Audio Video News

So far, 2002 has been a better year than 2001 was for most large electronics manufacturers, according to the July 31 reported first-quarter results. For most members of the electronics industry, the first fiscal quarter runs April 1 through June 30.

Among the winners: Matsushita Electric Industrial Co., whose net profits rose to ¥4.34 billion ($36.0 million) in the first quarter, compared with a ¥19.37 billion ($160 million) loss a year ago, boosted by strong performance by its audio/video lines. Matsushita has revised predictions for the year, estimating net profit at ¥17 billion ($140.5 million), up from ¥2 billion ($16.5 million) for last year, and with sales estimated at ¥3.57 trillion ($29.5 billion) from ¥3.46 trillion.

Pioneer enjoyed a robust first quarter, with revenue from its home electronics division—audio, video, cable TV, and home telephones—rising 15.7% to $379.1 million, up from $328.4 million in the first quarter of last year. The company, one of the most widely recognized names in the high-rez display arena, benefited from the growing popularity of plasma screens. Pioneer's foreign sales rose by 2.3% to $250.6 million, up from $245.7 million; total revenue for the first quarter was up 18.2% to $1.4 billion, from $1.2 billion in 2001. Operating income jumped an astounding 47.9%, to $63.6 million from $43.1 million in the prior-year period, but net income dropped by 10.3% due to foreign exchange losses. For 2002, Pioneer is projecting revenue of $6 billion, operating income of $208.8 million and net income of $91.9 million.

Sharp Corporation posted a 40% increase in net profit over Q1 2002, to ¥12.3 billion ($106.3 million), with sales up 10% to ¥477.38 billion ($3.9 million). Strong performers for Sharp included its liquid-crystal-display televisions sets and mobile telephones. The company predicts a full-year net profit of ¥37 billion ($306 million) on sales of ¥2 trillion ($16.5 billion).

Sanyo Electric Company's net profit dropped 9.8% to ¥3.59 billion ($29.6 million) in the first quarter from a year ago, due to higher corporate tax payments, but sales rose 1.1% to ¥507.61 billion ($4.23 billion). A/V equipment sales were up one percent over the same period in 2001. Overall operating income in the first quarter increased 2.6% to $124.4 million, compared with $121.2 million in the same period last year. Sanyo is sticking by its original predictions for the year: net profit of ¥25 billion ($20.6 million) on sales of ¥2.1 trillion ($17.3 billion).

DVD players, television equipment, and computers are all hot tickets for Toshiba, which posted an 18% rise in net profits on sales of $3.1 billion during the first quarter. Toshiba's digital media group, which includes consumer electronics products, reported operating income of $6.3 million for the first quarter. The result was a huge reversal of the $60.9 million operating loss Toshiba posted for the first quarter of 2001. North American sales rose 16%, reaching $1.7 billion for the period, compared with $1.5 billion for the same period last year. Total sales were up 2%, to $9.9 billion, compared with $9.7 billion in the same quarter in 2001. Despite the rising sales figures, Toshiba reported an operating loss of $218.8 million for the first quarter, substantially less than the $334.7 million operating loss it reported in the first quarter last year. Toshiba claims it will reach profitability this year, with a projected fiscal year profit of $191 million on sales of $49 billion. The company is banking heavily on an improving economy in the US.

Digital optical storage products and plasma televisions helped push Hitachi’s consumer electronics results up for the first quarter, by 4% to $2.5 billion, compared with $2.4 billion in the same period a year ago. Audio and videotape sales through Hitachi's Maxell division declined, as expected, but other forms of media sold well. Hitachi’s CE operation posted operating income of $55 million for the first three months ended June 30, compared with an operating loss of $5.6 million in the first quarter of 2001. Hitachi's North America sales dropped 3% to $1.8 billion, down from $1.9 billion last year. Overall sales declined 4%, hitting $15.5 billion, down from $16.2 billion in the same three months last year. Hitachi's operating income of $114 million for its first quarter reversed its operating loss of $91.2 million from the comparable period last year. The company projects slightly declining sales, down by around 2%, for the six months ending September 30, 2002.

Tape and disc maker TDK saw its recording media sales rise by 2.1% during the quarter, to $254.5 million, up from $249.6 million in the first period in 2001. Demand for audio tape declined, but video tape sales rose slightly. The increasing popularity of DVD and CD formats helped TDK turn around an operating loss of $13.6 million posted in the same quarter in 2001. North American sales were up 8.3% to $243.3 million, from $224.9 million in the same period a year ago. Overall, TDK sales in the first quarter were up 6% to $1.24 billion, an increase from $1.17 billion in the same three months last year. Operating income for the period rose 131.2%, to $49.9 million, compared with $21.6 million in the first quarter in 2001, with net income up 79% to $18 million, from $10.1 million for Q1 last year. TDK is not anticipating any dramatic improvement in the US economic picture, and is sticking by its projection of net income of $108.4 million on $4.8 billion in net sales for the fiscal year ending March 31, 2003.