Kyocera Corporation (TOKYO:6971) today announced its consolidated financial results for the three months ended June 30, 2019 (“the first quarter” or “FY20-Q1”), as summarized below. Complete details are available at:
https://global.kyocera.com/ir/library/f_results.html
Consolidated Results of Operations: Three Months Ended June 30
| Unit: Millions (except percentages and per-share amounts) | ||||||
| Three Months Ended June 30, | ||||||
| 2018 (FY19-Q1) in JPY |
2019 (FY20-Q1) in JPY |
Change | 2019 (FY20-Q1) in USD |
2019 (FY20-Q1) in EUR |
||
| Amount in JPY |
% | |||||
| Sales revenue: |
387,484 |
384,937 |
(2,547) |
(0.7) |
3,564 |
3,155 |
| Operating profit: |
37,104 |
22,629 |
(14,475) |
(39.0) |
210 |
185 |
| Profit before income taxes: |
55,488 |
45,486 |
(10,002) |
(18.0) |
421 |
373 |
| Profit attributable to owners of the parent: |
42,284 |
32,037 |
(10,247) |
(24.2) |
297 |
263 |
| Earnings per share attributable to owners of the parent (basic): |
116.29 |
88.56 |
－ | － |
0.82 |
0.73 |
| Note on exchange rates: U.S. dollar (USD) and euro (EUR) conversions are provided above as a convenience to the reader, based on the rates of USD1 = JPY108 and EUR1 = JPY122, rounded to the nearest unit (as of June 28, 2019) | ||||||
Summary
Sales revenue during the first quarter decreased 0.7% over the prior first quarter, to JPY384,937 (USD3,564) million. Higher sales of mobile phones in the Japanese market contributed to increased sales revenue in the Equipment & Systems Business. However, this was offset by decreased sales in the Components Business, stemming from sluggish growth in global smartphone and semiconductor-related markets, combined with uncertainty surrounding trade relations between the United States and China.
Despite profit growth in the Equipment & Systems Business, led by increased sales and profitability in the Communications Group, the company recorded decreased profit as compared to the prior first quarter, due to the impact of lower revenue in the Components Business; higher depreciation charges; increased research and development expenses; and approximately JPY5,500 (USD51) million in costs incurred through the Company’s 60th anniversary celebrations.
As a result, operating profit decreased 39.0%, to JPY22,629 (USD210) million; profit before income taxes decreased 18.0%, to JPY45,486 (USD421) million; and profit attributable to owners of the parent decreased 24.2%, to JPY32,037 (USD297) million.
Averaged exchange rates during the first quarter show the Japanese yen weakening against the U.S. dollar by approximately 0.9%, to JPY110; and strengthening against the euro by approximately 5.4%, to JPY123, as compared with averages from the prior first quarter. This had the effect of decreasing sales revenue by approximately JPY4,500 (USD42) million and profit before income taxes by approximately JPY2,000 (USD19) million.
Consolidated Forecasts: Year Ending March 31, 2020
First quarter financial results were not far from the Company’s original projections as a whole. Though uncertainty exists about the future of international relations and trade regulations, the Company will continue to enhance productivity and reduce costs in the second quarter (three months ending September 30, 2019) and beyond. Specific objectives include profitability improvement in the organic materials, telecommunications equipment, and solar energy businesses, in which the Company conducted structural reforms during the prior fiscal year. As a result, the Company has made no change to the sales revenue and profit forecasts for the year ending March 31, 2020 that it announced on April 25, 2019.
| Unit: Yen in millions (except percentages, per-share amounts and exchange rates) | ||||||
| Fiscal 2019 Results |
Fiscal 2020 Forecast |
Change (%) from Fiscal 2019 Results |
||||
| Sales revenue: |
1,623,710 |
1,700,000 |
4.7 |
|||
| Operating profit: |
94,823 |
140,000 |
47.6 |
|||
| Profit before income taxes: |
140,610 |
180,000 |
28.0 |
|||
| Profit attributable to owners of the parent: |
103,210 |
125,000 |
21.1 |
|||
| Earnings per share attributable to owners of the parent (basic): |
284.94 |
345.54 |
* |
– |
||
| Average USD exchange rate: |
111 |
105 |
– |
|||
| Average EUR exchange rate: |
128 |
120 |
– |
|||
| Based on the average number of shares outstanding during the three months ended June 30, 2019. | ||||||
FORWARD-LOOKING STATEMENTS
Please refer to https://global.kyocera.com/ir/disclaimer.html
Kyocera Corporation (TOKYO:6971) (https://global.kyocera.com/), the parent and global headquarters of the Kyocera Group, was founded in 1959 as a producer of fine ceramics (also known as “advanced ceramics”). By combining these engineered materials with metals and integrating them with other technologies, Kyocera has become a leading supplier of industrial and automotive components, semiconductor packages, electronic devices, solar power generating systems, printers, copiers and mobile phones. During the year ended March 31, 2019, the company’s consolidated sales revenue totaled 1.62 trillion yen (approx. USD14.6 billion). Kyocera appears on the “Derwent Top 100 Global Innovators 2018-19” list by Clarivate Analytics and is ranked #655 on Forbes magazine’s 2019 “GLOBAL 2000” list of the world’s largest public companies.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190801006164/en/