UPDATE 1-JVC Kenwood aims for 2010/11 oper margin of 5.2 pct
October 1st, 2008 | by admin |(Adds details, background, latest share price)
TOKYO, Oct 1 (Reuters) – Japanese electronics maker JVCKenwood Holdings Inc (6632.T: Quote, Profile, Research, Stock Buzz) said it aims to boost its operatingprofit margin to 5.2 percent by the year ending March 2011, upfrom an estimated 3.1 percent this business year.
JVC Kenwood was established on Wednesday through a mergerbetween consumer electronics company Victor Co of Japan (JVC) andKenwood Corp, an audio equipment and car electronics maker, in anattempt to survive fierce competition by pooling their resources.
The company said it aims for an operating profit of 39billion yen ($368 million) on sales of 750 billion yen for thebusiness year that ends on March 31, 2011.
Those figures would still be less than one-tenth of SonyCorp’s (6758.T: Quote, Profile, Research, Stock Buzz) estimated revenues and profit for the currentbusiness year to March 2009. But the targeted operating margin of5.2 percent is in line with Sony’s.
For the current business year to March 2009, JVC Kenwood,owned 24 percent by consumer electronics giant Panasonic Corp(6752.T: Quote, Profile, Research, Stock Buzz), expects an operating profit of 12.5 billion yen andrevenues of 400 billion yen.
The estimated sales, which take into account full-yearearnings at Kenwood and JVC’s performance in the six months toMarch, are equivalent to half of the combined revenues of the twofirms a year ago due to accounting changes and a slowdown in theglobal economy.
Kenwood is the world’s second-largest maker of wireless radioequipment such as Walkie-talkies behind Motorola Inc (MOT.N: Quote, Profile, Research, Stock Buzz),while JVC offers home electronics such as flat TVs andcamcorders.
JVC and Kenwood continue to operate under the holdingcompany.