(Please forward this message to all of your group members.)
Kotani Mail November 11, 2016
To All Pioneer Members
Dear Friends,
Yesterday, Pioneer announced financial results for its FY2017 second quarter and the first six months, ended September 30, 2016.
The announcement outline is as follows;
For the second quarter of FY2017, consolidated net sales declined 16% year on year, to 95.1 billion yen, mainly from the negative effects of the Japanese yen’s appreciation.
Operating income was 1.1 billion yen, also decrease year on year, reflecting a decrease in sales and unfavorable currency rates, despite an improvement in the cost of sales ratio.
Net loss was 0.3 billion yen, compared with a net profit of 0.5 billion yen for the second quarter of FY2016, mainly due to the decrease in operating income.
As a result, the first half net sales amounted to 190.4 billion yen and operating profit was 1.5 billion yen, both declined from the same period last year. Positive factor is that we made an improvement in the cost of sales ratio, since our cost down activities created effects. Especially car navigation systems for consumer markets turned into profit thanks to the cost reduction efforts including combined product development and modular design methods.
Net income amounted to 1.0 billion yen, turnaround from 2.0 billion yen loss a year-earlier, mainly by increased currency exchange gain.
Going forward, after the consideration of latest currency movements and market trend for coming periods, we have decided to maintain previously announced sales forecasts in August for whole year. Net sales forecast remains 400 billion yen. Regarding incomes, we remain the operating income forecast of 8 billion yen and the net income of 1 billion yen respectively unchanged from the original announcement since we are progressing as planned.
At the earnings announcement, as a topic, I showed our new "Multi-Drive Assist Unit" which was introduced into Japanese market this September. This model is equipped with a variety of advanced driving assistance functions that alert and warn a driver with the use of sound and images. I believe this is a good appeal of our advanced consumer-market business, contributing to both car’s reliability and safety, and comfortable driving.
The above were the yesterday's announcement points.
For the first half of this fiscal year, although our sales and operating income were decreased from last year’s level under the tough market situation, we did achieve 1.5 billion yen operating income target, especially thanks to the cost down activities. Again I appreciate everybody’s efforts for better performance in many fields.
From the third quarter onward, we still foresee uncertainty in currency rates fluctuation and recovery speed in emerging market economies, although we can see some improvements started in some areas. Incidents like the pass away of Thailand king and the USA president change may also influence world economy. Let’s watch carefully about our environment changes, but maintain the current good momentum of our activities and conquer the difficulties to achieve FY2017 sales and profit target.
As I mentioned occasionally, to actualize the medium-term plan and enjoy the results five years after, FY2017 and FY2018 are very critical and significant years for us. When we achieve the projected tasks and numerical targets in these two years, we are sure to be led to the good direction for the successful future, supported by already received big business from FY2019.
Let’s challenge ourselves for the future!
With best regards,
Susumu Kotani
President & CEO