Business News
KYOCERA Announces Consolidated Financial Results for the Three Months Ended June 30, 2008
Wednesday 30. July 2008 - Kyocera Corporation (NYSE:KYO)(TOKYO:6971) today announced its consolidated financial results for the first quarter of fiscal year 2009; FY09 (the three months ended June 30, 2008).
Financial Results, Three Months Ended June 30, 2008
Unit: millions (except percentages, exchange rates and per-share
amounts)
———————————————————————-
FY08 FY09 Increase FY09
in JPY in JPY (Decrease) in
% US$(a)
———————————————————————-
Net Sales 315,450 331,758 5.2 3,130
———————————————————————-
Profit from operations 31,616 27,962 (11.6) 264
———————————————————————-
Income from continuing operations
before income taxes 40,484 36,905 (8.8) 348
———————————————————————-
Net income 24,984 21,962 (12.1) 207
———————————————————————-
Diluted earnings per share 131.93 115.82 (12.2) 1.09
———————————————————————-
Average exchange rates (US$) 121 105 – –
———————————————————————-
Average exchange rates (Euro) 163 163 – –
———————————————————————-
(a)based on the rates of US$1 = JPY 106.
Overview of Consolidated Financial Results
Consolidated net sales for the first quarter amounted to JPY 331,758 million (USD3,130 million) an increase of 5.2% compared with the previous first quarter, due primarily to the addition of the mobile phone business of SANYO Electric Co., Ltd. (SANYO), effective April 1, 2008, and rising sales of solar energy products.
First-quarter profit from operations decreased by 11.6% as compared to the previous first quarter, to JPY 27,962 million (USD264 million), due to the appreciation of the yen against the U.S. dollar and an associated increase in depreciation expenses. Income before income taxes decreased by 8.8%, to JPY 36,905 million (USD348 million); and net income decreased by 12.1%, to JPY 21,962 million (USD207 million), in comparison with the previous first quarter.
Sales in the Components Business increased by 3.8% as compared with the previous first quarter, to JPY 168,820 million (USD1,593 million), while operating profit decreased by 3.9%, to JPY 22,534 million (USD213 million), with an operating profit ratio of 13.3%. Sales in the Equipment Business increased by 7.8%, to JPY 137,109 million (USD1,293 million), while operating profit decreased by 11.1%, to JPY 8,038 million (USD76 million), with an operating profit ratio of 5.9%.
The Others segment includes information and communications technology services and chemical materials for electronic components. First-quarter sales in this reporting segment increased by 1.7% as compared to the previous first quarter, to JPY 32,178 million (USD304 million), due primarily to rising sales in the Information and Communication Technology (ICT) and telecommunications engineering businesses of Kyocera Communication Systems Co., Ltd. Operating profit decreased by 58.1%, to JPY 543 million (USD5 million), as compared to the prior first quarter, with an operating profit ratio of 1.7% due to an increase in overhead costs.
Consolidated Financial Forecast for the Year Ending March 31, 2009
Although we have revised our forecast for the average exchange rate of the Japanese yen against the Euro, we are making no changes to full-year consolidated financial forecast for fiscal year 2009, since the effect of this revision is not significant. -0-
Consolidated Forecast for Fiscal 2009
(Yen in millions, except per share amounts
and exchange rates)
——————————————–
Fiscal 2009 Forecast
Fiscal 2008 Announced on Increase
Results ——————– (Decrease)
April 25, July 30, (%)
2008 2008
———– ———- ——— ———–
Net sales 1,290,436 1,476,000 1,476,000 14.4
Profit from operations 152,420 145,000 145,000 (4.9)
Income before income
taxes 174,842 165,000 165,000 (5.6)
Net income 107,244 102,000 102,000 (4.9)
Diluted earnings per
share 565.80 538.13 537.91 (4.9)
Average US$ exchange rate 114 100 100 –
Average Euro exchange
rate 162 152 155 –
———– ———- ——— ———–
Note: The forecast of earnings per share announced on July 30, 2008 is computed based on the diluted average number of shares outstanding during the three months ended June 30, 2008.
The global economic situation is expected to remain severe during the second quarter of fiscal 2009 and thereafter due to continuing concern over financial instability in the United States, and heightened inflation worries triggered primarily by the rising costs of crude oil and raw materials. Despite these concerns, production of digital consumer equipment is expected to expand steadily, and as a result, Kyocera forecasts a moderate recovery in demand for components used in these products beginning in the second half of fiscal 2009.
Based on this economic outlook, we will strive to attain our full-year forecast by strengthening the foundation of each business; cultivating new markets and customers; improving productivity; aiming for continuous sales expansion; and improving the profitability of the Kyocera Group as a whole.