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16 KENWOOD Corporation Annual Report 2003
Financial Review
Car Electronics
While sales of car electronics products declined 4.7% from the
previous fiscal year to 117 billion yen in the fiscal year ended
March 2003, operating income from this segment almost
doubled to 11.7 billion yen primarily due to strong demand in
Japan and Europe.
Communications Equipment
In the fiscal year under review, sales of communications
equipment fell 27.5% from a year earlier to 61 billion yen, and
operating income decreased 2.9 billion yen to 5.2 billion yen,
hurt by the phasing out of cellular phone production in Japan,
despite robust sales of wireless radio products.
Cellular Phones and Home Telephones
As sales of cellular phones and home telephones for the fiscal
year ended March 2003 slid 45.9% to 24.5 billion yen, an
operating loss of 2.1 billion yen was recorded, in contrast to the
0.5 billion yen income of the previous fiscal year. The cell
phone business was terminated in November 2002.
Wireless Radio
During the fiscal year ended March 2003, wireless radio
products, led by terrestrial mobile radio products, performed
well in the United States, Europe, Japan and the rest of Asia,
including China. However, sales dropped 6.1% to 36.5 billion
yen and operating income sagged 4.6% to 7.3 billion yen.
Financial Position
Assets and liabilities
By the end of March 2003, the total assets of the Kenwood
Group had declined 22.3% from the previous fiscal year to
142.1 billion yen. The current assets totaled 103.4 billion yen,
down 21.8%, as trade notes and accounts receivable as well
as inventories were reduced through the implementation of
various reconstruction measures, while fixed assets went down
by 16.2% to 27.4 billion yen. Investments and other assets
decreased 37% to 11.4 billion yen, owing largely to the disposal
of software for installation in cell phone terminals, which
business segment was terminated. On the other hand, current
liabilities stood at 108.4 billion yen, down 35.8% from a year
earlier, as a result of a debt-for-equity swap, reduction in
accounts payable, and reversal of provisions for losses from
Communications Equipment Sales
Sales of Cellular Phones & Telephones Sales of Wireless Radio
0
2003
2002
2001
2000
1999
20 40
(Billions of yen)
0
2003
20 40
2002
2001
2000
1999
(Billions of yen)
27.0%