Message from Management
Pioneer's consolidated net sales for the first half of fiscal 2014, the six months ended September 30, 2013, rose 5.2% year on year, to ¥236.3 billion. Although we achieved a major improvement in operating income in the second quarter, operating income for the first half declined 82.0% year on year, to ¥0.6 billion. With the absence of the ¥5.8 billion loss on impairment of investment securities recorded in the first half of fiscal 2013, the net loss contracted to ¥5.0 billion from the year-earlier ¥7.5 billion.
We are making every effort to implement initiatives for future growth, in addition to making further progress with our measures to bring about a recovery and an increase in earnings.
In Car Electronics, we are working to raise profitability through thoroughly reviewing our cost structure and introducing modular design and other design processes to significantly reduce both development and manufacturing man-hours. We are also working to revitalize the consumer market in Japan, including the introduction this fall of a new Raku Navi car navigation system equipped with an augmented reality (AR) head-up display (HUD) that projects viewable navigation information beyond the windshield. Working together with NTT DOCOMO, INC., we launch a new smartphone service for drivers, and we are also developing next-generation cloud-based products and services to build a new business model for the age of high-speed wireless networks.
In Home Electronics, we are working to secure earnings with a focus on our globally acclaimed DJ equipment, and are stepping up our efforts to achieve stable profitability.
In the area of organic light-emitting diode (OLED) lighting, which holds major potential as a key new business, we have begun sample shipments of lighting modules made using a printing process for the emission layer that makes it possible to significantly reduce manufacturing costs. We aim to build this area into a full-scale business in fiscal 2014.
We are making every effort to achieve our sales plan for fiscal 2014 and further strengthen cost management. We also intend to use our technological capabilities developed over the course of Pioneer's history to rebuild our earnings base by strengthening existing businesses and developing new businesses as our next core businesses. We will move forward with determination to bring about an earnings recovery that will allow us to resume dividend payments at an early date.
I ask for your continued support as we pursue these endeavors.