Business News
KYOCERA Announces Consolidated Financial Results for Three Months Ended June 30, 2009
Thursday 30. July 2009 - Kyocera Corporation (NYSE:KYO)(TOKYO:6971) today announced its consolidated financial results for the first quarter of fiscal year 2010 (the three months ended June 30, 2009).
Financial Results, Three Months Ended June 30, 2009
Unit: millions (except percentages, exchange rates and per-share amounts)
FY09
in JPY
FY10
in JPY
Increase
(Decrease)
%
FY10
in USD*
Net sales
331,758 225,401 (32.1 ) 2,348
Profit (loss) from operations 27,962 (5,572 ) – (58 )
Income before income taxes 36,905 703 (98.1 ) (7 )
Net income (loss) attributable to
shareholders of Kyocera
Corporation
21,962 (460 ) – (5 )
Diluted earnings (losses) per share
attributable to shareholders of
Kyocera Corporation
115.82 (2.50 ) – (0.03 )
Average exchange rates (USD) 105 97 – –
Average exchange rates (Euro) 163 133 – –
Based on the rate of USD1 = JPY96 as convenience to the reader.
Numbers are rounded to the nearest unit.
Overview of Consolidated Financial Results
In the midst of a global economic downturn, consolidated net sales for the three months ended June 30, 2009 amounted to JPY225,401 (USD2,348) million, a decrease of 32.1% compared with the same period of the previous fiscal year. The business environment was characterized by weak demand for components used in the digital consumer equipment, semiconductor and automotive industries, along with a significant decrease in replacement demand for mobile phone handsets, printers and digital multifunction peripherals. Additionally, the companys revenue and profit were reduced by the appreciation of the yen against the Euro and the U.S. dollar compared to the previous first quarter.
In light of the harsh business environment, the company promoted cost-cutting measures and reduced capital expenditures while aggressively promoting sales. Despite these efforts, Kyocera recorded a loss from operations totaling JPY5,572 (USD58) million, a decrease of JPY33,534 (USD349) million from the previous first quarter. As a result, income before income taxes decreased by 98.1% year over year, to JPY703 (USD7) million. Net loss attributable to shareholders of Kyocera Corporation amounted to JPY460 (USD5) million, a decrease of JPY22,422 (USD234) million from the previous first quarter.
Exchange rates averaged JPY97 to the U.S. dollar and JPY133 to the Euro, marking appreciation of JPY8 (approximately 8%) and JPY30 (approximately 18%) respectively, compared with the previous first quarter. As a result, first-quarter net sales and income before income taxes (after full translation into yen) were, for calculation purposes, reduced by approximately JPY19,000 (USD198) million and JPY5,500 (USD57) million, respectively.
In the components business, sales decreased by 33.3%, to JPY112,588 (USD1,173) million; and operating profit decreased by JPY24,787 (USD258) million, resulting in an operating loss of JPY2,253 (USD23) million, compared with the previous first quarter.
In the equipment business, sales decreased by 34.0%, to JPY90,559 (USD943) million; and operating profit decreased by JP11,298 (USD118) million, resulting in an operating loss of JPY3,260 (USD34) million, compared with the previous first quarter.
The “Others” segment includes information and communications technology services and materials for electronic components. Sales in this reporting segment decreased by 16.7% compared with the previous first quarter, to JPY26,819 (USD279) million. Operating profit decreased by JPY569 (USD6) million, resulting in an operating loss of JPY26 (USD0.27) million, due primarily to lower sales.
While the above results reflect a major decrease in net sales and profit from operations compared to the same period of the previous fiscal year, when compared to the fourth quarter of the previous year (3 months from January through March); profit from operations increased by JPY18,266 (USD190) million, income before income taxes increased by JPY27,130 (USD283) million, and first quarter net income attributable to shareholders of Kyocera Corporation increased by JPY26,802 (USD279) million.
In the components business, compared to the fourth quarter of the previous fiscal year, sales increased by JPY14,068 (USD147) million, and operating profit increased by JPY13,422 (USD140) million. In the equipment business, operating profit increased over the fourth quarter of the previous fiscal year by JPY4,899 (USD51) million, accomplishing internal goals in line with the financial forecast announced previously this year.
Outlook and Future Prospects
First-quarter demand for components used in digital consumer equipment recovered beyond initial projections. However, a recovery in demand within the semiconductor and automotive markets remains uncertain. Although the global economy is expected to hit bottom and gradually improve, Kyocera expects true economic recovery to take more time. As a result, the company has not changed the consolidated financial forecasts for fiscal 2010 that were announced on April 27, 2009.
Although the extremely harsh business environment is expected to continue, Kyocera will strive for recovery in sales and profit by mobilizing management to maximize sales and minimize expenses across the board. In addition, to seek business growth in the long term, Kyocera will make efforts to strengthen its management foundation while reinforcing our development of new products and new technologies.