JVC 2004 Annual Report Download - page 35

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Annual Report 2004 33.
Net Sales
Net sales for fiscal 2004, ended March 31, 2004, declined
4.7%, or ¥45.7 billion, to ¥922.0 billion. Domestic net sales
fell 8.3% year on year, to ¥302.0 billion, as a larger-than-
expected fall in sales of analog products such as video
recorders cancelled out stronger sales of newly launched
digital products such as DVD recorders and flat-panel TVs.
Although sales in Europe and Asia were comparatively
robust, sales of CRT TVs and VHS video recorders dropped
in the Americas, leading to a 2.8% decline in total overseas
sales to ¥620.0 billion.
Cost of Sales and SG&A Expenses
Cost of sales declined 5.9%, or ¥39.7 billion, to ¥629.1
billion. Consequently, the cost of sales ratio declined from
69.1% in the previous fiscal year, to 68.2%. SG&A (selling,
general and administrative) expenses fell 3.2%, or ¥8.8
billion, to ¥267.7 billion. As a percentage of net sales,
SG&A expenses rose from 28.6% in the previous fiscal
year, to 29.0%.
Financial Review
Net Sales by Segment
Billions of yen
Consumer Professional Components
electronics electronics & Devices Software & Media Other
business business business business business Total
2004
Sales ¥638.1 ¥ 67.5 ¥62.0 ¥148.0 ¥ 6.4 ¥922.0
Share 69.2 % 7.3 % 6.7% 16.1 % 0.7 % 100.0 %
Change (5.5)% (4.9)% 30.3% (11.6)% (1.5)% (4.7)%
Domestic Sales ¥109.4 ¥ 49.9 ¥ 4.0 ¥132.4 ¥ 6.3 ¥302.0
Change (10.4)% 2.9 % 11.1% (11.2)% 1.6 % (8.3)%
Overseas Sales ¥528.7 ¥ 17.6 ¥58.0 ¥ 15.6 ¥ 0.1 ¥620.0
Change (4.4)% (21.8)% 31.8% (15.2)% (66.7)% (2.8)%
2003
Sales ¥675.0 ¥ 71.0 ¥47.6 ¥167.5 ¥ 6.5 ¥967.6
Share 69.8 % 7.3 % 4.9% 17.3 % 0.7 % 100.0 %
Major Products VCRs, Professional-use Components for Audio and visual Interior furniture and
camcorders, and educational- use in computer software production facilities
televisions, use systems, displays, including CDs,
stereo systems, information optical pickups, DVDs and
car AV systems, systems, motors videotapes, and
DVD players, DVD karaoke and VIL PWBs recording media
recorders and systems and
CD portable projectors
systems
Operating Income
JVC posted operating income of ¥25.2 billion, 12.8%, or
¥2.9 billion up on fiscal 2003. This increase was primarily
supported by strong showings from the Consumer
Electronics and Software & Media segments, as well as
reductions in procurement and other costs, and beneficial
movements in exchange rates.
SEGMENT INFORMATION
Consumer Electronics
Although segment sales declined 5.5%, or ¥36.9 billion,
to ¥638.1 billion, operating income grew 2.1%, or ¥0.5
billion, to ¥25.8 billion. In Japan and the Americas, the
segment saw higher sales of digital products such as DVD
recorders and flat-panel TVs, but this failed to cover a drop
in demand for analog products such as video recorders
and CRT TVs, resulting in an overall decline in sales in
these regions. In Europe and Asia, sales grew steadily as
rising sales of DVD players, car AV systems and other
products more than offset struggling product categories
such as AV systems, CRT TVs, and video recorders.