Slower Quarter for Kyocera; Income Forecast to be 22.3-Percent Lower Versus Previous Fiscal Year

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Kyocera Corporation of Kyoto, Japan, reported  results for its nine-month fiscal period that ended December 31, 2015. Net sales for the nine-month period declined 0.8 percent as compared to the year-ago nine-month period, to 1,093,030 million yen ($9,033 million U.S.); profit from operations decreased 26.8 percent, to 66,020 million yen; income before income taxes declined 15.1 percent to 97,390 million yen, and net income declined 19.6 percent to 59,504 million yen ($492 million U.S.).

Nine-Month Financial Results

Kyocera says that overall the nine-month period was characterized by growth in the automotive market, mainly in the United States and China, and an expanding market for smartphones globally.

As compared to the year-ago period, Kyocera’s sales of components used in smartphones, industrial equipment and automotive applications “increased steadily.”In contrast, sales declined for the Telecommunications Equipment Group and the Applied Ceramic Products Group, which includes Kyocera’s solar energy business. Profits declined primarily due to the recording of costs of approximately 23 billion yen, including an impairment of goodwill in the Electronic Device Group, and reduced profit in the Information Equipment Group, due mainly to the impact of currency-exchange fluctuations.

For its third quarter that ended on December 31, 2015, net sales were down 4.4 percent, while net income was 8,712 million yen, a decline of 71.3 percent versus the 30,322 million yen reported for the same quarter a year ago.

Forecast for the Fiscal Year Ending March 31, 2016

For its fourth quarter ending March 31, 2016, Kyocera expects sales of components for semiconductor-processing equipment and automobiles to increase steadily. However, Kyocera expects the slowing of the Chinese economy to adversely affect its business.

Consequently, Kyocera has revised its full-year forecast for the year ending March 31, 2016, with net sales done 3 percent for the year versus its previous announcement, but net income higher than its previous forecast, but down 22.3 percent compared to its previous fiscal year.

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