Kenwood 2003 Annual Report Download - page 12

Car Electronics
Sales
Operating income
Home Electronics
Sales
Operating income
Wireless Radio
Sales
Operating income
Others
Sales
Operating income
Total
Net sales
Operating income
122.8
5.7
82.7
△ 7.3
38.9
7.6
58.3
0.1
302.6
6.1
117
11.7
41.9
△ 4.5
36.5
7.3
30.2
△ 2.2
225.6
12.3
Audio-related business
Sales
Operating income
Communications-related business
Sales
Operating income
12.9
△ 0.4
45.3
0.5
5.7
△ 0.2
24.5
△ 2.1
Consolidated performance
by business segment
Fiscal year
ended March
2002
Fiscal year
ended March
2003
Fiscal year ended
March 2002 Fiscal year ended March 2003
△ 5.8
6
△ 40.8
2.8
△ 2.4
△ 0.4
△ 28.1
△ 2.3
△ 77
6.2
Year-on-year
comparison
(Note) Performance of other businesses
(Billions of yen)
During the fiscal year ended March 2003, the business climate for
the Company remained sluggish in general, hurt by weakened
capital spending and consumer spending amid falling stock prices
and prolonged deflation worldwide, although the economy
displayed some signs of recovery in the first half of the fiscal year.
The European economy moderately picked up, while the
economies in Japan and the Americas remained sluggish due to
uncertain prospects.
Under such circumstances, the electronics industry suffered
from sliding prices throughout the world. To cope with the
situation, the Company endeavored to strengthen financial
standing, by carrying out a drastic restructuring under the
Kenwood Revitalization Action Plan.
Exceeding figures projected on April 23, 2003, consolidated net
balance marked a record income, achieving a "V-shaped"
recovery from the previous fiscal year, when the Company
registered a huge loss for three consecutive years.
Consolidated results
In the fiscal year ended March 2003, sales of car electronic
products fared well overseas, which, however, was offset by the
adverse effects of the sluggish economy in Japan as well as the
phasing out of cellular phone production and the home
electronics business in Asia. As a result, consolidated net sales
declined 25.5% on the fiscal year to 225.6 billion yen from 302.6
billion yen in the previous fiscal year.
However, operating income soared 100%, or 6.2 billion yen, to
12.3 billion yen. The strong performance is attributed to robust
results at the three core businesses: earnings of the car
electronics business grew rapidly; the home electronics business
actually became profitable; and the wireless radio operations
remained steady. On top of this, effects of the overhaul of our
business and cost structures contributed to income.
Ordinary income surged 570%, or 6 billion yen, to 7.1 billion
yen, with non-operating loss, such as accrued interest,
subtracted from operating income.
Meanwhile, the Company booked an evaluation loss on its
investment securities and a loss on disposal of fixed assets
associated with the consolidation of overseas production
subsidiaries. Despite this, the Company achieved a "V-shaped"
recovery in its net balance, posting a net income of 4.2 billion yen
(an improvement of 30.9 billion yen from a year earlier), in stark
contrast with the third consecutive year of large loss. The figure
is a record high, exceeding the 4.1 billion yen posted in the fiscal
year ended November 1999.
Sales and earnings by business segment
Business
Results
Overview
Sales and earnings
— Consolidated net income hits record
10 KENWOOD Corporation Annual Report 2003