FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
For the month of October, 2004
Commission File Number 1-7616
PIONEER CORPORATION
4-1, MEGURO 1-CHOME, MEGURO-KU, TOKYO 153-8654, JAPAN
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F:
Form 20-F þ Form 40-F 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)(1):
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):
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.
Yes o No þ
If Yes is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-
SIGNATURES | ||||||||
Pioneer Announces Second-Quarter and Semiannual Results for Fiscal 2005 | ||||||||
CONSOLIDATED FINANCIAL STATEMENTS | ||||||||
NON-CONSOLIDATED FINANCIAL STATEMENTS |
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 28, 2004 | By | /s/ Kaneo Ito Kaneo Ito President and Representative Director |
This report on Form 6-K contains the following:
1. | The announcement released by the Company to the press in Japan dated October 28, 2004, concerning its consolidated second-quarter and semiannual business results, and non-consolidated semiannual business results, for the period ended September 30, 2004. |
For Immediate Release
October 28, 2004
Pioneer Announces Second-Quarter and Semiannual Results for Fiscal 2005
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, 2004.
Consolidated Financial Highlights
(In millions of yen except per share information) | ||||||||||||||||||||||||
Three months | Six months | |||||||||||||||||||||||
ended September 30 |
ended September 30 |
|||||||||||||||||||||||
% to | % to | |||||||||||||||||||||||
prior | prior | |||||||||||||||||||||||
2004 |
2003 |
year |
2004 |
2003 |
year |
|||||||||||||||||||
Operating revenue |
¥ | 181,560 | ¥ | 167,513 | 108.4 | % | ¥ | 345,047 | ¥ | 319,982 | 107.8 | % | ||||||||||||
Operating income |
8,269 | 9,879 | 83.7 | 13,273 | 17,558 | 75.6 | ||||||||||||||||||
Income from continuing operations
before income taxes |
8,199 | 9,205 | 89.1 | 12,438 | 16,585 | 75.0 | ||||||||||||||||||
Income from continuing
operations |
3,312 | 4,807 | 68.9 | 4,809 | 7,836 | 61.4 | ||||||||||||||||||
Net income |
¥ | 3,312 | ¥ | 9,536 | 34.7 | % | ¥ | 4,809 | ¥ | 12,475 | 38.5 | % | ||||||||||||
Basic earnings per share: |
||||||||||||||||||||||||
Income from continuing
operations |
¥ | 18.88 | ¥ | 27.40 | ¥ | 27.41 | ¥ | 44.67 | ||||||||||||||||
Income from discontinued
operations, net of tax |
| 26.96 | | 26.44 | ||||||||||||||||||||
Net income |
¥ | 18.88 | ¥ | 54.36 | ¥ | 27.41 | ¥ | 71.11 | ||||||||||||||||
Diluted earnings per share: |
||||||||||||||||||||||||
Income from continuing
operations |
¥ | 16.99 | ¥ | 27.39 | ¥ | 24.45 | ¥ | 44.66 | ||||||||||||||||
Income from discontinued
operations, net of tax |
| 26.95 | | 26.43 | ||||||||||||||||||||
Net income |
¥ | 16.99 | ¥ | 54.34 | ¥ | 24.45 | ¥ | 71.09 |
Note: | As a result of the sales of subsidiaries in the audio/video software business in fiscal 2004, the gain on such sales, as well as the operating results of the discontinued operations, are presented as a separate line item in consolidated statements of income in accordance with Statement of Financial Accounting Standards No. 144, Accounting for the Impairment or Disposal of Long-Lived Assets. Previously reported amounts have been reclassified accordingly. |
- 1 -
Consolidated Business Results
The second quarter of fiscal 2005, ended September 30, 2004, resulted in
consolidated operating revenue of ¥181,560 million (US$1,635.7 million), an
8.4% increase from the corresponding period in the previous year. Operating
income was ¥8,269 million (US$74.5 million), a 16.3% decrease, and net income
was ¥3,312 million (US$29.8 million), a 65.3% decrease. The average value of
the yen was up 6.9% against the U.S. dollar and down 1.6% against the euro from
the corresponding period in the previous year.
Home Electronics sales increased 6.7% to ¥71,717 million (US$646.1 million) from the corresponding period last year. In Japan, sales rose 29.6% to ¥21,809 million (US$196.5 million) primarily due to a large increase in sales of home-use plasma displays and DVD recorders, despite the decreased sales of recordable DVD drives for personal computers (PCs). Overseas sales were substantially the same as in the corresponding period last year at ¥49,908 million (US$449.6 million), reflecting a decline in sales of recordable DVD drives and audio products worldwide, as well as contraction of our digital cable TV set-top box business in North America, which offset an increase in sales of home-use plasma displays and DVD recorders worldwide.
Car Electronics sales amounted to ¥74,770 million (US$673.6 million), up 11.4% over the corresponding period in the previous year. In Japan, sales increased 14.3% to ¥29,453 million (US$265.3 million), reflecting increased car navigation system sales to automobile manufacturers, despite decreased sales of such systems to the consumer market. Overseas sales increased 9.6% to ¥45,317 million (US$408.3 million), primarily due to higher sales of car navigation systems in North America and Europe, audio products to automobile manufacturers in North America and car audio products in Asia and Central and South America.
Royalty revenue from Patent Licensing decreased 22.5% from the corresponding period in the previous year to ¥3,864 million (US$34.8 million). This was due to a decline in royalty revenue resulting from the expiration of the Companys optical disc-related patents in certain areas.
Others sales increased 10.6% from the corresponding period in the previous year to ¥31,209 million (US$281.2 million). In Japan, sales were lower by 4.4%, at ¥13,882 million (US$125.1 million) primarily due to a decrease in sales of organic light-emitting diode (OLED) display panels and a sales shift from Japan to China of semiconductors related to laser pickups, despite the increase in sales of factory-automation (FA) systems. Overseas, sales were up 26.5% over the previous year to ¥17,327 million (US$156.1 million), primarily due to increased sales of devices for cellular phones and semiconductors related to laser pickups in China, as well as FA systems in Asia, despite decreased sales in North America and Europe of business-use plasma displays.
- 2 -
Operating income decreased 16.3% from the corresponding period of the previous year to ¥8,269 million (US$74.5 million). This decrease occurred despite increased net sales, and reflected decreased gross profit margin due to intensified price competition for our major products and decreased profit from patent licensing as a result of a decline in royalty revenue. Net income came to ¥3,312 million (US$29.8 million), a 65.3% decrease, due to decrease in operating income as well as absence of the ¥4,729 million income from discontinued operations recorded in the corresponding period of last year as a result of the sale of subsidiaries in the audio/video software business.
Semiannual results Consolidated operating revenue for the six-month period ended September 30, 2004, was ¥345,047 million (US$3,108.5 million), a 7.8% increase compared with the corresponding period last year. Net income for the period decreased by 61.5% to ¥4,809 million (US$43.3 million).
Cash Flows
Net cash provided by operating activities for the second quarter ended
September 30, 2004 was ¥1,645 million (US$14.8 million), a decrease of ¥15,161
million from ¥16,806 million for the corresponding period of last year. In
investing activities, ¥49,278 million was used mainly for the acquisition of a
plasma display production subsidiary from NEC Corporation and purchase of fixed
assets.
Dividend Policy and Interim Dividend
The Companys policy on dividends allows for continued and stable dividend
payment. The Company determines the appropriate dividend amount, taking into
consideration its financial condition, business results, internal reserves and
other factors, all on a consolidated basis.
In line with this policy, an interim dividend of ¥12.5 (US$0.11) per share of common stock, the same amount as in the corresponding period last year, will be paid to the shareholders of record as of September 30, 2004 (Japan time).
Addressing Current Challenges
The business environment remains severe, characterized by uncertain economic
conditions in our major markets, Japan, North America and Europe, price
competition beyond our projections in our major product categories, and
exchange rate fluctuations. In order to achieve the medium-term management
plan, the Company is concentrating resources on strategic businesses as
described below to recover profits and improve efficiency.
In our plasma display business, we are working to build up capacity of the production system to meet fast-growing demand, thereby increasing profitability of the business. Our recently added fourth line has expanded our production capacity to approximately 600,000 units a year. Our new plant acquired from NEC Corporation in September 2004 further increased Pioneers plasma display production capacity,
- 3 -
bringing it to a total of approximately 1,100,000 units a year.
In the DVD business, markets for DVD recorders, especially those with large-capacity hard disk drives (HDDs), and recordable DVD drives for PCs, are rapidly growing. On the other hand, price competition is getting harsher. To cope with the situation, we are advancing cost cutting, for example, by carrying out integrated production from laser pickups to finished products in China. We are also expanding sales of drive units of DVD recorders to other manufacturers.
In our car electronics business, we continue our efforts to strengthen our leadership in the consumer and OEM (original equipment manufacturing) markets. Our car navigation systems enjoy an excellent reputation in Japan, and we intend to expand this business in Europe and North America. In the car audio business, we plan to fortify our strong position with distinctive new products, and maintain earnest sales efforts in such growing markets as China and Central and South America.
Our drive to minimize operating costs and expenses worldwide continues. We are expanding production in China to reduce overall manufacturing costs; implementing an expense supervision system to lower the ratio of our selling, general and administrative expenses to consolidated operating revenue; and applying supply chain management to review and optimize inventory control worldwide, for everything from parts procurement to retailer supply, on a weekly basis. We believe that such initiatives help us return to growth in profitability and improve cash flows.
Business Forecasts for Fiscal 2005
Assuming that the yen-U.S. dollar and the yen-euro exchange rates average ¥105
and ¥130, respectively, through the end of fiscal 2005, ending March 31, 2005,
we have revised our consolidated business forecasts for fiscal 2005, from those
announced in July 2004, as follows:
(In millions of yen)
Revised projections | Previous projections | Results | ||||||||||
for fiscal 2005 |
for fiscal 2005 |
for fiscal 2004 |
||||||||||
Operating revenue |
¥ | 800,000 | ¥ | 800,000 | ¥ | 700,885 | ||||||
Operating income |
27,000 | 50,000 | 43,719 | |||||||||
Income before income taxes |
25,000 | 48,000 | 41,848 | |||||||||
Net income |
¥ | 10,000 | ¥ | 25,000 | ¥ | 24,838 | ||||||
The projection of operating revenue for fiscal 2005 stays unchanged. The acquisition of a plasma display production subsidiary from NEC Corporation in September 2004 is expected to increase operating revenue. However, reflecting intensified competition and falling prices in the markets, sales of DVD recorders and recordable DVD drives are not growing as previously projected, and in addition, the scheduled shipment to a new customer of OLED display panels is to be delayed until the next fiscal year.
- 4 -
The projections of operating income, income before income taxes and net income are revised downward, due to the decreased profit margins caused by the harsher competition and downward pressures on prices with the Companys major lines of products, despite the efforts to lower costs in parts purchases and product manufacturing.
Corporate Policy
Customer satisfaction is our highest priority. In keeping with Pioneer groups
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.
Accordingly, in August 1998 we devised a medium-term management plan, and set the following four business targets and two financial targets to be achieved by March 2006.
Business targets:
Financial targets for fiscal year ending March 2006:
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 managements 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 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 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.
- 5 -
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 ¥111=US$1.00, the approximate rate prevailing on September 30, 2004.
Attachments:
I. | Consolidated financial statements for the three months and the six months ended September 30, 2004 | ||
II. | Non-consolidated financial statements for the six months ended September 30, 2004 |
For further information, please contact:
Investor Relations Department, Corporate Communications Division
Pioneer Corporation, Tokyo
Phone: +81-3-3495-6774 / Fax: +81-3-3495-4301
E-mail: pioneer_ir@post.pioneer.co.jp
Website: http://www.pioneer.co.jp/corp/ir/index-e.html
- 6 -
Pioneer Corporation and Subsidiaries
I. | CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE MONTHS AND THE SIX MONTHS ENDED SEPTEMBER 30, 2004 |
|||
(1) | OPERATING REVENUE BY SEGMENT |
(In millions of yen)
Three months ended September 30 |
||||||||||||||||||||
2004 |
2003 |
% to | ||||||||||||||||||
% to | % to | prior | ||||||||||||||||||
Amount |
total |
Amount |
total |
year |
||||||||||||||||
Domestic |
¥ | 21,809 | 12.0 | % | ¥ | 16,829 | 10.0 | % | 129.6 | % | ||||||||||
Overseas |
49,908 | 27.5 | 50,379 | 30.1 | 99.1 | |||||||||||||||
Home Electronics |
71,717 | 39.5 | 67,208 | 40.1 | 106.7 | |||||||||||||||
Domestic |
29,453 | 16.2 | 25,766 | 15.4 | 114.3 | |||||||||||||||
Overseas |
45,317 | 25.0 | 41,336 | 24.7 | 109.6 | |||||||||||||||
Car Electronics |
74,770 | 41.2 | 67,102 | 40.1 | 111.4 | |||||||||||||||
Domestic |
| | | | | |||||||||||||||
Overseas |
3,864 | 2.1 | 4,986 | 3.0 | 77.5 | |||||||||||||||
Patent Licensing |
3,864 | 2.1 | 4,986 | 3.0 | 77.5 | |||||||||||||||
Domestic |
13,882 | 7.7 | 14,515 | 8.7 | 95.6 | |||||||||||||||
Overseas |
17,327 | 9.5 | 13,702 | 8.1 | 126.5 | |||||||||||||||
Others |
31,209 | 17.2 | 28,217 | 16.8 | 110.6 | |||||||||||||||
Domestic |
65,144 | 35.9 | 57,110 | 34.1 | 114.1 | |||||||||||||||
Overseas |
116,416 | 64.1 | 110,403 | 65.9 | 105.4 | |||||||||||||||
Total |
¥ | 181,560 | 100.0 | % | ¥ | 167,513 | 100.0 | % | 108.4 | % | ||||||||||
(In millions of yen)
Six months ended September 30 |
||||||||||||||||||||
2004 |
2003 |
% to | ||||||||||||||||||
% to | % to | prior | ||||||||||||||||||
Amount |
total |
Amount |
total |
year |
||||||||||||||||
Domestic |
¥ | 35,664 | 10.3 | % | ¥ | 32,686 | 10.2 | % | 109.1 | % | ||||||||||
Overseas |
88,020 | 25.5 | 85,597 | 26.8 | 102.8 | |||||||||||||||
Home Electronics |
123,684 | 35.8 | 118,283 | 37.0 | 104.6 | |||||||||||||||
Domestic |
61,784 | 17.9 | 57,110 | 17.8 | 108.2 | |||||||||||||||
Overseas |
92,541 | 26.8 | 84,730 | 26.5 | 109.2 | |||||||||||||||
Car Electronics |
154,325 | 44.7 | 141,840 | 44.3 | 108.8 | |||||||||||||||
Domestic |
| | | | | |||||||||||||||
Overseas |
6,739 | 2.0 | 8,404 | 2.6 | 80.2 | |||||||||||||||
Patent Licensing |
6,739 | 2.0 | 8,404 | 2.6 | 80.2 | |||||||||||||||
Domestic |
26,535 | 7.7 | 27,494 | 8.7 | 96.5 | |||||||||||||||
Overseas |
33,764 | 9.8 | 23,961 | 7.4 | 140.9 | |||||||||||||||
Others |
60,299 | 17.5 | 51,455 | 16.1 | 117.2 | |||||||||||||||
Domestic |
123,983 | 35.9 | 117,290 | 36.7 | 105.7 | |||||||||||||||
Overseas |
221,064 | 64.1 | 202,692 | 63.3 | 109.1 | |||||||||||||||
Total |
¥ | 345,047 | 100.0 | % | ¥ | 319,982 | 100.0 | % | 107.8 | % | ||||||||||
Pioneer Corporation and Subsidiaries
(2) | CONSOLIDATED STATEMENTS OF INCOME |
(In millions of yen)
Three months ended September 30 |
||||||||||||
% to | ||||||||||||
2004 |
2003 |
prior year |
||||||||||
Operating revenue: |
||||||||||||
Net sales |
¥ | 177,696 | ¥ | 162,527 | 109.3 | % | ||||||
Royalty revenue |
3,864 | 4,986 | 77.5 | |||||||||
Total operating revenue |
181,560 | 167,513 | 108.4 | |||||||||
Operating costs and expenses: |
||||||||||||
Cost of sales |
133,601 | 115,455 | 115.7 | |||||||||
Selling, general and administrative |
39,690 | 42,179 | 94.1 | |||||||||
Total operating costs and expenses |
173,291 | 157,634 | 109.9 | |||||||||
Operating income from continuing operations |
8,269 | 9,879 | 83.7 | |||||||||
Other income (expenses): |
||||||||||||
Interest income |
432 | 319 | 135.4 | |||||||||
Foreign exchange loss |
(228 | ) | (489 | ) | 46.6 | |||||||
Interest expense |
(315 | ) | (746 | ) | 42.2 | |||||||
Othernet |
41 | 242 | 16.9 | |||||||||
Total other income (expenses) |
(70 | ) | (674 | ) | 10.4 | |||||||
Income from continuing operations before income taxes |
8,199 | 9,205 | 89.1 | |||||||||
Income taxes |
3,937 | 3,832 | 102.7 | |||||||||
Minority interest in earnings of subsidiaries |
(270 | ) | (282 | ) | 95.7 | |||||||
Equity in losses of affiliated companies |
(680 | ) | (284 | ) | 239.4 | |||||||
Income from continuing operations |
3,312 | 4,807 | 68.9 | |||||||||
Income from discontinued operations, net of tax |
| 4,729 | | |||||||||
Net income |
¥ | 3,312 | ¥ | 9,536 | 34.7 | % | ||||||
(In millions of yen)
Six months ended September 30 |
||||||||||||
% to | ||||||||||||
2004 |
2003 |
prior year |
||||||||||
Operating revenue: |
||||||||||||
Net sales |
¥ | 338,308 | ¥ | 311,578 | 108.6 | % | ||||||
Royalty revenue |
6,739 | 8,404 | 80.2 | |||||||||
Total operating revenue |
345,047 | 319,982 | 107.8 | |||||||||
Operating costs and expenses: |
||||||||||||
Cost of sales |
250,878 | 219,328 | 114.4 | |||||||||
Selling, general and administrative |
80,896 | 83,096 | 97.4 | |||||||||
Total operating costs and expenses |
331,774 | 302,424 | 109.7 | |||||||||
Operating income from continuing operations |
13,273 | 17,558 | 75.6 | |||||||||
Other income (expenses): |
||||||||||||
Interest income |
790 | 730 | 108.2 | |||||||||
Foreign exchange loss |
(1,161 | ) | (1,005 | ) | 115.5 | |||||||
Interest expense |
(689 | ) | (1,186 | ) | 58.1 | |||||||
Othernet |
225 | 488 | 46.1 | |||||||||
Total other income (expenses) |
(835 | ) | (973 | ) | 85.8 | |||||||
Income from continuing operations before income taxes |
12,438 | 16,585 | 75.0 | |||||||||
Income taxes |
5,544 | 6,820 | 81.3 | |||||||||
Minority interest in earnings of subsidiaries |
(560 | ) | (168 | ) | 333.3 | |||||||
Equity in losses of affiliated companies |
(1,525 | ) | (1,761 | ) | 86.6 | |||||||
Income from continuing operations |
4,809 | 7,836 | 61.4 | |||||||||
Income from discontinued operations, net of tax |
| 4,639 | | |||||||||
Net income |
¥ | 4,809 | ¥ | 12,475 | 38.5 | % | ||||||
Pioneer Corporation and Subsidiaries
(3) | CONSOLIDATED BALANCE SHEETS |
(In millions of yen)
September 30 |
March 31 |
|||||||||||||||||||
Increase/ | Increase/ | |||||||||||||||||||
2004 |
2003 |
(Decrease) |
2004 |
(Decrease) |
||||||||||||||||
ASSETS |
||||||||||||||||||||
Current assets: |
||||||||||||||||||||
Cash and cash equivalents |
¥ | 123,936 | ¥ | 137,936 | ¥ | (14,000 | ) | ¥ | 192,419 | ¥ | (68,483 | ) | ||||||||
Trade receivables, less allowance |
119,863 | 102,912 | 16,951 | 112,055 | 7,808 | |||||||||||||||
Inventories |
135,504 | 110,316 | 25,188 | 107,806 | 27,698 | |||||||||||||||
Others |
74,711 | 65,763 | 8,948 | 67,508 | 7,203 | |||||||||||||||
Total current assets |
454,014 | 416,927 | 37,087 | 479,788 | (25,774 | ) | ||||||||||||||
Investments and long-term receivables |
29,553 | 28,360 | 1,193 | 33,725 | (4,172 | ) | ||||||||||||||
Property, plant and equipment,
less depreciation |
208,964 | 154,319 | 54,645 | 156,201 | 52,763 | |||||||||||||||
Intangible assets |
25,590 | 17,403 | 8,187 | 18,966 | 6,624 | |||||||||||||||
Other assets |
39,015 | 42,817 | (3,802 | ) | 33,862 | 5,153 | ||||||||||||||
Total assets |
¥ | 757,136 | ¥ | 659,826 | ¥ | 97,310 | ¥ | 722,542 | ¥ | 34,594 | ||||||||||
LIABILITIES AND SHAREHOLDERS EQUITY |
||||||||||||||||||||
Current liabilities: |
||||||||||||||||||||
Short-term borrowings and current
portion of long-term debt |
¥ | 40,615 | ¥ | 35,594 | ¥ | 5,021 | ¥ | 27,837 | ¥ | 12,778 | ||||||||||
Trade payables |
103,031 | 78,526 | 24,505 | 79,439 | 23,592 | |||||||||||||||
Others |
104,554 | 108,607 | (4,053 | ) | 116,022 | (11,468 | ) | |||||||||||||
Total current liabilities |
248,200 | 222,727 | 25,473 | 223,298 | 24,902 | |||||||||||||||
Long-term debt |
87,397 | 28,528 | 58,869 | 89,691 | (2,294 | ) | ||||||||||||||
Other long-term liabilities |
58,909 | 71,944 | (13,035 | ) | 58,771 | 138 | ||||||||||||||
Minority interests |
18,281 | 17,728 | 553 | 17,844 | 437 | |||||||||||||||
Shareholders equity: |
||||||||||||||||||||
Common stock |
49,049 | 49,049 | | 49,049 | | |||||||||||||||
Capital surplus |
82,612 | 82,294 | 318 | 82,464 | 148 | |||||||||||||||
Retained earnings |
276,334 | 263,548 | 12,786 | 273,718 | 2,616 | |||||||||||||||
Accumulated other comprehensive loss |
(53,185 | ) | (65,535 | ) | 12,350 | (61,829 | ) | 8,644 | ||||||||||||
Treasury stock |
(10,461 | ) | (10,457 | ) | (4 | ) | (10,464 | ) | 3 | |||||||||||
Total shareholders equity |
344,349 | 318,899 | 25,450 | 332,938 | 11,411 | |||||||||||||||
Total liabilities and
shareholders equity |
¥ | 757,136 | ¥ | 659,826 | ¥ | 97,310 | ¥ | 722,542 | ¥ | 34,594 | ||||||||||
Breakdown of accumulated other comprehensive
income (loss) |
||||||||||||||||||||
Minimum pension liability adjustments |
¥ | (21,714 | ) | ¥ | (31,578 | ) | ¥ | 9,864 | ¥ | (22,930 | ) | ¥ | 1,216 | |||||||
Net unrealized holding gain on securities |
7,516 | 5,715 | 1,801 | 9,103 | (1,587 | ) | ||||||||||||||
Cumulative foreign currency translation
adjustments |
(38,987 | ) | (39,672 | ) | 685 | (48,002 | ) | 9,015 | ||||||||||||
Total accumulated other
comprehensive income (loss) |
¥ | (53,185 | ) | ¥ | (65,535 | ) | ¥ | 12,350 | ¥ | (61,829 | ) | ¥ | 8,644 | |||||||
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 |
Loss |
Stock |
Equity |
|||||||||||||||||||
Balance at March 31, 2003 |
¥ | 49,049 | ¥ | 82,159 | ¥ | 253,266 | ¥ | (55,629 | ) | ¥ | (10,452 | ) | ¥ | 318,393 | ||||||||||
Net income |
24,838 | 24,838 | ||||||||||||||||||||||
Other comprehensive loss |
(6,200 | ) | (6,200 | ) | ||||||||||||||||||||
Value ascribed to stock options |
305 | 305 | ||||||||||||||||||||||
Cash dividends (¥25 per share) |
(4,386 | ) | (4,386 | ) | ||||||||||||||||||||
Purchase and sales of treasury
stock, net |
(12 | ) | (12 | ) | ||||||||||||||||||||
Balance at March 31, 2004 |
¥ | 49,049 | ¥ | 82,464 | ¥ | 273,718 | ¥ | (61,829 | ) | ¥ | (10,464 | ) | ¥ | 332,938 | ||||||||||
Net income |
4,809 | 4,809 | ||||||||||||||||||||||
Other comprehensive income |
8,644 | 8,644 | ||||||||||||||||||||||
Value ascribed to stock options |
147 | 147 | ||||||||||||||||||||||
Cash dividends (¥12.5 per share) |
(2,193 | ) | (2,193 | ) | ||||||||||||||||||||
Purchase and sales of treasury
stock, net |
1 | 3 | 4 | |||||||||||||||||||||
Balance at September 30, 2004 |
¥ | 49,049 | ¥ | 82,612 | ¥ | 276,334 | ¥ | (53,185 | ) | ¥ | (10,461 | ) | ¥ | 344,349 | ||||||||||
(5) | CONSOLIDATED STATEMENTS OF CASH FLOWS |
(In millions of yen)
Three months ended | Six months ended | |||||||||||||||
September 30 |
September 30 |
|||||||||||||||
2004 |
2003 |
2004 |
2003 |
|||||||||||||
I. Operating activities: |
||||||||||||||||
Net income |
¥ | 3,312 | ¥ | 9,536 | ¥ | 4,809 | ¥ | 12,475 | ||||||||
Income from discontinued operations, net of tax |
| (4,729 | ) | | (4,639 | ) | ||||||||||
Depreciation and amortization |
10,778 | 9,824 | 21,287 | 18,843 | ||||||||||||
(Increase) decrease in trade receivables |
(8,194 | ) | (8,000 | ) | 415 | 922 | ||||||||||
Increase in inventories |
(6 | ) | (6,074 | ) | (18,814 | ) | (20,984 | ) | ||||||||
Increase (decrease) in trade payables |
(76 | ) | 5,894 | 7,168 | 15,064 | |||||||||||
Increase (decrease) in other accrued liabilities |
1,545 | 13,157 | (11,185 | ) | 5,105 | |||||||||||
Other |
(5,714 | ) | (2,802 | ) | (7,711 | ) | (3,675 | ) | ||||||||
Net cash provided by (used in) operating activities |
1,645 | 16,806 | (4,031 | ) | 23,111 | |||||||||||
II. Investing activities: |
||||||||||||||||
Payment for purchase of fixed assets |
(12,646 | ) | (17,161 | ) | (26,284 | ) | (28,121 | ) | ||||||||
Payment for purchase of subsidiary |
(36,615 | ) | | (36,615 | ) | | ||||||||||
Other |
(17 | ) | 3,301 | 338 | 3,623 | |||||||||||
Net cash used in investing activities |
(49,278 | ) | (13,860 | ) | (62,561 | ) | (24,498 | ) | ||||||||
III. Financing activities: |
||||||||||||||||
Increase (decrease) in short-term borrowings
and long-term debt |
1,035 | 3,976 | (3,034 | ) | 4,610 | |||||||||||
Dividends paid |
| | (2,193 | ) | (1,754 | ) | ||||||||||
Other |
(220 | ) | (2 | ) | (323 | ) | (191 | ) | ||||||||
Net cash provided by (used in) financing activities |
815 | 3,974 | (5,550 | ) | 2,665 | |||||||||||
Effect of exchange rate changes on cash
and cash equivalents |
1,792 | (5,784 | ) | 3,659 | (5,822 | ) | ||||||||||
Net increase (decrease) in cash and cash equivalents |
(45,026 | ) | 1,136 | (68,483 | ) | (4,544 | ) | |||||||||
Cash and cash equivalents, beginning of period |
168,962 | 136,800 | 192,419 | 142,480 | ||||||||||||
Cash and cash equivalents, end of period |
¥ | 123,936 | ¥ | 137,936 | ¥ | 123,936 | ¥ | 137,936 | ||||||||
Free cash flow (I + II) |
¥ | (47,633 | ) | ¥ | 2,946 | ¥ | (66,592 | ) | ¥ | (1,387 | ) | |||||
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 months ended September 30 |
||||||||||||||||||||||||
2004 |
2003 |
% to prior year |
||||||||||||||||||||||
Operating | Operating | Operating | Operating | Operating | Operating | |||||||||||||||||||
Revenue |
Income |
Revenue |
Income |
Revenue |
Income |
|||||||||||||||||||
Home Electronics |
¥ | 72,226 | ¥ | 405 | ¥ | 67,259 | ¥ | 765 | 107.4 | % | 52.9 | % | ||||||||||||
Car Electronics |
75,401 | 4,620 | 67,407 | 6,205 | 111.9 | 74.5 | ||||||||||||||||||
Patent Licensing |
4,318 | 3,843 | 5,520 | 4,930 | 78.2 | 78.0 | ||||||||||||||||||
Others |
42,970 | 937 | 37,472 | 893 | 114.7 | 104.9 | ||||||||||||||||||
Total |
194,915 | 9,805 | 177,658 | 12,793 | 109.7 | 76.6 | ||||||||||||||||||
Corporate and eliminations |
(13,355 | ) | (1,536 | ) | (10,145 | ) | (2,914 | ) | | | ||||||||||||||
Consolidated |
¥ | 181,560 | ¥ | 8,269 | ¥ | 167,513 | ¥ | 9,879 | 108.4 | % | 83.7 | % | ||||||||||||
(In millions of yen)
Six months ended September 30 |
||||||||||||||||||||||||
2004 |
2003 |
% to prior year |
||||||||||||||||||||||
Operating | Operating | Operating | Operating | Operating | Operating | |||||||||||||||||||
Revenue |
Income |
Revenue |
Income |
Revenue |
Income |
|||||||||||||||||||
Home Electronics |
¥ | 124,722 | ¥ | (3,389 | ) | ¥ | 118,920 | ¥ | (3,599 | ) | 104.9 | % | | % | ||||||||||
Car Electronics |
155,002 | 10,877 | 142,491 | 14,115 | 108.8 | 77.1 | ||||||||||||||||||
Patent Licensing |
7,580 | 6,767 | 9,373 | 8,219 | 80.9 | 82.3 | ||||||||||||||||||
Others |
80,225 | 1,441 | 69,146 | 159 | 116.0 | 906.3 | ||||||||||||||||||
Total |
367,529 | 15,696 | 339,930 | 18,894 | 108.1 | 83.1 | ||||||||||||||||||
Corporate and eliminations |
(22,482 | ) | (2,423 | ) | (19,948 | ) | (1,336 | ) | | | ||||||||||||||
Consolidated |
¥ | 345,047 | ¥ | 13,273 | ¥ | 319,982 | ¥ | 17,558 | 107.8 | % | 75.6 | % | ||||||||||||
<Geographic Segments>
(In millions of yen)
Six months ended September 30 |
||||||||||||||||||||||||
2004 |
2003 |
% to prior year |
||||||||||||||||||||||
Operating | Operating | Operating | Operating | Operating | Operating | |||||||||||||||||||
Revenue |
Income |
Revenue |
Income |
Revenue |
Income |
|||||||||||||||||||
Japan |
¥ | 292,347 | ¥ | 6,553 | ¥ | 262,900 | ¥ | 6,343 | 111.2 | % | 103.3 | % | ||||||||||||
North America |
84,058 | 3,245 | 86,686 | 8,607 | 97.0 | 37.7 | ||||||||||||||||||
Europe |
66,208 | (1,063 | ) | 62,499 | (341 | ) | 105.9 | | ||||||||||||||||
Other Regions |
143,206 | 3,842 | 131,635 | 4,393 | 108.8 | 87.5 | ||||||||||||||||||
Total |
585,819 | 12,577 | 543,720 | 19,002 | 107.7 | 66.2 | ||||||||||||||||||
Corporate and eliminations |
(240,772 | ) | 696 | (223,738 | ) | (1,444 | ) | | | |||||||||||||||
Consolidated |
¥ | 345,047 | ¥ | 13,273 | ¥ | 319,982 | ¥ | 17,558 | 107.8 | % | 75.6 | % | ||||||||||||
Pioneer Corporation and Subsidiaries
Notes:
1. | The Companys 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 128 subsidiaries and the investments in 5 affiliated companies accounted for on an equity basis. | |||
3. | As a result of the sales of subsidiaries in the audio/video software business in fiscal 2004, the gain on such sales, as well as the operating results of the discontinued operations, are presented as a separate line item in consolidated statements of income in accordance with Statement of Financial Accounting Standards No. 144, Accounting for the Impairment or Disposal of Long-Lived Assets. Reclassifications have been made to consolidated statements of cash flows and segment information to conform to this presentation. | |||
4. | At the year end of fiscal 2004, the Company changed business segment classification for certain businesses. Results related to recordable DVD drives have been moved from Others to Home Electronics, and results related to plasma displays for business use have been moved from Home Electronics to Others. Corresponding figures for the previously reported operating revenue by segment and segment information have been reclassified accordingly. |
Pioneer CorporationParent Company Only
II. | NON-CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2004 |
|||
(1) | SALES BY PRODUCT GROUP |
(In millions of yen)
Six months ended September 30 |
||||||||||||||||||||
2004 |
2003 |
|||||||||||||||||||
% to | % to | % to | ||||||||||||||||||
Amount |
total |
Amount |
total |
prior year |
||||||||||||||||
Domestic |
¥ | 30,534 | 13.0 | % | ¥ | 26,491 | 12.2 | % | 115.3 | % | ||||||||||
Export |
70,140 | 30.0 | 67,725 | 31.5 | 103.6 | |||||||||||||||
Home Electronics |
100,674 | 43.0 | 94,217 | 43.7 | 106.9 | |||||||||||||||
Domestic |
60,907 | 26.1 | 55,788 | 25.9 | 109.2 | |||||||||||||||
Export |
62,084 | 26.5 | 55,195 | 25.5 | 112.5 | |||||||||||||||
Car Electronics |
122,991 | 52.6 | 110,984 | 51.4 | 110.8 | |||||||||||||||
Domestic |
2,830 | 1.2 | 3,434 | 1.6 | 82.4 | |||||||||||||||
Export |
7,542 | 3.2 | 7,167 | 3.3 | 105.2 | |||||||||||||||
Others |
10,373 | 4.4 | 10,601 | 4.9 | 97.8 | |||||||||||||||
Domestic |
94,272 | 40.3 | 85,715 | 39.7 | 110.0 | |||||||||||||||
Export |
139,767 | 59.7 | 130,088 | 60.3 | 107.4 | |||||||||||||||
Total |
¥ | 234,039 | 100.0 | % | ¥ | 215,803 | 100.0 | % | 108.5 | % | ||||||||||
(2) | CONDENSED STATEMENTS OF OPERATIONS |
(In millions of yen)
Six months ended September 30 |
||||||||||||||||
2004 |
2003 |
|||||||||||||||
% to | % to | |||||||||||||||
Amount |
net sales |
Amount |
net sales |
|||||||||||||
Net sales |
¥ | 234,039 | 100.0 | % | ¥ | 215,803 | 100.0 | % | ||||||||
Cost of sales |
191,874 | 82.0 | 168,143 | 77.9 | ||||||||||||
Selling, general and administrative expenses |
41,981 | 17.9 | 44,227 | 20.5 | ||||||||||||
Operating income |
183 | 0.1 | 3,432 | 1.6 | ||||||||||||
Non-operating income (expenses)net |
2,098 | 0.9 | 132 | 0.1 | ||||||||||||
Ordinary income |
2,282 | 1.0 | 3,565 | 1.7 | ||||||||||||
Other expensesnet |
(0 | ) | (0.0 | ) | (6,050 | ) | (2.8 | ) | ||||||||
Income (loss) before income taxes |
2,281 | 1.0 | (2,485 | ) | (1.2 | ) | ||||||||||
Income taxes |
141 | 0.1 | (1,418 | ) | (0.7 | ) | ||||||||||
Net income (loss) |
¥ | 2,140 | 0.9 | % | ¥ | (1,066 | ) | (0.5 | %) | |||||||
Pioneer CorporationParent Company Only
(3) | CONDENSED BALANCE SHEETS |
(In millions of yen)
September 30 |
March 31 | |||||||||||
2004 |
2003 |
2004 |
||||||||||
ASSETS |
||||||||||||
Current assets: |
||||||||||||
Cash |
¥ | 33,829 | ¥ | 29,100 | ¥ | 73,134 | ||||||
Notes and accounts receivabletrade |
38,018 | 37,899 | 43,582 | |||||||||
Marketable securities |
18,683 | 18,782 | 32,685 | |||||||||
Inventories |
34,733 | 29,874 | 31,183 | |||||||||
Other current assets |
64,070 | 30,992 | 27,781 | |||||||||
Total current assets |
189,336 | 146,650 | 208,368 | |||||||||
Fixed assets: |
||||||||||||
Tangible |
48,282 | 39,443 | 42,913 | |||||||||
Intangible |
21,335 | 16,769 | 20,075 | |||||||||
Investments and others |
204,768 | 190,020 | 190,207 | |||||||||
Total fixed assets |
274,386 | 246,233 | 253,196 | |||||||||
Total assets |
¥ | 463,722 | ¥ | 392,883 | ¥ | 461,564 | ||||||
LIABILITIES AND SHAREHOLDERS EQUITY |
||||||||||||
Current liabilities: |
||||||||||||
Notes and accounts payabletrade |
¥ | 50,129 | ¥ | 45,533 | ¥ | 40,987 | ||||||
Accrued expenses |
34,730 | 38,348 | 40,953 | |||||||||
Other current liabilities |
26,766 | 10,017 | 12,123 | |||||||||
Total current liabilities |
111,627 | 93,898 | 94,064 | |||||||||
Long-term liabilities |
76,100 | 28,996 | 90,074 | |||||||||
Total liabilities |
187,727 | 122,895 | 184,139 | |||||||||
Shareholders equity |
275,995 | 269,988 | 277,425 | |||||||||
Total liabilities and shareholders equity |
¥ | 463,722 | ¥ | 392,883 | ¥ | 461,564 | ||||||