UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

For the month of December, 2005

Commission File Number 1-7616

		PIONEER CORPORATION
	(Translation of registrant’s name into English)

		4-1, MEGURO 1-CHOME, MEGURO-KU, TOKYO 153-8654, JAPAN
	(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F:

Form 20-F þ                    Form 40-F o

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):                     

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):                     

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes o                    No þ

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-                    

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

This report on Form 6-K contains the followings:

1.		The English translation version of 60th Semiannual Business Report for the six-month period ended September 30, 2005.
2.		The notice regarding change in management of the Company.

 

(TRANSLATION)

THE 60TH SEMIANNUAL BUSINESS REPORT
For the Six Months Ended September 30, 2005

 

 

 

This is a translation of the original Semiannual Business Report written in the
Japanese language, prepared primarily for the benefit and information
of shareholders of the Company’s common stock.

 

PIONEER CORPORATION
Tokyo, Japan

TO OUR SHAREHOLDERS

In the first half of the 60th accounting period, ended September 30, 2005, consolidated operating revenue of Pioneer Corporation was ¥349,898 million, up 1.4% over the previous year.

However, net loss of ¥12,261 million was posted for the period, compared to net income of ¥4,809 million in the corresponding period of the previous year. This loss was principally caused by lower market prices for our main products due to more severe competition, resulting in a decrease of gross profit margins.

Reflecting the impact of continued severe business conditions, we have set interim dividend payments at ¥7.5 per share of common stock, a decrease of ¥5.0 from that for the corresponding period last year.

The business environment remains severe, characterized by uncertain economic conditions, particularly as the rising prices of crude oil and other raw materials may exert negative impact on the economies of Japan and the U.S., in which consumer spending had been steady. Also, price competition is increasingly tough in markets for our key products.

Despite these difficult conditions, we are committed to becoming profitable again by reviewing every aspect of our major business fields, reinvesting our resources in advanced, high-quality, value-added products that identify the core value of our Company, and enhancing our brand equity.

In the plasma display business, we have been reinforcing our production capacity, as the market rapidly expands. Incoming orders, however, did not reach the levels we had planned for in the OEM (original equipment manufacturing) plasma display business, so we decided to adjust total production output until demand recovers. As we keep cutting costs extensively, we will continue to develop and launch unique products of superior innovation, performance and function. We are making efforts to enhance the value and strength of the Pioneer brand and to expand plasma display sales.

In the DVD business, the market is rapidly expanding, especially in DVD recorders and DVD drives for personal computers (PCs), while product prices are falling sharply. To overcome the competition, we must introduce more advanced products as early as possible, in addition to carrying out more cost cutting in production in China. We are aggressively reviewing our development and design process, aiming to enhance speed and efficiency of development, and to precede our competitors in supplying markets with products that customers welcome.

In the car electronics business, we are determined to maintain a leading position in the consumer market by reinforcing our car audio operations in the fast-growing markets of China, Central and South America and Russia. Developing products that differentiate us from our industry competitors will help extend the value of our brand. Our car navigation operations are renowned in Japan, where our sales efforts are as aggressive as ever. We are making a similarly bold push

to fortify and extend our operations for this business in Europe and North America. In our business with automobile manufacturers, we are capitalizing on our product planning expertise in the consumer market, and propose innovative products to open up new business opportunities and increase sales.

Along with our ongoing efforts to improve management efficiency, we are advancing discussion on a restructuring that may include renewal of the Pioneer group business structure, as well as consequent consolidation of plants and offices and review of staffing. These measures, plus inventory reduction through better supply chain management, will help us return to profitability and improve cash flows.

We greatly appreciate the support that you have always given us. We are doing everything in our power to overcome the present difficulties and to improve shareholder value.

December 2005
Tokyo, Japan

		Kaneo Ito
		President and Representative Director

CONSOLIDATED OPERATING REVENUE BY BUSINESS SEGMENT

Effective from this 60th accounting period, the Company changed business segment classification for certain businesses. Results related to plasma displays for business use and DJ equipment have been moved from “Others” to “Home Electronics.” Previously reported amounts have been reclassified accordingly.

Percent of Operating Revenue

Six months ended September 30

Home Electronics

This segment includes plasma displays, DVD recorders, DVD players, DVD drives, stereo systems, individual stereo components, DJ equipment, telephones and equipment for cable TV systems.

Sales in the Home Electronics segment increased 9.4% from the corresponding period in the previous year to ¥144,958 million, as plasma display sales increased, despite a decrease in sales of DVD products.

     In Japan, sales decreased 2.3% to ¥36,068 million mainly due to a decrease in sales of DVD recorders, despite an increase in sales of plasma displays.

     Overseas sales increased 14.0% to ¥108,890 million, due to a rise in sales of plasma displays worldwide, and of DVD drives for PCs in Asia, despite the decline in sales of DVD drives for PCs in Europe and North America and the discontinuation of sales of cable TV set-top boxes in North America.

Car Electronics

This segment includes car navigation systems, car stereos, car AV (audio/video) systems and car speakers.

Sales in the Car Electronics segment amounted to ¥160,353 million, up 3.9% over the corresponding period in the previous year. Car audio product sales were good, although car navigation system sales decreased, due to lower sales in Japan of these systems to automobile manufacturers.

     In Japan, sales decreased 9.1% to ¥56,177 million, due to a decrease in sales of car navigation systems to automobile manufacturers, which reflected a lack of new car model launches in comparison to the corresponding period of the previous year, despite an increase in sales of car navigation systems for the consumer market.

     Overseas sales increased 12.6% to ¥104,176 million, due to growth in sales of car audio products and car navigation systems to automobile manufacturers in North America, and of car audio products for the consumer market in Central and South America and Europe.

Patent Licensing

This segment includes the licensing of patents related to laser optical disc technologies.

Royalty revenue from Patent Licensing decreased 21.6% from the corresponding period in the previous year to ¥5,285 million, reflecting the expiration of patents included in a portfolio of patents licensed to the optical disc industry and the lack of revenue from renewed contracts with licensees compared with the corresponding period of the previous year.

Others

This segment includes organic light-emitting diode (OLED) display panels, factory automation systems, electronics devices and parts, business-use AV systems.

Sales in this segment decreased 23.7% from the corresponding period in the previous year to ¥39,302 million, mainly as a result of a drop in sales of optical disc manufacturing systems in Asia.

     In Japan, sales decreased 21.2% to ¥19,918 million reflecting a sales shift from Japan to China of devices for cellular phones.

     Overseas, sales decreased 26.1% to ¥19,384 million, due to a drop in sales of optical disc manufacturing systems in Asia, despite an increase in sales of devices for cellular phones in China.

CONSOLIDATED FINANCIAL STATEMENTS
Pioneer Corporation and Subsidiaries

(1) Consolidated Balance Sheets

(In millions of yen)

		September 30
		2005				2004
Assets
Current assets:
Cash and cash equivalents		¥	107,198			¥	123,936
Trade receivables, less allowance			126,981				119,863
Inventories			126,594				135,504
Others			75,628				74,711
Total current assets			436,401				454,014
Investments and long-term receivables			25,268				29,553
Property, plant and equipment, less depreciation			203,557				208,964
Intangible assets			22,974				25,590
Other assets			39,393				39,015
Total assets		¥	727,593			¥	757,136
Liabilities and Shareholders’ Equity
Current liabilities:
Short-term borrowings and current portion of long-term debt		¥	55,560			¥	40,615
Trade payables			104,831				103,031
Others			101,857				104,554
Total current liabilities			262,248				248,200
Long-term debt			79,512				87,397
Other long-term liabilities			41,705				58,909
Minority interests			17,085				18,281
Shareholders’ equity:
Common stock			49,049				49,049
Capital surplus			82,834				82,612
Retained earnings			246,987				276,334
Accumulated other comprehensive loss			(39,390	)			(53,185	)
Treasury stock			(12,437	)			(10,461	)
Total shareholders’ equity			327,043				344,349
Total liabilities and shareholders’ equity		¥	727,593			¥	757,136

(2) Consolidated Statements of Operations

(In millions of yen except per share information)

		Six months ended
		September 30
		2005				2004
Revenues:
Operating revenue:
Net sales		¥	344,613			¥	338,308
Royalty revenue			5,285				6,739
Total operating revenue			349,898				345,047
Interest income			1,252				790
Other income			6,065				293
Total revenues			357,215				346,130
Cost and expenses:
Cost of sales			278,393				250,878
Selling, general and administrative expenses			87,893				80,771
Interest expense			720				689
Loss on sale and disposal of fixed assets			443				125
Other deductions			1,720				1,229
Total cost and expenses			369,169				333,692
Income (loss) before income taxes			(11,954	)			12,438
Income taxes			(1,210	)			5,544
Minority interest in losses (earnings) of subsidiaries			1,285				(560	)
Equity in losses of affiliated companies			(2,802	)			(1,525	)
Net income (loss)		¥	(12,261	)		¥	4,809
Net income (loss) per share:
Basic		¥	(70.29	)		¥	27.41
Diluted		¥	(70.29	)		¥	24.45

(3) Consolidated Statements of Cash Flows

(In millions of yen)

		Six months ended
		September 30
		2005				2004
Operating activities:
Net income (loss)		¥	(12,261	)		¥	4,809
Depreciation and amortization			24,122				21,287
Decrease in trade receivables			7,160				415
Increase in inventories			(14,635	)			(18,814	)
Increase in trade payables			8,016				7,168
Increase (decrease) in other accrued liabilities			2,737				(11,185	)
Other			(13,919	)			(7,711	)
Net cash provided by (used in) operating activities			1,220				(4,031	)
Investing activities:
Payment for purchase of fixed assets			(19,282	)			(26,284	)
Payment for purchase of subsidiary			—				(36,615	)
Other			7,357				338
Net cash used in investing activities			(11,925	)			(62,561	)
Financing activities:
Increase (decrease) in short-term borrowings and long-term debt			2,866				(3,034	)
Dividends paid			(2,180	)			(2,193	)
Other			(2,073	)			(323	)
Net cash used in financing activities			(1,387	)			(5,550	)
Effect of exchange rate changes on cash and cash equivalents			2,609				3,659
Net decrease in cash and cash equivalents			(9,483	)			(68,483	)
Cash and cash equivalents, beginning of period			116,681				192,419
Cash and cash equivalents, end of period		¥	107,198			¥	123,936

Notes:

1.		The Company’s consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP).
2.		The consolidated financial statements include the accounts of the parent company and 126 subsidiaries and the investments in 5 affiliated companies accounted for on an equity basis.
3.		Computation of net income per share is based on Statements of Financial Accounting Standards No.128 “Earnings per Share.”
4.		Effective from the fiscal 2005 year-end presentation, the Company changed the format of the consolidated statements of operations from multiple-step form to single-step form, which shows income before taxes by deducting total expenses from total revenue. Previously reported amounts have been reclassified accordingly.
5.		Effective from the fiscal 2005 year-end presentation, the Company presented “Loss on sale and disposal of fixed assets” separately in the consolidated statements of operations, which was previously included in “Selling, general and administrative expenses.” Previously reported amounts have been restated accordingly.

NON-CONSOLIDATED FINANCIAL STATEMENTS
Pioneer Corporation — Parent Company Only

(1)  Condensed Balance Sheets

		(In millions of yen)
		September 30
		2005				2004
Assets
Current assets:
Cash		¥	46,162			¥	33,829
Notes and accounts receivable—trade			46,605				38,018
Marketable securities			—				18,683
Inventories			29,044				34,733
Other current assets			31,020				64,070
Total current assets			152,882				189,336
Fixed assets:
Tangible			52,674				48,282
Intangible			28,523				21,335
Investments and others			208,751				204,768
Total fixed assets			289,949				274,386
Total assets		¥	442,782			¥	463,722
Liabilities and Shareholders’ Equity
Current liabilities:
Notes and accounts payable—trade		¥	53,827			¥	50,129
Accrued expenses			37,471				34,730
Other current liabilities			15,350				26,766
Total current liabilities			106,649				111,627
Long-term liabilities			73,279				76,100
Total liabilities			179,929				187,727
Shareholders’ equity			262,852				275,995
Total liabilities and shareholders’ equity		¥	442,782			¥	463,722

Note:

Accumulated depreciation on tangible fixed assets on September 30, 2005 and 2004 was ¥90,192 million and ¥91,727 million, respectively.

(2)  Condensed Statements of Operations

	(In millions of yen except per share information)
		Six months ended
		September 30
		2005				2004
Net sales		¥	245,819			¥	234,039
Cost of sales			213,720				191,874
Selling, general and administrative expenses			41,592				41,981
Operating income (loss)			(9,493	)			183
Non-operating income—net			54				2,098
Ordinary income (loss)			(9,439	)			2,282
Other income (expenses)—net			357				(0	)
Income (loss) before income taxes			(9,081	)			2,281
Income taxes			(3,709	)			141
Net income (loss)		¥	(5,371	)		¥	2,140
Net income (loss) per share		¥	(30.80	)		¥	12.19

CONDITION OF SHAREHOLDERS AND SHARES
(as of September 30, 2005)

Number of Shares Issued		180,063,836 shares

Note:  5,638,433 shares held by the Company as treasury stock are included.

Distribution of Share-ownership

		Number of				Number of Shares Held
		Shareholders				and its Percent to Total
Financial institutions			110				64,743		thousand		(35.96	%)
Securities companies			71				3,863				(2.15	)
Other Japanese business corporations			390				4,832				(2.68	)
Foreign corporations and individuals			397				63,784				(35.42	)
Japanese individuals and others			44,463				42,840				(23.79	)
Total			45,431				180,063		thousand		(100.00	%)

Note:

Japanese individuals and others include 5,638 thousand shares held by the Company as treasury stock.

Top Ten Largest Shareholders

		Number of Shares Held
		and its Percent to Total
Japan Trustee Services Bank, Ltd. (Trust Account)			12,545		thousand		(6.96	%)
The Master Trust Bank of Japan, Ltd. (Trust Account)			12,167				(6.75	)
Societe Generale Paris SGOP/DAI Paris 6Z			9,495				(5.27	)
The Bank of Tokyo-Mitsubishi, Ltd.			4,154				(2.30	)
Mizuho Bank, Ltd.			4,000				(2.22	)
Trust & Custody Services Bank, Ltd. as trustee for Mizuho Bank, Ltd. Retirement Trust Account re-entrusted by Mizuho Trust & Banking Co., Ltd.			3,955				(2.19	)
The Chase Manhattan Bank, N.A. London			3,907				(2.17	)
BNP Paribas Securities (Japan) Limited			3,005				(1.66	)
Pioneer Employee Share Ownership Plan			2,636				(1.46	)
Sumitomo Mitsui Banking Corporation			2,589				(1.43	)

Note:

The Company holds 5,638 thousand shares as treasury stock.

Stock Exchange Listings
Tokyo Stock Exchange Osaka Securities Exchange		New York Stock Exchange Euronext Amsterdam

Price per Share and Volume of Shares Traded on the Tokyo Stock Exchange

		High				Low				Volume
		(yen)				(yen)				(thousand shares)
2002
Oct.			2,130				1,805				20,215
Nov.			2,430				2,045				32,263
Dec.			2,490				2,150				22,870
2003
Jan.			2,405				2,070				21,562
Feb.			2,600				2,260				33,006
Mar.			2,620				2,390				24,271
Apr.			2,460				2,225				25,507
May			2,555				2,290				23,202
June			2,840				2,490				35,912
July			2,970				2,635				31,308
Aug.			2,815				2,515				27,317
Sept.			3,030				2,600				40,815
Oct.			2,820				2,505				30,938
Nov.			2,825				2,510				21,161
Dec.			2,995				2,645				25,249
2004
Jan.			3,370				2,875				29,718
Feb.			3,270				2,930				31,103
Mar.			3,250				2,890				32,572
Apr.			3,390				3,000				32,597
May			3,120				2,660				37,352
June			2,880				2,635				37,811
July			2,850				2,310				30,442
Aug.			2,480				2,215				22,949
Sept.			2,535				2,240				34,245
Oct.			2,430				1,820				41,087
Nov.			2,020				1,882				42,410
Dec.			2,070				1,866				38,031
2005
Jan.			2,055				1,890				29,702
Feb.			1,925				1,830				35,266
Mar.			2,015				1,827				43,851
Apr.			2,040				1,760				36,470
May			1,815				1,703				31,843
June			1,783				1,655				40,177
July			1,687				1,604				29,512
Aug.			1,785				1,634				34,869
Sept.			1,749				1,610				32,247

		December 1, 2005

To Our Shareholders

Notice Regarding Change in Management

The board of directors of Pioneer Corporation, at its meeting held on November 21, 2005, resolved to appoint Mr. Tamihiko Sudo, currently Executive Vice President and Representative Director, as its new President and Representative Director, effective as of January 1, 2006.

Mr. Kanya Matsumoto, currently Chairman and Representative Director, and I, currently President and Representative Director, will both assume new offices as Directors and Advisors, effective January 1, 2006.

This change in management reflects the responsibility we assume for the steep decline in our financial performance due to the smaller-than-planned number of units sold of plasma displays and DVD recorders, both strategic products.

Mr. Sudo has held various top executive posts, including president of Pioneer’s Mobile Entertainment Company (MEC) and Pioneer’s overseas subsidiary. He has a wealth of experience in managerial methods, and was project leader when MEC won the Japan Quality Award.

We will expedite restructuring of operations and seek to improve our business performance as soon as possible. We sincerely hope that you, our shareholders, will continue in your understanding and support of Pioneer.

		Very truly yours,   Kaneo Ito President and Representative Director Pioneer Corporation