Kyocera Reports Higher Sales, Net Income for Past Nine Months

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Kyocera Corporation of Kyoto, Japan, today announced financial results for the past nine months for its fiscal year that will end in March 2018, with net sales up 12.9 percent and net income up 27.4 percent, both versus the same period a year ago.

During this nine-month period, Kyocera reported “robust demand” for information and telecommunications equipment, automobiles, and industrial machinery, all of which fueled a significant increase in the company’s revenue from electronic devices and automotive/industrial components. Revenue in the document-solutions business increased as well, following new product launches and related sales promotions. Mergers and acquisitions also made a further contribution to the company’s business expansion.

As a result, Kyocera achieved record nine-month sales of JPY 1,145,016 (US $10,133) million, an increase of JPY130,388 (U.S. $1,154) million, or 12.9 percent, over the same period of the prior year. Most profit metrics showed significant increases as well, due mainly to stronger sales and successful cost-reduction measures. Profit from operations increased 62.4 percent, to JPY 108,984 (U.S. $964) million; and income before income taxes increased 46.8 percent to JPY 144,864 (U.S. $1,282) million.

Net income increased 27.4 percent to JPY 90,267 (U.S. $799) million, despite third-quarter expenses at U.S. subsidiaries including AVX Corporation, primarily resulting from tax=law revisions in the United States, which amounted to a decrease of approximately JPY 11,000 (U.S. $97) million.

Average exchange rates for the nine months reflected the Japanese yen’s weakening against the U.S. dollar by approximately 4.7 percent, to JPY 112, and against the euro by approximately 9.3 percent, to JPY 129, as compared with the same period of the prior year. As a result, net sales and income before income taxes increased by approximately JPY 39 billion (U.S. $345 million) and JPY 13 billion (U.S. $115 million), respectively, as compared with the prior-year period.

Forecast

For its complete fiscal year that will end on March 31, 2018, Kyocera made no change to its forecasts for net sales, profit from operations, or income before income taxes that it announced on October 30, 2017, since its business results are generally in line with those projections. However, net income has been revised as shown below, in reflection of the aforementioned expenses related to U.S. tax-law revisions.

Regarding average exchange rates for the full fiscal year, Kyocera’s October 30, 2017 forecast of JPY 111 against the U.S. dollar remains unchanged, while Kyocera’s forecast of JPY 128 against the euro has been revised to JPY 130 , marking depreciation of JPY2 (1.6 percent).

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