JVCKENWOOD publishes revision of the consolidated earnings and dividend forecasts and voluntary return of executive compensation
JVCKENWOOD, at its Board of Directors meeting held yesterday, resolved to revise the consolidated earnings and dividend forecasts for the fiscal year ended March 2020 announced on April 26, 2019 and voluntary return of part of executive compensation, in light of the impact of the novel coronavirus epidemic. The epidemic of the novel coronavirus inflicted a significant impact on the Group’s earnings because it occurred in the fourth quarter, the biggest sales season for the Group. In addition, exchange rate fluctuations caused a decline, etc. in revenue. As a result, revenue, operating profit, profit before income taxes, and profit attributable to owners of the parent company are now expected to fall below the full-year consolidated earnings forecast for the fiscal year ended March 2020 announced on April 26, 2019. Accordingly, JVCKENWOOD has decided to revise it's earnings forecast. The board also recognizes that distributing profits to it's shareholders is one of the most important tasks of the management. For this reason, JVCKENWOOD are making further effort to enhance the company’s value by expanding profitability and strengthening the financial structure from a long-term perspective. Due to the impact of the outbreak of the novel coronavirus that occurred in the fourth quarter of the period, the full-year earnings are now expected to be drastically revised downward from the forecast announced at the beginning of the period.
In order to clarify management’s responsibility in the downward revision of the consolidated earnings and dividend forecasts for the fiscal year ended March 2020, and taking the significant impact of the novel coronavirus epidemic on the Group’s earnings into consideration, the officers have decided to voluntarily return part of their compensation.