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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13A-16 OR 15D-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
PURSUANT TO RULE 13A-16 OR 15D-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of October, 2005
Commission File Number 1-7616
PIONEER CORPORATION
(Translation of registrant’s name into English)
4-1, MEGURO 1-CHOME, MEGURO-KU, TOKYO 153-8654, JAPAN
(Address of principal executive offices)
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F:
Form 20-Fþ Form 40-Fo
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):o
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):o
Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yeso Noþ
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-
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SIGNATURES | ||||||||
Pioneer Announces Second-Quarter and Semiannual Results for Fiscal 2006 |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
PIONEER CORPORATION | ||||||
(Registrant) | ||||||
Date: October 31, 2005 | ||||||
By | /s/ Kaneo Ito | |||||
Kaneo Ito | ||||||
President and Representative Director |
This report on Form 6-K contains the followings:
1. | The announcement released by the Company to the press in Japan dated October 31 2005, concerning its consolidated second-quarter and semiannual business results, and non-consolidated semiannual business results, for the period ended September 30, 2005. |
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For Immediate Release
October 31, 2005
October 31, 2005
Pioneer Announces Second-Quarter and Semiannual Results for Fiscal 2006
TOKYO — Pioneer Corporation today announced its consolidated second-quarter and semiannual business results, and non-consolidated semiannual business results, for the period ended September 30, 2005.
Consolidated Financial Highlights
(In millions of yen except per share information) | ||||||||||||||||||||||||
Three months | Six months | |||||||||||||||||||||||
ended September 30 | ended September 30 | |||||||||||||||||||||||
2005 | 2004 | % to prior year | 2005 | 2004 | % to prior year | |||||||||||||||||||
Operating revenue | ¥ | 185,715 | ¥ | 181,560 | 102.3 | % | ¥ | 349,898 | ¥ | 345,047 | 101.4 | % | ||||||||||||
Operating income (loss) | (7,519 | ) | 8,386 | — | (16,388 | ) | 13,398 | — | ||||||||||||||||
Income (loss) before income taxes | (5,345 | ) | 8,199 | — | (11,954 | ) | 12,438 | — | ||||||||||||||||
Net income (loss) | ¥ | (6,918 | ) | ¥ | 3,312 | — | ¥ | (12,261 | ) | ¥ | 4,809 | — | ||||||||||||
Net income (loss) per share: | ||||||||||||||||||||||||
Basic | ¥ | (39.66 | ) | ¥ | 18.88 | ¥ | (70.29 | ) | ¥ | 27.41 | ||||||||||||||
Diluted | ¥ | (39.66 | ) | ¥ | 16.99 | ¥ | (70.29 | ) | ¥ | 24.45 |
Note: | Effective from fiscal 2005 year-end presentation, the Company classified gains and losses on sale and disposal of fixed assets, which were previously included in “Operating costs and expenses,” into “Other income (expenses).” Previously reported amounts have been reclassified accordingly. |
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Consolidated Business Results
The second quarter of fiscal 2006, ended September 30, 2005, resulted in consolidated operating revenue of ¥185,715 million (US$1,643.5 million), a 2.3% increase from the corresponding period in the previous year. This mainly reflects increased sales of plasma displays, which compensated for decreased sales of DVD products. Despite an increase in operating revenue, operating loss of ¥7,519 million (US$66.5 million) was posted during the period, compared to operating income of ¥8,386 million in the corresponding period of the previous year. This loss was principally caused by lower market prices for our main products due to more severe competition, resulting in decrease of gross profit margins. As a result, net loss was ¥6,918 million (US$61.2 million) compared with net income of ¥3,312 million posted in the corresponding period of the previous year. The average value of the yen during the period was down 1.2% against the U.S. dollar and down 1.0% against the euro from the corresponding period in the previous year.
Home Electronicssales increased 6.6% from the corresponding period in the previous year to ¥81,753 million (US$723.5 million), as plasma display sales increased, despite a decrease in sales of DVD products. In Japan, sales decreased 15.9% to ¥19,028 million (US$168.4 million) mainly due to a decrease in sales of DVD recorders and DVD players. Overseas sales increased 16.0% to ¥62,725 million (US$555.1 million), due to a rise in sales of plasma displays worldwide, and of DVD drives for PCs in Asia, despite the decline in sales of DVD drives for PCs in Europe and North America and the discontinuation of sales of cable TV set-top boxes in North America.
This business segment recorded operating loss of ¥13,140 million (US$116.3 million), compared to operating income of ¥32 million in the corresponding period of the previous year. Gross profit margins for plasma displays and DVD products dropped due to lower market prices.
Car Electronicssales amounted to ¥78,140 million (US$691.5 million), up 4.5% over the corresponding period in the previous year. Car audio product sales were good, although car navigation system sales decreased, due to lower sales in Japan of these systems to automobile manufacturers. In Japan, sales decreased 10.9% to ¥26,236 million (US$232.2 million), due to a decrease in sales of car navigation systems to automobile manufacturers, which reflected a lack of new car model launches in comparison to the corresponding period of the previous year, despite an increase in sales of car navigation systems for the consumer market. Overseas sales increased 14.5% to ¥51,904 million (US$459.3 million), due to growth in sales of car audio products and car navigation systems to automobile manufacturers in North America, and of car audio products for the consumer market in Central and South America and Europe.
Operating income decreased 37.8% to ¥2,896 million (US$25.6 million) over the corresponding period of the previous year, mainly as a result of the above-mentioned decrease in sales of car navigation systems.
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Royalty revenue fromPatent Licensingincreased 7.7% from the corresponding period in the previous year to ¥4,162 million (US$36.8 million), due to the revenue from renewed contracts with licensees, despite the decline in royalty revenue resulting from the expiration of patents included in a portfolio of patents licensed to the optical disc industry.
Operating income decreased 6.4% to ¥3,598 million (US$31.8 million) over the corresponding period of the previous year.
Otherssales decreased 17.3% from the corresponding period in the previous year to ¥21,660 million (US$191.7 million), mainly as a result of a drop in sales of optical disc manufacturing systems in Asia. In Japan, sales decreased 12.1% to ¥11,476 million (US$101.6 million) reflecting a sales shift from Japan to China of devices for cellular phones and a decrease in sales of factory automation systems. Overseas, sales decreased 22.5% to ¥10,184 million (US$90.1 million), due to a drop in sales of optical disc manufacturing systems in Asia, despite an increase in sales of devices for cellular phones in China.
Operating loss of ¥566 million (US$5.0 million) was posted, compared to operating income of ¥987 million in the corresponding period of the previous year. This loss was principally caused by a decrease in sales.
Semiannual results — Consolidated operating revenue for the six-month period ended September 30, 2005 was ¥349,898 million (US$3,096.4 million), a 1.4% increase over the corresponding period in the previous year. Net loss of ¥12,261 million (US$108.5 million) was posted for the period, compared to net income of ¥4,809 million in the corresponding period of the previous year.
Note: | Operating income (loss) in each business segment represents operating income (loss) recorded before intersegment transactions are eliminated. |
Cash Flows
Net cash provided by operating activities for the second quarter ended September 30, 2005 was ¥2,280 million (US$20.2 million), an increase of ¥635 million from ¥1,645 million for the corresponding period of the previous year. Although net loss of ¥6,918 million was posted this quarter, trade and other payables increased, and resulted in more cash provided for operating activities. Net cash used for investing activities was ¥7,001 million (US$62.0 million), a decrease of ¥42,277 million from the corresponding period of the previous year, which included an acquisition of a plasma display production subsidiary. Net cash used in financing activities was ¥4,217 million (US$37.3 million), compared with ¥815 million cash provided in the corresponding period of the previous year. The difference resulted mainly from redemption of bonds in the quarter under review.
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Corporate Policy and Dividend Policy
Customer satisfaction is our highest priority. In keeping with Pioneer group’s philosophy to “Move the Heart and Touch the Soul,” we strive to develop and provide advanced, high-quality, value-added electronics products that deliver satisfaction, comfort and convenience, and create new forms of entertainment.
An interim dividend of ¥7.5 (US$0.07) per share of common stock, a decrease of ¥5.0 from that for the corresponding period last year, will be paid to the Company’s shareholders of record as of September 30, 2005 (Japan time).
Based on its policy aimed at dividend continuance and stability, the Company determines an appropriate dividend amount, taking into consideration the Company’s financial condition, consolidated business results and other factors. The decision to lower the latest interim dividend reflects the impact to the Company of continued severe business conditions.
Addressing Current Challenges
The business environment remains severe, characterized by uncertain economic conditions, particularly as the rising prices of crude oil and other raw materials may exert negative impact on the economies of Japan and the U.S., in which consumer spending had been steady. Also, price competition is increasingly tough in markets for our key products.
Despite these difficult conditions, we are committed to becoming profitable again by reviewing every aspect of our major business fields, reinvesting our resources in advanced, high-quality, value-added products that identify the core value of our Company, and enhancing our brand equity.
In the plasma display business, we have been reinforcing our production capacity, as the market rapidly expands. Incoming orders, however, did not reach the levels we had planned for in the OEM (original equipment manufacturing) plasma display business, so we decided to adjust total production output until demand recovers. As we keep cutting costs extensively, we will continue to develop and launch unique products of superior innovation, performance and function. We are making efforts to enhance the value and strength of the Pioneer brand and to expand plasma display sales.
In the DVD business, the market is rapidly expanding, especially in DVD recorders and DVD drives for PCs, while product prices are falling sharply. To overcome the competition, we must introduce more advanced products as early as possible, in addition to carrying out more cost cutting in production in China. We are aggressively reviewing our development and design process, aiming to enhance speed and efficiency of development, and to precede our competitors in supplying markets with products that customers welcome.
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In the car electronics business, we are determined to maintain a leading position in the consumer market by reinforcing our car audio operations in the fast-growing markets of China, Central and South America and Russia. Developing products that differentiate us from our industry competitors will help extend the value of our brand. Our car navigation operations are renowned in Japan, where our sales efforts are as aggressive as ever. We are making a similarly bold push to fortify and extend our operations for this business in Europe and North America. In our business with automobile manufacturers, we are capitalizing on our product planning expertise in the consumer market, and propose innovative products to open up new business opportunities and increase sales.
The entire Pioneer Group is intensely focusing on cost reduction. Along with our ongoing efforts to improve management efficiency, we are advancing discussion on a restructuring that may include renewal of the Pioneer group business structure, as well as consequent consolidation of plants and offices and review of staffing. These measures, plus inventory reduction through better supply chain management, will help us return to profitability and improve cash flows.
Business Forecasts for Fiscal 2006
Our consolidated business forecasts for fiscal 2006, ending March 31, 2006, are unchanged from those announced on October 21, 2005, which are shown below. We assume average yen-U.S. dollar and yen-euro exchange rates for the remaining period of fiscal 2006 of ¥110 and ¥135, respectively.
(In millions of yen)
Projections for | Results for | Percent | ||||||||||
fiscal 2006 | fiscal 2005 | changes | ||||||||||
Operating revenue | ¥ | 770,000 | ¥ | 733,648 | +5.0 | % | ||||||
Operating income (loss) | (25,000 | ) | 2,592 | — | ||||||||
Loss before income taxes | (28,000 | ) | (187 | ) | — | |||||||
Net loss | ¥ | (24,000 | ) | ¥ | (8,789 | ) | — | |||||
In addition to our ongoing efforts to enhance management efficiency, we are currently advancing discussions on business restructuring. The expenses (non-operating) required for such business restructuring, however, are not included in these forecasts. Details of the restructuring will be announced in late November or after.
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. You also should not believe that it is our obligation to update or revise any forward-looking
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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 continue to design and develop and win acceptance of our products and services, which are offered in highly competitive markets characterized by continual new product introductions, rapid developments in technology, severe price competition and subjective and changing consumer preferences; (iv) our ability to successfully implement our business strategies; (v) our ability to compete, and 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; and (ix) the outcome of contingencies.
Pioneer Corporation is one of the leading manufacturers of consumer- and business-use electronics products such as audio, video and car electronics on a global scale. Its shares are traded on the New York Stock Exchange (ticker symbol PIO), Euronext Amsterdam, Tokyo Stock Exchange, and Osaka Securities Exchange.
# # # # # #
The U.S. dollar amounts in this release represent translation of Japanese yen, for convenience only, at the rate of ¥113=US$1.00, the approximate rate prevailing on September 30, 2005.
Attachments:
I. | Consolidated financial statements for the three months and the six months ended September 30, 2005 | ||
II. | Non-consolidated financial statements for the six months ended September 30, 2005 |
For further information, please contact:
Investor Relations Department, Corporate Branding and Communications Division
Pioneer Corporation, Tokyo
Phone: +81-3-3495-6774 / Fax: +81-3-3495-4301
E-mail: pioneer_ir@post.pioneer.co.jp
IR Website: http://www.pioneer.co.jp/ir-e/
Investor Relations Department, Corporate Branding and Communications Division
Pioneer Corporation, Tokyo
Phone: +81-3-3495-6774 / Fax: +81-3-3495-4301
E-mail: pioneer_ir@post.pioneer.co.jp
IR Website: http://www.pioneer.co.jp/ir-e/
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Pioneer Corporation and Subsidiaries
I. | CONSOLIDATED FINANCIAL STATEMENTS | |
FOR THE THREE MONTHS AND THE SIX MONTHS ENDED SEPTEMBER 30, 2005 |
(1) OPERATING REVENUE BY SEGMENT
(In millions of yen)
Three monthsended September 30 | ||||||||||||||||||||
2005 | 2004 | % to | ||||||||||||||||||
Amount | % to total | Amount | % to total | prior year | ||||||||||||||||
Domestic | ¥ | 19,028 | 10.2 | % | ¥ | 22,633 | 12.5 | % | 84.1 | % | ||||||||||
Overseas | 62,725 | 33.8 | 54,087 | 29.8 | 116.0 | |||||||||||||||
Home Electronics | 81,753 | 44.0 | 76,720 | 42.3 | 106.6 | |||||||||||||||
Domestic | 26,236 | 14.1 | 29,453 | 16.2 | 89.1 | |||||||||||||||
Overseas | 51,904 | 28.0 | 45,317 | 25.0 | 114.5 | |||||||||||||||
Car Electronics | 78,140 | 42.1 | 74,770 | 41.2 | 104.5 | |||||||||||||||
Domestic | — | — | — | — | — | |||||||||||||||
Overseas | 4,162 | 2.2 | 3,864 | 2.1 | 107.7 | |||||||||||||||
Patent Licensing | 4,162 | 2.2 | 3,864 | 2.1 | 107.7 | |||||||||||||||
Domestic | 11,476 | 6.3 | 13,058 | 7.2 | 87.9 | |||||||||||||||
Overseas | 10,184 | 5.4 | 13,148 | 7.2 | 77.5 | |||||||||||||||
Others | 21,660 | 11.7 | 26,206 | 14.4 | 82.7 | |||||||||||||||
Domestic | 56,740 | 30.6 | 65,144 | 35.9 | 87.1 | |||||||||||||||
Overseas | 128,975 | 69.4 | 116,416 | 64.1 | 110.8 | |||||||||||||||
Total | ¥ | 185,715 | 100.0 | % | ¥ | 181,560 | 100.0 | % | 102.3 | % | ||||||||||
(In millions of yen)
Six monthsended September 30 | ||||||||||||||||||||
2005 | 2004 | % to | ||||||||||||||||||
Amount | % to total | Amount | % to total | prior year | ||||||||||||||||
Domestic | ¥ | 36,068 | 10.3 | % | ¥ | 36,918 | 10.7 | % | 97.7 | % | ||||||||||
Overseas | 108,890 | 31.1 | 95,555 | 27.7 | 114.0 | |||||||||||||||
Home Electronics | 144,958 | 41.4 | 132,473 | 38.4 | 109.4 | |||||||||||||||
Domestic | 56,177 | 16.1 | 61,784 | 17.9 | 90.9 | |||||||||||||||
Overseas | 104,176 | 29.7 | 92,541 | 26.8 | 112.6 | |||||||||||||||
Car Electronics | 160,353 | 45.8 | 154,325 | 44.7 | 103.9 | |||||||||||||||
Domestic | — | — | — | — | — | |||||||||||||||
Overseas | 5,285 | 1.5 | 6,739 | 2.0 | 78.4 | |||||||||||||||
Patent Licensing | 5,285 | 1.5 | 6,739 | 2.0 | 78.4 | |||||||||||||||
Domestic | 19,918 | 5.7 | 25,281 | 7.3 | 78.8 | |||||||||||||||
Overseas | 19,384 | 5.6 | 26,229 | 7.6 | 73.9 | |||||||||||||||
Others | 39,302 | 11.3 | 51,510 | 14.9 | 76.3 | |||||||||||||||
Domestic | 112,163 | 32.1 | 123,983 | 35.9 | 90.5 | |||||||||||||||
Overseas | 237,735 | 67.9 | 221,064 | 64.1 | 107.5 | |||||||||||||||
Total | ¥ | 349,898 | 100.0 | % | ¥ | 345,047 | 100.0 | % | 101.4 | % | ||||||||||
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Pioneer Corporation and Subsidiaries
(2) CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions of yen)
Three monthsended September 30 | ||||||||||||
% to | ||||||||||||
2005 | 2004 | prior year | ||||||||||
Operating revenue: | ||||||||||||
Net sales | ¥ | 181,553 | ¥ | 177,696 | 102.2 | % | ||||||
Royalty revenue | 4,162 | 3,864 | 107.7 | |||||||||
Total operating revenue | 185,715 | 181,560 | 102.3 | |||||||||
Operating costs and expenses: | ||||||||||||
Cost of sales | 148,180 | 133,601 | 110.9 | |||||||||
Selling, general and administrative expenses | 45,054 | 39,573 | 113.9 | |||||||||
Total operating costs and expenses | 193,234 | 173,174 | 111.6 | |||||||||
Operating income (loss) | (7,519 | ) | 8,386 | — | ||||||||
Other income (expenses): | ||||||||||||
Interest income | 625 | 432 | 144.7 | |||||||||
Foreign exchange loss | (323 | ) | (228 | ) | 141.7 | |||||||
Interest expense | (325 | ) | (315 | ) | 103.2 | |||||||
Other—net | 2,197 | (76 | ) | — | ||||||||
Total other income (expenses) | 2,174 | (187 | ) | — | ||||||||
Income (loss) before income taxes | (5,345 | ) | 8,199 | — | ||||||||
Income taxes | 342 | 3,937 | 8.7 | |||||||||
Minority interest in losses (earnings) of subsidiaries | 718 | (270 | ) | — | ||||||||
Equity in losses of affiliated companies | (1,949 | ) | (680 | ) | 286.6 | |||||||
Net income (loss) | ¥ | (6,918 | ) | ¥ | 3,312 | — | % | |||||
(In millions of yen)
Six monthsended September 30 | ||||||||||||
% to | ||||||||||||
2005 | 2004 | prior year | ||||||||||
Operating revenue: | ||||||||||||
Net sales | ¥ | 344,613 | ¥ | 338,308 | 101.9 | % | ||||||
Royalty revenue | 5,285 | 6,739 | 78.4 | |||||||||
Total operating revenue | 349,898 | 345,047 | 101.4 | |||||||||
Operating costs and expenses: | ||||||||||||
Cost of sales | 278,393 | 250,878 | 111.0 | |||||||||
Selling, general and administrative expenses | 87,893 | 80,771 | 108.8 | |||||||||
Total operating costs and expenses | 366,286 | 331,649 | 110.4 | |||||||||
Operating income (loss) | (16,388 | ) | 13,398 | — | ||||||||
Other income (expenses): | ||||||||||||
Interest income | 1,252 | 790 | 158.5 | |||||||||
Foreign exchange loss | (1,065 | ) | (1,161 | ) | 91.7 | |||||||
Interest expense | (720 | ) | (689 | ) | 104.5 | |||||||
Other—net | 4,967 | 100 | 4,967.0 | |||||||||
Total other income (expenses) | 4,434 | (960 | ) | — | ||||||||
Income (loss) before income taxes | (11,954 | ) | 12,438 | — | ||||||||
Income taxes | (1,210 | ) | 5,544 | — | ||||||||
Minority interest in losses (earnings) of subsidiaries | 1,285 | (560 | ) | — | ||||||||
Equity in losses of affiliated companies | (2,802 | ) | (1,525 | ) | 183.7 | |||||||
Net income (loss) | ¥ | (12,261 | ) | ¥ | 4,809 | — | % | |||||
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Pioneer Corporation and Subsidiaries
(3) CONSOLIDATED BALANCE SHEETS
(In millions of yen)
September 30 | March 31 | |||||||||||||||||||
Increase/ | Increase/ | |||||||||||||||||||
2005 | 2004 | (Decrease) | 2005 | (Decrease) | ||||||||||||||||
ASSETS | ||||||||||||||||||||
Current assets: | ||||||||||||||||||||
Cash and cash equivalents | ¥ | 107,198 | ¥ | 123,936 | ¥ | (16,738 | ) | ¥ | 116,681 | ¥ | (9,483 | ) | ||||||||
Trade receivables, less allowance | 126,981 | 119,863 | 7,118 | 132,176 | (5,195 | ) | ||||||||||||||
Inventories | 126,594 | 135,504 | (8,910 | ) | 109,015 | 17,579 | ||||||||||||||
Others | 75,628 | 74,711 | 917 | 69,024 | 6,604 | |||||||||||||||
Total current assets | 436,401 | 454,014 | (17,613 | ) | 426,896 | 9,505 | ||||||||||||||
Investments and long-term receivables | 25,268 | 29,553 | (4,285 | ) | 28,828 | (3,560 | ) | |||||||||||||
Property, plant and equipment, less depreciation | 203,557 | 208,964 | (5,407 | ) | 210,145 | (6,588 | ) | |||||||||||||
Intangible assets | 22,974 | 25,590 | (2,616 | ) | 24,052 | (1,078 | ) | |||||||||||||
Other assets | 39,393 | 39,015 | 378 | 35,246 | 4,147 | |||||||||||||||
Total assets | ¥ | 727,593 | ¥ | 757,136 | ¥ | (29,543 | ) | ¥ | 725,167 | ¥ | 2,426 | |||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||
Short-term borrowings and current portion of long-term debt | ¥ | 55,560 | ¥ | 40,615 | ¥ | 14,945 | ¥ | 52,428 | ¥ | 3,132 | ||||||||||
Trade payables | 104,831 | 103,031 | 1,800 | 96,335 | 8,496 | |||||||||||||||
Others | 101,857 | 104,554 | (2,697 | ) | 102,407 | (550 | ) | |||||||||||||
Total current liabilities | 262,248 | 248,200 | 14,048 | 251,170 | 11,078 | |||||||||||||||
Long-term debt | 79,512 | 87,397 | (7,885 | ) | 81,219 | (1,707 | ) | |||||||||||||
Other long-term liabilities | 41,705 | 58,909 | (17,204 | ) | 42,371 | (666 | ) | |||||||||||||
Minority interests | 17,085 | 18,281 | (1,196 | ) | 18,168 | (1,083 | ) | |||||||||||||
Shareholders’ equity: | ||||||||||||||||||||
Common stock | 49,049 | 49,049 | — | 49,049 | — | |||||||||||||||
Capital surplus | 82,834 | 82,612 | 222 | 82,735 | 99 | |||||||||||||||
Retained earnings | 246,987 | 276,334 | (29,347 | ) | 260,556 | (13,569 | ) | |||||||||||||
Accumulated other comprehensive income (loss) | (39,390 | ) | (53,185 | ) | 13,795 | (47,669 | ) | 8,279 | ||||||||||||
Treasury stock | (12,437 | ) | (10,461 | ) | (1,976 | ) | (12,432 | ) | (5 | ) | ||||||||||
Total shareholders’ equity | 327,043 | 344,349 | (17,306 | ) | 332,239 | (5,196 | ) | |||||||||||||
Total liabilities and shareholders’ equity | ¥ | 727,593 | ¥ | 757,136 | ¥ | (29,543 | ) | ¥ | 725,167 | ¥ | 2,426 | |||||||||
Breakdown of accumulated other comprehensive | ||||||||||||||||||||
income (loss): | ||||||||||||||||||||
Minimum pension liability adjustments | ¥ | (11,391 | ) | ¥ | (21,714 | ) | ¥ | 10,323 | ¥ | (11,186 | ) | ¥ | (205 | ) | ||||||
Net unrealized holding gain on securities | 7,475 | 7,516 | (41 | ) | 8,250 | (775 | ) | |||||||||||||
Cumulative foreign currency translation adjustments | (35,474 | ) | (38,987 | ) | 3,513 | (44,733 | ) | 9,259 | ||||||||||||
Total accumulated other comprehensive income (loss) | ¥ | (39,390 | ) | ¥ | (53,185 | ) | ¥ | 13,795 | ¥ | (47,669 | ) | ¥ | 8,279 | |||||||
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Pioneer Corporation and Subsidiaries
(4) CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
(In millions of yen)
Accumulated | ||||||||||||||||||||||||
Other | Total | |||||||||||||||||||||||
Common | Capital | Retained | Comprehensive | Treasury | Shareholders’ | |||||||||||||||||||
Stock | Surplus | Earnings | Income (Loss) | Stock | Equity | |||||||||||||||||||
Balance at March 31, 2004 | ¥ | 49,049 | ¥ | 82,464 | ¥ | 273,718 | ¥ | (61,829 | ) | ¥ | (10,464 | ) | ¥ | 332,938 | ||||||||||
Net loss | (8,789 | ) | (8,789 | ) | ||||||||||||||||||||
Other comprehensive income | 14,160 | 14,160 | ||||||||||||||||||||||
Value ascribed to stock options | 270 | 270 | ||||||||||||||||||||||
Cash dividends (¥25 per share) | (4,373 | ) | (4,373 | ) | ||||||||||||||||||||
Purchase and sales of treasury stock, net | 1 | (1,968 | ) | (1,967 | ) | |||||||||||||||||||
Balance at March 31, 2005 | ¥ | 49,049 | ¥ | 82,735 | ¥ | 260,556 | ¥ | (47,669 | ) | ¥ | (12,432 | ) | ¥ | 332,239 | ||||||||||
Net loss | (12,261 | ) | (12,261 | ) | ||||||||||||||||||||
Other comprehensive income | 8,279 | 8,279 | ||||||||||||||||||||||
Value ascribed to stock options | 99 | 99 | ||||||||||||||||||||||
Cash dividends (¥7.5 per share) | (1,308 | ) | (1,308 | ) | ||||||||||||||||||||
Purchase and sales of treasury stock, net | (5 | ) | (5 | ) | ||||||||||||||||||||
Balance at September 30, 2005 | ¥ | 49,049 | ¥ | 82,834 | ¥ | 246,987 | ¥ | (39,390 | ) | ¥ | (12,437 | ) | ¥ | 327,043 | ||||||||||
(5) CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions of yen)
Three months | Six months | |||||||||||||||
ended September 30 | ended September 30 | |||||||||||||||
2005 | 2004 | 2005 | 2004 | |||||||||||||
I. Operating activities: | ||||||||||||||||
Net income (loss) | ¥ | (6,918 | ) | ¥ | 3,312 | ¥ | (12,261 | ) | ¥ | 4,809 | ||||||
Depreciation and amortization | 11,575 | 10,778 | 24,122 | 21,287 | ||||||||||||
(Increase) decrease in trade receivables | (15,718 | ) | (8,194 | ) | 7,160 | 415 | ||||||||||
(Increase) decrease in inventories | 1,396 | (6 | ) | (14,635 | ) | (18,814 | ) | |||||||||
Increase (decrease) in trade payables | 5,607 | (76 | ) | 8,016 | 7,168 | |||||||||||
Increase (decrease) in other accrued liabilities | 10,822 | 1,545 | 2,737 | (11,185 | ) | |||||||||||
Other | (4,484 | ) | (5,714 | ) | (13,919 | ) | (7,711 | ) | ||||||||
Net cash provided by (used in) operating activities | 2,280 | 1,645 | 1,220 | (4,031 | ) | |||||||||||
II. Investing activities: | ||||||||||||||||
Payment for purchase of fixed assets | (10,355 | ) | (12,646 | ) | (19,282 | ) | (26,284 | ) | ||||||||
Payment for purchase of subsidiary | — | (36,615 | ) | — | (36,615 | ) | ||||||||||
Other | 3,354 | (17 | ) | 7,357 | 338 | |||||||||||
Net cash used in investing activities | (7,001 | ) | (49,278 | ) | (11,925 | ) | (62,561 | ) | ||||||||
III. Financing activities: | ||||||||||||||||
Increase (decrease) in short-term borrowings and long-term debt | (3,183 | ) | 1,035 | 2,866 | (3,034 | ) | ||||||||||
Dividends paid | — | — | (2,180 | ) | (2,193 | ) | ||||||||||
Other | (1,034 | ) | (220 | ) | (2,073 | ) | (323 | ) | ||||||||
Net cash provided by (used in) financing activities | (4,217 | ) | 815 | (1,387 | ) | (5,550 | ) | |||||||||
Effect of exchange rate changes on cash and cash equivalents | 1,366 | 1,792 | 2,609 | 3,659 | ||||||||||||
Net decrease in cash and cash equivalents | (7,572 | ) | (45,026 | ) | (9,483 | ) | (68,483 | ) | ||||||||
Cash and cash equivalents, beginning of period | 114,770 | 168,962 | 116,681 | 192,419 | ||||||||||||
Cash and cash equivalents, end of period | ¥ | 107,198 | ¥ | 123,936 | ¥ | 107,198 | ¥ | 123,936 | ||||||||
Free cash flow (I + II) | ¥ | (4,721 | ) | ¥ | (47,633 | ) | ¥ | (10,705 | ) | ¥ | (66,592 | ) | ||||
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Table of Contents
Pioneer Corporation and Subsidiaries
(6) SEGMENT INFORMATION
The following segment information is prepared pursuant to the regulations under the Securities and Exchange Law of Japan.
<Business Segments>
(In millions of yen)
Three monthsended September 30 | ||||||||||||||||||||||||
2005 | 2004 | % to prior year | ||||||||||||||||||||||
Operating | Operating | Operating | Operating | Operating | Operating | |||||||||||||||||||
Revenue | Income | Revenue | Income | Revenue | Income | |||||||||||||||||||
Home Electronics | ¥ | 82,264 | ¥ | (13,140 | ) | ¥ | 77,368 | ¥ | 32 | 106.3 | % | — | % | |||||||||||
Car Electronics | 78,516 | 2,896 | 75,401 | 4,658 | 104.1 | 62.2 | ||||||||||||||||||
Patent Licensing | 4,201 | 3,598 | 4,318 | 3,843 | 97.3 | 93.6 | ||||||||||||||||||
Others | 31,556 | (566 | ) | 37,828 | 987 | 83.4 | — | |||||||||||||||||
Total | 196,537 | (7,212 | ) | 194,915 | 9,520 | 100.8 | — | |||||||||||||||||
Corporate and Eliminations | (10,822 | ) | (307 | ) | (13,355 | ) | (1,134 | ) | — | — | ||||||||||||||
Consolidated | ¥ | 185,715 | ¥ | (7,519 | ) | ¥ | 181,560 | ¥ | 8,386 | 102.3 | % | — | % | |||||||||||
(In millions of yen)
Six monthsended September 30 | ||||||||||||||||||||||||
2005 | 2004 | % to prior year | ||||||||||||||||||||||
Operating | Operating | Operating | Operating | Operating | Operating | |||||||||||||||||||
Revenue | Income | Revenue | Income | Revenue | Income | |||||||||||||||||||
Home Electronics | ¥ | 145,772 | ¥ | (25,568 | ) | ¥ | 133,751 | ¥ | (4,290 | ) | 109.0 | % | — | % | ||||||||||
Car Electronics | 161,124 | 8,210 | 155,002 | 10,974 | 103.9 | 74.8 | ||||||||||||||||||
Patent Licensing | 5,324 | 3,969 | 7,580 | 6,592 | 70.2 | 60.2 | ||||||||||||||||||
Others | 59,195 | (1,320 | ) | 71,196 | 2,035 | 83.1 | — | |||||||||||||||||
Total | 371,415 | (14,709 | ) | 367,529 | 15,311 | 101.1 | — | |||||||||||||||||
Corporate and Eliminations | (21,517 | ) | (1,679 | ) | (22,482 | ) | (1,913 | ) | — | — | ||||||||||||||
Consolidated | ¥ | 349,898 | ¥ | (16,388 | ) | ¥ | 345,047 | ¥ | 13,398 | 101.4 | % | — | % | |||||||||||
<Geographic Segments>
(In millions of yen)
Six monthsended September 30 | ||||||||||||||||||||||||
2005 | 2004 | % to prior year | ||||||||||||||||||||||
Operating | Operating | Operating | Operating | Operating | Operating | |||||||||||||||||||
Revenue | Income | Revenue | Income | Revenue | Income | |||||||||||||||||||
Japan | ¥ | 292,978 | ¥ | (15,665 | ) | ¥ | 292,347 | ¥ | 6,858 | 100.2 | % | — | % | |||||||||||
North America | 92,524 | (1,810 | ) | 84,058 | 3,073 | 110.1 | — | |||||||||||||||||
Europe | 66,311 | (1,315 | ) | 66,208 | (1,070 | ) | 100.2 | — | ||||||||||||||||
Other Regions | 160,224 | 3,700 | 143,206 | 3,841 | 111.9 | 96.3 | ||||||||||||||||||
Total | 612,037 | (15,090 | ) | 585,819 | 12,702 | 104.5 | — | |||||||||||||||||
Corporate and Eliminations | (262,139 | ) | (1,298 | ) | (240,772 | ) | 696 | — | — | |||||||||||||||
Consolidated | ¥ | 349,898 | ¥ | (16,388 | ) | ¥ | 345,047 | ¥ | 13,398 | 101.4 | % | — | % | |||||||||||
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Table of Contents
Pioneer Corporation and Subsidiaries
Notes:
1. | The Company’s consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America. |
2. | The consolidated financial statements include the accounts of the parent company and 126 subsidiaries and the investments in 5 affiliated companies accounted for on an equity basis. |
3. | Effective from fiscal 2005 year-end presentation, operating income (loss) is presented as net sales less cost of sales, selling, general and administrative expenses in order to be consistent with generally accepted financial reporting practice in Japan. The Company believes that such presentation is useful for comparison of the Company’s financial results with those of other Japanese companies. Under the U.S. GAAP, business restructuring expenses and losses on impairment of long-lived assets as well as gains and losses on sale and disposal of fixed assets included in “Other—net” are included in operating income (loss). Previously reported amounts in consolidated statements of operations and segment information have been reclassified accordingly. |
4. | Effective from this fiscal 2006, the Company changed business segment classification for certain businesses. Results related to plasma displays for business use and DJ equipment have been moved from “Others” to “Home Electronics.” Corresponding figures for the previously reported operating revenue by segment and segment information have been reclassified accordingly. |
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Table of Contents
Pioneer Corporation—Parent Company Only
II. | NON-CONSOLIDATED FINANCIAL STATEMENTS | |
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2005 |
(1) SALES BY SEGMENT
(In millions of yen)
Six monthsended September 30 | ||||||||||||||||||||
2005 | 2004 | % to | ||||||||||||||||||
Amount | % to total | Amount | % to total | prior year | ||||||||||||||||
Domestic | ¥ | 31,923 | 13.0 | % | ¥ | 32,120 | 13.7 | % | 99.4 | % | ||||||||||
Export | 84,303 | 34.3 | 77,616 | 33.2 | 108.6 | |||||||||||||||
Home Electronics | 116,226 | 47.3 | 109,737 | 46.9 | 105.9 | |||||||||||||||
Domestic | 55,997 | 22.8 | 61,362 | 26.3 | 91.2 | |||||||||||||||
Export | 73,053 | 29.7 | 62,086 | 26.5 | 117.7 | |||||||||||||||
Car Electronics | 129,051 | 52.5 | 124,173 | 52.8 | 103.9 | |||||||||||||||
Domestic | 494 | 0.2 | 788 | 0.3 | 62.8 | |||||||||||||||
Export | 47 | 0.0 | 64 | 0.0 | 72.9 | |||||||||||||||
Others | 541 | 0.2 | 852 | 0.3 | 63.5 | |||||||||||||||
Domestic | 88,416 | 36.0 | 94,995 | 40.3 | 93.1 | |||||||||||||||
Export | 157,403 | 64.0 | 139,767 | 59.7 | 112.6 | |||||||||||||||
Total | ¥ | 245,819 | 100.0 | % | ¥ | 234,039 | 100.0 | % | 104.7 | % | ||||||||||
Note: | Effective from this fiscal 2006, the Company changed business segment classification for certain businesses. Results related to plasma displays for business use and DJ equipment have been moved from “Others” to “Home Electronics.” Previously reported amounts have been reclassified accordingly. |
(2) CONDENSED STATEMENTS OF OPERATIONS
(In millions of yen)
Six monthsended September 30 | ||||||||||||||||
2005 | 2004 | |||||||||||||||
% to | % to | |||||||||||||||
Amount | net sales | Amount | net sales | |||||||||||||
Net sales | ¥ | 245,819 | 100.0 | % | ¥ | 234,039 | 100.0 | % | ||||||||
Cost of sales | 213,720 | 86.9 | 191,874 | 82.0 | ||||||||||||
Selling, general and administrative expenses | 41,592 | 17.0 | 41,981 | 17.9 | ||||||||||||
Operating income (loss) | (9,493 | ) | (3.9 | ) | 183 | 0.1 | ||||||||||
Non-operating income—net | 54 | 0.1 | 2,098 | 0.9 | ||||||||||||
Ordinary income (loss) | (9,439 | ) | (3.8 | ) | 2,282 | 1.0 | ||||||||||
Other income (expenses)—net | 357 | 0.1 | (0 | ) | (0.0 | ) | ||||||||||
Income (loss) before income taxes | (9,081 | ) | (3.7 | ) | 2,281 | 1.0 | ||||||||||
Income taxes | (3,709 | ) | (1.5 | ) | 141 | 0.1 | ||||||||||
Net income (loss) | ¥ | (5,371 | ) | (2.2 | )% | ¥ | 2,140 | 0.9 | % | |||||||
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Table of Contents
Pioneer Corporation—Parent Company Only
(3) CONDENSED BALANCE SHEETS
(In millions of yen)
September 30 | March 31 | |||||||||||
2005 | 2004 | 2005 | ||||||||||
ASSETS | ||||||||||||
Current assets: | ||||||||||||
Cash | ¥ | 46,162 | ¥ | 33,829 | ¥ | 40,502 | ||||||
Notes and accounts receivable—trade | 46,605 | 38,018 | 51,833 | |||||||||
Marketable securities | – | 18,683 | 11,685 | |||||||||
Inventories | 29,044 | 34,733 | 28,018 | |||||||||
Other current assets | 31,020 | 64,070 | 41,683 | |||||||||
Total current assets | 152,832 | 189,336 | 173,724 | |||||||||
Fixed assets: | ||||||||||||
Tangible | 52,674 | 48,282 | 53,301 | |||||||||
Intangible | 28,523 | 21,335 | 29,826 | |||||||||
Investments and others | 208,751 | 204,768 | 201,893 | |||||||||
Total fixed assets | 289,949 | 274,386 | 285,021 | |||||||||
Total assets | ¥ | 442,782 | ¥ | 463,722 | ¥ | 458,745 | ||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||
Current liabilities: | ||||||||||||
Notes and accounts payable—trade | ¥ | 53,827 | ¥ | 50,129 | ¥ | 52,738 | ||||||
Accrued expenses | 37,471 | 34,730 | 40,152 | |||||||||
Other current liabilities | 15,350 | 26,766 | 23,611 | |||||||||
Total current liabilities | 106,649 | 111,627 | 116,502 | |||||||||
Long-term liabilities | 73,279 | 76,100 | 73,237 | |||||||||
Total liabilities | 179,929 | 187,727 | 189,740 | |||||||||
Shareholders’ equity | 262,852 | 275,995 | 269,005 | |||||||||
Total liabilities and shareholders’ equity | ¥ | 442,782 | ¥ | 463,722 | ¥ | 458,745 | ||||||
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