Business News

KYOCERA Announces Consolidated Financial Results for Six Months Ended September 30, 2010 (FY11-H1)

Thursday 28. October 2010 - Net Sales Increased 31.7% from FY10-H1, to JPY637 Billion

H1 Highlights:

Net Sales Increased 31.7% from FY10-H1, to JPY637 Billion
Operating Profit Increased 823.0% from FY10-H1, to JPY81.8 Billion, and 48.6% from FY10-H2
Full-Year Forecast for Operating Profit Upwardly Revised 20.5%, to JPY147 Billion
Kyocera Corporation (NYSE:KYO)(TOKYO:6971) today announced its consolidated financial results for the first half of fiscal year 2011 (the six months ended September 30, 2010), as summarized below. Complete details are available at: http://global.kyocera.com/ir/financial/f_results.html

Financial Results: Six Months Ended September 30
Unit: millions (except percentages and per share amounts)


2009
(FY10)
in JPY

2010
(FY11)
in JPY
Increase
2010
(FY11)
in USD

2010
(FY11)
in EUR
Amount
in JPY
%
Net sales 483,903 637,392 153,489 31.7 7,588 5,591
Profit from operations 8,858 81,758 72,900 823.0 973 717
Income before income taxes 17,148 89,493 72,345 421.9 1,065 785
Net income attributable to
shareholders of Kyocera Corporation

8,728 61,960 53,232 609.9 738 544
Diluted earnings per share
attributable to shareholders of
Kyocera Corporation
47.56 337.62 – – 4.02 2.96
Note: As a convenience to the reader, U.S. dollar (USD) and euro (EUR) conversions are based on the rates
of USD1 = JPY84 and EUR1 = JPY114, rounded to the nearest unit.
Summary of Consolidated Financial Results

The six months ended September 30, 2010 (the “first half”) showed a favorable business environment with increased sales and profit in every reporting segment, despite the yen’s appreciation. The company enjoyed increased demand for components, and launched new equipment products such as mobile phone handsets. As a result, consolidated net sales increased 31.7% compared to the previous first half, to JPY637,392 (USD7,588) million.

In addition to increased sales, efforts to enhance profitability produced measurable results in every business segment. Compared to the previous first half, profit from operations increased 823.0%, to JPY81,758 (USD973) million; income before income taxes increased 421.9%, to JPY89,493 (USD1,065) million; and net income attributable to shareholders of Kyocera Corporation increased 609.9%, to JPY61,960 (USD738) million.

Reference: Sequential Comparison (FY10-H2 to FY11-H1)

Unit: millions (except percentages)

H2
(FY10)
in JPY

H1
(FY11)
in JPY
Increase
Amount
in JPY
%
Net sales 589,902 637,392 47,490 8.1
Profit from operations 55,002 81,758 26,756 48.6
Income before income taxes 43,650 89,493 45,843 105.0
Net income attributable to
shareholders of Kyocera Corporation
31,367 61,960 30,593 97.5
Outlook and Future Prospects

During the first half of the fiscal year ending March 31, 2011, the pace of improvement in both sales and profits exceeded the company’s expectations. While the yen is expected to appreciate further, and uncertainty persists regarding global economic trends for the six months ending March 31, 2011 (the “second half”), the company nonetheless believes that consolidated sales and profit will exceed the previously announced forecasts due to rising demand for components used in applications including digital consumer equipment and industrial machinery, and increased sales of telecommunications equipment.

Based on these expectations, the company has upwardly revised its consolidated financial forecasts, with adjusted average exchange rates, for the full fiscal year ending March 31, 2011.

Consolidated Forecasts: Full Year Ending March 31, 2011


Unit: yen in millions (except percentages, per share amounts and exchange rates)

Forecasts for the year ending
March 31, 2011

Increase
% to Fiscal
2010 Results

Fiscal 2010
Results
Previously announced
Announced on
October 28, 2010
Net sales 1,073,805 1,200,000 1,260,000 17.3
Profit from operations 63,860 122,000 147,000 130.2
Income before income taxes 60,798 132,000 160,000 163.2
Net income attributable to shareholders of
Kyocera Corporation
40,095 85,000 105,000 161.9
Diluted earnings per share attributable to
shareholders of Kyocera Corporation
218.47 463.16 572.15 –
Average USD exchange rate 93 88 85 –
Average EUR exchange rate 131 110 112 –
Notes:

1. The above previously announced forecasts of net sales, profit from operations, income before income taxes and net income attributable to shareholders of Kyocera Corporation were announced on April 27, 2010. The above previously announced forecasts of diluted earnings per share attributable to shareholders of Kyocera Corporation and average exchange rates for fiscal 2011 were revised on July 29, 2010.

2. Forecast of diluted earnings per share attributable to shareholders of Kyocera Corporation announced on October 28, 2010 was computed based on the diluted average number of shares outstanding during the first half.

3. Forecast of diluted earnings per share attributable to shareholders of Kyocera Corporation announced on July 29, 2010 was computed based on the diluted average number of shares outstanding during the three months ended June 30, 2010.