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Revenue Up for Kyocera, But Costs Continue to Drag Down Profit

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Kyocera Corporation of Japan today released financial results for its fiscal first quarter, which consisted of the three months that ended on June 30, 2024. 

In a nutshell, while sales revenue was up, the company says profits continue to be hampered by costs. The company’s Document Solutions business however continued to post strong results.

First-quarter sales revenue was ¥498.86 billion ($3.33 billion), up 4.1 percent year-over-year; operating profit was ¥20.95 billion ($139.91 million), down 18.4 percent year-over-year; and net income was ¥36.79 billion ($245.69 million), down 1.6 percent year-over-year.

Kyocera said that while sales revenue increased mainly due to the impact of a weaker Japanese yen, profits decreased mainly due to an increase in fixed costs such as labor costs and depreciation charges for property, plants, and equipment, as well as higher research and development expenses.

Revenue for Kyocera’s Document Solutions unit was ¥115.03 billion ($768.30 million), up 11.1 percent year-over-year, and business profit was ¥11.34 billion ($75.75 million), up 25.7 percent year-over-year.

All reporting segments posted higher sales revenue, “centered in the Document Solutions Unit,” due mainly to the impact of a weaker yen.

However, Kyocera said profit decreased due to a decline in profits in the Core Components Business and Electronic Components Business, as well as due to higher research and development expenses for Kyocera’s Others business, despite an increase in the Solutions Business.

Forecast

Kyocera maintained its forecast. For its fiscal year that will end on March 31, 2025, it’s forecasting net revenue of ¥2.05 trillion ($13.62 billion), up 2.3 percent year-over-year; operating profit of ¥110.00 billion ($734.70 million), up 18.4 percent year-over-year; and net income of ¥112.00 billion ($748.06 million), up 10.8 percent year-over-year.

Kyocera Quarterly Financial Trends

Source: Kyocera Corporation

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