Kyocera Reports 'Significant Profit' in MFP Sales for Half Year of its Fiscal Year
Kyocera Corporation of Japan reported financial results for its fiscal first half-year (April to September 2014). Net sales for the company’s half-year were ¥714,329 million, an increase of ¥14,666 million, or 2.1 percent, compared with ¥699,663 million for the previous first half, due to increased sales in the Semiconductor Parts Group and the Information Equipment Group (the latter of which includes copiers, printers, and MFPs). Sales were lower however in Kyocera’s Electronic Device Group and Telecommunications Equipment Group.
Profit for the first half year was down compared with the previous first half-year due primarily to a decrease in profit in Kyocera Applied Ceramic Products Group, which mainly reflected a decline in product selling prices, despite a significant increase in profit in the Information Equipment Group, and more than double-digit increases in profit in the Fine Ceramic Parts Group and the Electronic Device Group.
Profit from operations for the first half decreased by ¥3,452 million, or 5.9 percent, to ¥54,751 million, compared with ¥58,203 million for the previous first half-year. Income before income taxes decreased by ¥935 million, or 1.4 percent, to ¥68,118 million, compared with ¥69,053 million for the previous first half. On the other hand, net income attributable to shareholders of Kyocera Corporation in the first half increased by ¥719 million, or 1.7 percent, to ¥43,649 million, compared with ¥42,930 million for the previous first half-year, due to decreased income taxes through the tax-system revision in Japan.
Information Equipment Group
Sales in this segment increased compared with the previous first half-year as a result of an increase in sales volume, particularly of MFPs, due to the company’s efforts in cultivating markets and expanding sales of new products. Operating profit increased significantly compared with the previous first half-year, due in part to an increase in sales of consumables and to a reduction in costs. Sales of MFPs in the United States were up compared with the previous first half-year.
For its third quarter (the three months ending December 31, 2014), Kyocera expects component demand to increase on the back of increased production of digital consumer equipment, particularly smartphones, and steady growth in the industrial-machinery and automotive-related markets. Kyocera also expects sales to increase due to its new mobile phone handsets and MFP production introductions.
In light of this outlook, Kyocera projects sales and profit from the third quarter onward to exceed the first half-year as originally forecast, and as a result, Kyocera has not revised its financial forecasts for its fiscal year ending March 31, 2015.