Despite a 6.2 per cent rise in its operating revenues, Pioneer has emerged from the 2005 financial year looking (flatscreen) war weary.
The Corporation has posted an operating loss of 16,409 million Yen, compared to an operating income of 691 million the previous year. But, its net loss is a massive 84,986 million Yen compared to a loss of 8,789 a year ago.
The company’s home electronics business increased 9.9 per cent year on year to 354,690 million Yen, yet plasma sales fell by 30 per cent. It lost sales in its home market, but grew its screen business overseas.
While sales of its DJ kit grew, DVD recorders, DVD players, and stereo equipment all tanked. Overall, the operating loss in its electronics biz was 35,184million Yen, up from a loss of 24,628million Yen in 2005.
Price erosion in both the plasma and DVD recorder markets was largely to blame. At least its car audio operation appears to have wheels.
The company says that it will “strive to rebuild” its brand and improve operating results by “focussing on the innovative, high-quality and value added products that define Pioneer.”
The company has pledged to bolster its plasma efforts, by reducing its dependence on OEM business (wherein it supplies panels to other manufacturers) and concentrating on its own products.
It will also innovate with 1080p displays. Although a reduction in its DVD recorder line-up is inevitable, the brand intends to invest heavily in Blu-ray drives for PCs.