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Pioneer Q3 Loss Narrows, Lowers FY18 Outlook; To Not Pay Year-end Dividend

Pioneer Corp. (PNCOF.PK) reported third-quarter net loss attributable to owners of Pioneer of 2.86 billion yen or 7.56 yen, narrower than net loss of 3.99 billion yen or 10.88 yen per share in the prior-year period.

The narrower net loss was due to the decrease in foreign exchange loss and the extraordinary loss mainly associated with restructuring, despite a decrease in operating income.

Operating income for the quarter fell 96.6 percent to 63 million yen from 1.87 billion yen in the year-ago period, due to the deterioration in the cost of sales ratio mainly as a result of foreign exchange rate movements, and the decline in net sales.

Consolidated net sales for the quarter declined 3.8 percent to 94.70 billion yen from 98.41 billion yen last year, mainly due to lower sales of Car Electronics and the effect of the transfer of the cable TV system-related equipment business more than offsetting the positive effect of the Japanese yen's depreciation.

Car Electronics sales declined 2.9 percent year on year to 75.97 billion yen. In the Others segment, sales declined 7.1 percent year on year.

Pioneer said it resolved at a meeting of its board of directors held today to revise its consolidated business forecasts for fiscal 2018, the year ending March 31, 2018, and to pay no year-end dividend.

For fiscal 2018, Pioneer now forecasts net sales of 370.00 billion yen, operating income of 5.0 billion yen, and net loss of 3.00 billion yen. Earlier, the company expected net sales of 380.00 billion yen, operating income of 10.00 billion yen, and net income of 3.50 billion yen.

The company said it revised the full-year net income forecast downward, mainly because of the decrease in operating income and the increase in net non-operating expenses. The lower net sales outlook reflects recent slow sales of the consumer market products in Car Electronics.

Pioneer also said that the decision to not pay a year-end dividend is attributable to anticipating a consolidated net loss attributable to owners of the company for fiscal 2018.

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