PIONEER CORPORATION |
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(Translation of registrants name into English) |
4-1, MEGURO 1-CHOME, MEGURO-KU, TOKYO 153-8654, JAPAN |
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(Address of principal executive offices) |
SIGNATURES | ||||||||
Notice Regarding Amendments to Semiannual Business Results for Fiscal 2006 (60th Accounting Period) |
PIONEER CORPORATION (Registrant) |
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Date: December 21, 2005 | |||||
By | /s/ Kaneo Ito | ||||
Kaneo Ito | |||||
President and Representative Director | |||||
1. | The notice that the Company has amended certain amounts in its consolidated and non-consolidated financial statements for the period ended September 30, 2005, related to the 60th semiannual business report. |
I. | Planned Business Restructuring | |
1. | Reforms for the Entire Pioneer Group | |
(1) | Improve management efficiency through organizational restructuring | |
We will enhance management efficiency through organizational restructuring, including dismantling the current internal company system as of January 1, 2006. | ||
(2) | Reduction of fixed costs | |
We will reduce fixed costs for the entire group through such steps as consolidating our worldwide production sites and listing our shares solely on the Tokyo Stock Exchange. | ||
(3) | Review the number of our employees | |
We will streamline staffing, such as readjusting employment levels by about 600 personnel at the Pioneer Group in Japan. | ||
(4) | Reduce the number of directors/executive officers and cut salaries | |
In line with consolidating and streamlining our organization, we will reduce the number of directors/executive officers. We have already started reducing the compensation of directors/executive officers and the salaries of managers. | ||
2. | Restructuring of Display Businesses | |
(1) | Plasma display business | |
We intend to minimize dependence on our OEM (original equipment manufacturing) operations, being the main cause of this fiscal years poor performance, and will focus on selling Pioneer brand products. By optimizing the balance of our output and cost reduction, we will endeavor to lower our deficit from this business. | ||
(2) | Organic light-emitting diode (OLED) business | |
Mass-producing active-matrix OLED displays will be discontinued. However, as for the passive-matrix OLED display business, we will boost adoption of this display for use with our products and focus on attracting new customers. | ||
3. | Future Business Plans Enhancing Profitability by Reorganizing Business Strategies | |
In addition to the business restructuring plans explained above, in our mobile entertainment business, we will strengthen the after-market car audio business |
and expand the after-market car navigation system and OEM businesses. In the home entertainment business, we will concentrate on introducing home theater systems focusing on high-resolution plasma displays, strengthening sales of DVD recorder drive units and reactivating the home audio business. By implementing these plans, we intend to insure stable profits. | ||
II. | Revision of Business Forecasts for fiscal 2006 and Amendments to Semiannual Business Results for Fiscal 2006 |
2
September 30 | ||||||||
2005 | 2004 | |||||||
Assets |
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Current assets: |
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Cash and cash equivalents |
¥ | 107,198 | ¥ | 123,936 | ||||
Trade receivables, less allowance |
126,981 | 119,863 | ||||||
Inventories |
126,594 | 135,504 | ||||||
Others |
73,878 | * | 74,711 | |||||
Total current assets |
434,651 | * | 454,014 | |||||
Investments and long-term receivables |
25,268 | 29,553 | ||||||
Property, plant and equipment, less depreciation |
171,893 | * | 208,964 | |||||
Intangible assets |
22,723 | * | 25,590 | |||||
Other assets |
44,518 | * | 39,015 | |||||
Total assets |
¥ | 699,053 | * | ¥ | 757,136 | |||
Liabilities and Shareholders Equity |
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Current liabilities: |
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Short-term borrowings and current portion
of long-term debt |
¥ | 55,560 | ¥ | 40,615 | ||||
Trade payables |
104,831 | 103,031 | ||||||
Others |
122,463 | * | 104,554 | |||||
Total current liabilities |
282,854 | * | 248,200 | |||||
Long-term debt |
79,512 | 87,397 | ||||||
Other long-term liabilities |
41,225 | * | 58,909 | |||||
Minority interests |
14,202 | * | 18,281 | |||||
Shareholders equity: |
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Common stock |
49,049 | 49,049 | ||||||
Capital surplus |
82,834 | 82,612 | ||||||
Retained earnings |
201,204 | * | 276,334 | |||||
Accumulated other comprehensive loss |
(39,390 | ) | (53,185 | ) | ||||
Treasury stock |
(12,437 | ) | (10,461 | ) | ||||
Total shareholders equity |
281,260 | * | 344,349 | |||||
Total liabilities and shareholders equity |
¥ | 699,053 | * | ¥ | 757,136 | |||
3
Six months ended | ||||||||
September 30 | ||||||||
2005 | 2004 | |||||||
Revenues: |
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Operating revenue: |
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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: |
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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 |
33,635 | * | 1,229 | |||||
Total cost and expenses |
401,084 | * | 333,692 | |||||
Income (loss) before income taxes |
(43,869 | )* | 12,438 | |||||
Income taxes |
(6,815 | )* | 5,544 | |||||
Minority interest in losses (earnings)
of subsidiaries |
4,168 | * | (560 | ) | ||||
Equity in losses of affiliated companies |
(25,158 | )* | (1,525 | ) | ||||
Net income (loss) |
¥ | (58,044 | )* | ¥ | 4,809 | |||
Net income (loss) per share: |
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Basic |
¥ | (332.77 | )* | ¥ | 27.41 | |||
Diluted |
¥ | (332.77 | )* | ¥ | 24.45 |
4
Six months ended | ||||||||
September 30 | ||||||||
2005 | 2004 | |||||||
Operating activities: |
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Net income (loss) |
¥ | (58,044 | )* | ¥ | 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 |
31,864 | * | (7,711 | ) | ||||
Net cash provided by (used in) operating activities |
1,220 | (4,031 | ) | |||||
Investing activities: |
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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: |
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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 | ||||
5
1. | The Companys 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 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. |
6
September 30 | ||||||||
2005 | 2004 | |||||||
Assets |
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Current assets: |
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Cash |
¥ | 46,162 | ¥ | 33,829 | ||||
Notes and accounts receivabletrade |
46,605 | 38,018 | ||||||
Marketable securities |
| 18,683 | ||||||
Inventories |
29,044 | 34,733 | ||||||
Other current assets |
31,020 | 64,070 | ||||||
Total current assets |
152,832 | 189,336 | ||||||
Fixed assets: |
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Tangible |
52,674 | 48,282 | ||||||
Intangible |
28,523 | 21,335 | ||||||
Investments and others |
199,361 | * | 204,768 | |||||
Total fixed assets |
280,559 | * | 274,386 | |||||
Total assets |
¥ | 433,392 | * | ¥ | 463,722 | |||
Liabilities and Shareholders Equity |
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Current liabilities: |
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Notes and accounts payabletrade |
¥ | 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 |
253,463 | * | 275,995 | |||||
Total liabilities and shareholders equity |
¥ | 433,392 | * | ¥ | 463,722 | |||
Note: | Accumulated depreciation on tangible fixed assets on September
30, 2005 and 2004 was ¥90,192 million and ¥91,727 million, respectively. |
7
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 incomenet |
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 |
5,679 | * | 141 | |||||
Net income (loss) |
¥ | (14,761 | )* | ¥ | 2,140 | |||
Net income (loss) per share |
¥ | (84.63 | )* | ¥ | 12.19 |