TOKYO, Nov. 5, 2009 (Kyodo News International) --
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(Editors: RECASTING LEAD GRAF, UPDATING WITH MORE REMARKS, DETAILS)
Pioneer Corp. said Thursday it remained in the red in the first half of fiscal 2009 with a group net loss of 40.86 billion yen but halved the fund-raising amount required for its restructuring efforts from 40 billion yen due to an upturn in earnings.
''Structural reforms are being pursued as planned,'' Susumu Kotani, president of Pioneer, said at a news conference.
The net loss in the April-September period narrowed from 44.07 billion yen a year earlier.
The electronics and car navigation maker also booked an operating loss of 22.76 billion yen, against a year-earlier loss of 14.34 billion yen, on sales of 203.73 billion yen, down 37.7 percent.
The results reflect slower sales of car electronics products against the backdrop of an economic slowdown and the yen's appreciation as well as a drop in sales of plasma displays, costs related to an early retirement program and other restructuring, and a fall in tax expenses, Pioneer said.
The company last week trimmed its loss projection for the whole fiscal year to March 31, citing restructuring efforts and a recovery in car electronics sales in emerging economies.
Pioneer is now anticipating a group net loss of 59.5 billion yen and an operating loss of 25.5 billion yen on sales of 451 billion yen. In May, it predicted a net loss of 83.0 billion yen and an operating loss of 33.0 billion yen on sales of 420 billion yen.
Kotani said the company needs to continue with its cost-cutting measures to weather the severe business environment and left open the possibility of seeking public or private funds for assistance to achieve its midterm plan.
''We want to pursue the best option for us and aim to make a decision (about fundraising) by the end of the year,'' he said.
Pioneer's structural reforms include an asset sale as the company is set to relocate its head office from Tokyo's Meguro area to its plant in Kawasaki, Kanagawa Prefecture, on Nov. 24. It will aim to sell its Meguro office as soon as possible.
For the 2008 business year ended in March, Pioneer posted its biggest-ever group net loss of 130.53 billion yen, remaining in the red for the fifth consecutive year due to languishing demand for plasma display televisions and a stronger yen.
Subsequently, the company implemented aggressive restructuring measures including 10,000 job cuts and a withdrawal from its money-losing flat-panel display business.
Also Thursday, Pioneer announced that ongoing procedures to clear overseas antitrust laws for its envisioned optic disc venture with Sharp Corp. have concluded, paving the way for the two firms to launch their venture aimed at expanding their presence in the Blu-ray disc market.
