JVC 2007 Annual Report Download - page 33

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31
year-earlier level. In the United States, while HDD cam-
corder sales were brisk, sagging sales of D-ILA hybrid pro-
jection TVs and audio products, coupled with the shrinking
market for CRT TVs, caused overall segment sales in the
United States to contract compared with the prior-year
level. In Europe, despite brisk sales of HDD camcorders
and LCD TVs, total segment sales in the region were down
compared with the level of the previous year, reflecting a
falloff in sales of DVD recorders, a product category where
the lineup was cut back, weak sales of audio products, and
a downturn in CRT TV sales. In Asia excluding Japan, total
segment sales also dropped as an increase in HDD cam-
corder sales and a sharp expansion in LCD TV sales did not
fully counter slumping sales of CRT TVs and audio products.
Professional Electronics
Sales decreased 5.3%, to ¥64.0 billion, but operating
income increased ¥300 million, to ¥1.0 billion. Overseas
sales of high-definition video camera recorders targeted at
professional users and security-related equipment were
robust, but segment sales declined due to sluggish domes-
tic sales of commercial-use audio equipment.
Components & Devices
Segment sales rose 17.7%, to ¥35.6 billion, and the seg-
ment posted an operating loss of ¥1.0 billion, a ¥1.1 billion
turnaround compared with operating income of ¥0.1 billion
in the prior fiscal year. Higher segment sales reflected
growth in sales of hard disk drive motors and optical pick-
ups used in vehicles.
aforementioned negative factors. Consequently, the
Company recorded an operating loss of ¥5.7 billion in the
fiscal year under review, for a ¥1.2 billion improvement from
the ¥6.9 billion operating loss a year earlier.
As for other income (expenses), the Company booked
¥1.7 billion in restructuring charges associated with overseas
subsidiaries, ¥4.2 billion in interest expense, and ¥1.8 billion
in expenses for asset write-offs. Income before income taxes
and minority interests was ¥2.6 billion, which represents
a¥24.7 billion improvement from the prior fiscal year.
Reflecting higher corporate, inhabitant, and enterprise
taxes as well as the reevaluation of deferred tax assets and
other factors, income taxes amounted to ¥10.7 billion, and
the Company recorded a net loss of ¥7.9 billion for the fis-
cal year under review, compared with a net loss of ¥30.6
billion in fiscal 2006.
In view of this weak performance in fiscal 2007, the
Company has regretfully decided to temporarily suspend
the distribution of cash dividends.
Consumer Electronics
Sales in this segment fell 9.5%, to ¥543.3 billion, and the
segment posted an operating loss of ¥3.4 billion, which is a
¥6.2 billion improvement from the year earlier. In Japan, the
Company’s share of the camcorder market increased, and
its camcorder sales grew thanks to its hard disk camcorder
models, but the whittling back of the DVD recorder lineup
led to lower sales in this category, and sales of audio prod-
ucts and LCD TVs also declined. Consequently, total
domestic segment sales were down compared with the
SEGMENT INFORMATION