2020-02-19

JVCKENWOOOD Shows Positive Profit Trend in Communication Systems Business

Source: The Critical Communications Review | Gert Jan Wolf editor

The company aims to integrate its four business domains as a whole rather than on a existing-product-brand basis and will expand it's video and audio solutions portfolio.

In the recent ‘Results and Forecast Briefing Third Quarter of Fiscal Year Ending March 2020’ JVCKENWOOD Corporation announced that the company is actively finetuning its engineering and solutions strategy for the future. The aim of the company is to integrate its four business domains as a whole rather than on a existing-product-brand basis. This could mean that in the future, within the Public Service Sector, we might see an increased integration of products and services.

The JVCKENWOOD Group currently counts four business domains.

  • Media Service Sector (MS) 19%
  • Automotive Sector (AM) 52%
  • Public Service Sector (PS) 23%
  • Others 5%

The Communication Systems Business such as Professional radio systems, amateur radio equipment and wireless systems, are part of the Public Service Sector. This sector also counts the JVCKENWOOD Public & Industrial Systems Corporation (focused on security camera’s and professional broadcasting equipment) as well as Healthcare.

In the briefing, published earlier this month, the company stated that the revenue of the Public Service Sector within the group was increased thanks to higher sales of the JVCKENWOOD Public & Industrial Systems Corporation (JKPI) in the Professional Systems Business. Hoever, lower revenue was posted by the Communications Systems Business, which was affected by foreign exchange rates.

The core operating income of the Public Service Sector as a whole increased due to the increased revenue and cost reduction effects. The Communication Systems Business posted a positive profit for the sixth consecutive quarter, showing that the positive profit trend is firmly in place.

Operating profit for the first nine months of FYE3/’20 was in line with period-start projections although revenue slightly fell short of projections, affected by foreign exchange rates. 


For 4Q, the full-year earning forecast will be left unchanged due to the rollout of new products in the domestic and international market in the Aftermarket Business, strong sales maintained in the Public Service Sector Sector, and higher sales in the Media Business in the MS Sector, despite the impacts and risks of the slowdown of China’s economy and shrinking device market in the Auto Motive Sector. Note that the earning forecast does not reflect the effects from the novel coronavirus pneumonia as they are now in the process of being checked.

Furthermore the company is carrying out structural reforms in keeping in touch with the changing market. For example, the company is restructuring it’s R&D base in Singapore in response to declining demand for car audio and analog communication systems. This resulted in a headcount reduction.

Recently the company acquired orders for professional digital radio systems for California Highway Patrol in the U.S. worth approximately 3.0 billion yen in total over the next three years. For this project, the company wil equipp 3,300 vehicles, as mixed protocol operation (P25 Phase 1& 2, Viking16, FM Analog) service deployed by U.S. communication system subsidiary EFJT.

Finally, the JVCKENWOOD Group expect to expand sales of Video and Audio Solutions products such as surveillance systems, signage and wireless intercoms that are aimed to enhance safety measures and convenience at airports and ports. To date, the company announced that it has acquired orders from seven airports and one port operator.

The full report can be downloaded here