It continues to be a bumpy ride for JVC. Extensive cost-cutting has improved its profitability, but according to the company’s first half year financials, its consumer electronics business remains under pressure.
JVC’s ce business has declined year-on-year in Japan. Sales of hard disk camcorders are up, but it not enough to offset poor LCD TV sales and the junking of its DVD recorder division.
In North America, sales of D-ILA hybrid projection TVs have improved but not enough to offset a major decline in sales of CRT televisions.
Europe paints a brighter picture: sales of LCD televisions and camcorders are up significantly year-on-year.
The company’s total consumer electronics sales were 272.3 billion yen in the first half, down 5.4 percent year-on-year from 288.0 billion yen. Consolidated total sales decreased 4 percent to 371.2 billion yen, but operating income increased 3 billion to a loss of 684 million yen.
During the first half of 2007 consolidated net sales in Japan were 113.4 billion yen, down 10.0 percent year-on-year by 12.5 billion yen. Although sales were up in the software and media segment, it was offset by those sales declines in the Consumer Electronics and Professional Electronics segments.
Outside of Japan, net sales were down in the Americas but up year-on-year in Europe and Asia. Consolidated net sales outside of Japan were 257.8 billion yen, down 1.3 percent year-on-year by 3.4 billion yen. As a result, total sales were 371.2 billion yen in the first half, down 4.1 percent year-on-year by 16.0 billion yen.
The company’s profit and loss statement reveals an overall operating loss of 600 million yen, a 3.0 billion yen improvement year-on-year.
Says JVC “We expect the business environment to remain difficult, considering heightened competition in the domestic and international markets for digital appliances, the impact of runaway oil prices, growing concerns for economic slow downs in Europe and the US Within this context, JVC will attempt to increase sales mainly through the company’s ‘Only One’ strategy of producing niche-leading products.’