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UPDATE 2-Pioneer sees operating margin rise to 7% in 04/05

(Adds more information from briefing)

TOKYO, Nov 26 (Reuters) - Japan's Pioneer Corp said on Wednesday it expects a double-digit rise in revenues next business year, with an operating profit margin of seven percent, thanks to overseas growth in sales of DVD recorders and plasma display televisions.

Pioneer President Kaneo Ito told a news conference he expects the operating margin to rise from an estimated six percent in the current business year to March.

"We have a lot of products that have been mainly focused on the domestic market. But next year, we expect DVD recorders, plasma display televisions and car navigation systems to grow overseas," Ito told reporters.

The Tokyo-based consumer electronics firm said it targets sales of around one trillion yen ($9.14 billion), with an operating margin of eight percent, in the year starting on April 1, 2005.

Pioneer has avoided the effects of a downturn in traditional audiovisual electronics by focusing on DVD recorders, DVD drives used in personal computers, plasma display panel (PDP) televisions and car electronics systems such as navigation systems.

Bigger-name rivals such as Sony Corp have been hit by fading demand for bulky cathode ray tube televisions.

Pioneer forecasts that global demand for PDP televisions will rise to 2.1 million units in 2004/05 from 1.1 million units in 2003/04. The company only makes PDP televisions with screen widths of over 40 inches.

To meet that demand, Pioneer started PDP production at a third factory in August and expects the production line to be at full capacity by next year.

In car electronics, Pioneer will focus on boosting sales in emerging markets such as China, India and Brazil.

The world's largest maker of car electronics said it plans to establish a car audio subsidiary in Brazil to produce and sell products for the local market.

More than half of the company's consolidated profits come from its car electronics business.

In October, Pioneer lifted its group operating profit forecast for the year to next March s to 44 billion yen from 41 billion yen on sales of 730 billion yen, lowered from 760 billion yen.

Prior to Ito's comments, Pioneer shares closed Wednesday trade up 1.36 percent at 2,600 yen, compared with a 1.75 percent gain in the Tokyo stock market's electric machinery index . ($1=109.37 yen)