automation systems, speaker units, electronics devices and parts, telephones, AV accessories, business-use AV systems and licensing of patents related to laser optical disc technologies
3.Effective from the first quarter of fiscal 2009, the patent licensing business, which was previously classified as an independent business segment, has been included in the "Others" segment because of its reduced importance to consolidated business results. Figures for the corresponding period of fiscal 2008 have been reclassified.
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