Kyocera Reports Stellar Six-Month Financial Results

Kyocera Corporation of Japan released financial results for the six months of its fiscal year that ended on September 30th, reporting that net sales for the six months increased by ¥85,102 million, or 13.0 percent, to ¥738,345 million, compared with the six months that ended on September 30, 2016, representing a “record high in terms of first half results.” Net income was ¥61 billion, up 69.8 percent versus the prior-year period.

According to the company, sales derived from its Industrial & Automotive Components Group and Electronic Devices Group “increased significantly,” reflecting strong demand for components used in information and communications markets, automotive-related markets, and industrial-machinery markets.

Sales also expanded in the Document Solutions Group, “due to launching of new products and aggressive sales promotion activities.”

As a result, profits for both the Components Business and the Equipment & Systems Business increased compared with the previous first half, due to increased sales and cost reductions, as well as enhanced productivity achieved through implementation of structural reforms in the previous fiscal year that ended on March 31, 2017.

Profit from operations increased by ¥35,720 million, or 105.7 percent, to ¥69,505 million; income before income taxes increased by ¥39,262 million, or 80.8 percent, to ¥87,840 million; and net income attributable to Kyocera Corporation’s shareholders increased by ¥25,234 million, or 69.8 percent, to ¥61,387 million, compared with the previous first half.

Document Solutions Group

Sales in this segment increased compared with the previous first half, “due to an increase in sales volume as a result of launching new products and aggressive sales-promotion activities, coupled with the contribution of sales resulting from merger and acquisition activity.”

Operating profit for the group increased significantly due to the increase in sales, cost reductions, and the impact of foreign-currency exchange-rate fluctuations. The operating profit ratio improved to the double-digit level.

Forecast

Kyocera forecasts that increased demand for its third quarter (October 1 to December 31, 2017) and fourth quarter (January 1 to March 31, 2018), especially for parts used in industrial machinery and automotive-related markets. Depreciation of the Japanese yen is now forecast to exceed the original forecast, also contributing to anticipated sales and profit exceeding those forecasts in May 2017. In line with this, forecasts for each reporting segment have been revised upwards.

Kyocera also raised its forecasts for net sales and net income for its fiscal year that will end in March 2018. It’s now forecasting net sales of ¥1.5 trillion, versus ¥1.4 trillion for the previous fiscal year, and net income of ¥119. billion, versus ¥104 billion for the previous fiscal year.

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