Kenwood Corp. reported Tuesday that its first-half profit fell 3.5 percent on costs to develop new products.
Net income declined to ¥1.21 billion in the six months that ended Sept. 30, from ¥1.25 billion a year earlier, the Tokyo-based company said, beating its July forecast of ¥1 billion.
Kenwood expects an auto-electronics joint venture formed with Victor Co. of Japan in October to help fend off rivals, including Pioneer Corp., in the car-navigation market, bolstering sales and profitability in the 12 months ending next March 31. Kenwood also bought U.S.-based Zetron Inc. to strengthen its wireless communications business, which makes transceivers.
First-half sales increased 4.9 percent to ¥85.6 billion. Operating profit fell 18 percent to ¥2.62 billion.