Sharp Decline in Revenues, Earnings for Kyocera’s First Half

Kyocera Corporation of Japan today released financial results for the first six months of its fiscal year that ended on September 30, 2019, referred to as  “the first half.” Kyocera also reported lower results for its second quarter (see below).

Revenue for the first half was ¥799 billion, down 0.2 percent year-over-year, while operating profit was ¥60 billion, down 27 percent year-over-year, and profits totaled ¥59.6 billion, down 24 percent year-over-year.

Kyocera reported lower sales for its Component Business, but higher sales for its Equipment & Systems Business,  due mainly to increased sales of mobile phones in Japan.

Regarding the lower sales, Kyocera cited a slowing of the economy in China, and overall adverse trade conditions due to the U.S.-China trade ware, as well as appreciation of the Japanese yen versus the European euro.

Document Solutions Group

Sales revenue for Kyocera’s Document Solutions Group for the first half decreased by ¥885 million, or 0.5 percent year-over-year, to ¥177.8 billion.

Kyocera stated that despite the contribution from mergers and acquisitions conducted in its fiscal-year 2019, sales revenue remained roughly unchanged due to the effect of the yen’s appreciation against the euro.

Business profit for the group decreased by ¥1.0 billion yen, or 5.5 percent year-over-year, to ¥18.8 billion yen, due mainly, Kyocera said, to the effect of foreign-currency fluctuations. Despite this, Kyocera said “a double-digit business profit ratio was maintained on the back of efforts to improve productivity and reduce costs.”

Second Quarter

For its second quarter that ended on September 30, 2019, Kyocera reported ¥414.1 billion, a year-over-year decline of 0.2 percent; operating profit of ¥37.6 billion, a year-over-year decline of 17.2 percent; and profits totaling ¥27.5 billion, a year-over-year decline of 23.6 percent.

Second-quarter sales revenue for the Document Solutions group was ¥87.1 billion, up 0.9 percent year-over-year, and business profit for the group was ¥8.9 billion, up 3.0 percent year-over-year.

Forecast

For its fiscal year that will end on March 31, 2020, Kyocera remains optimistic, stating that it expects recovery in demand for some products in the information and communications market. It also expects improved profitability to continue mainly as a result of structural reforms implemented it implemented in fiscal-year 2019.

Consequently, it’s forecasting revenue of ¥1,700.0 billion, up 4.7 percent versus the previous fiscal year; operating profit of ¥140.0 billion, up 47.6 percent versus the previous fiscal year; and profits of ¥125.0 billion, up 21.1 percent versus the previous fiscal year.

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