Kyocera Corporation (NYSE:KYO)(TOKYO:6971) today announced its consolidated financial results for the first quarter of fiscal year 2014 (the three months ended June 30, 2013, or "Q1"), as summarized below. Complete details are available at: http://global.kyocera.com/ir/financial/f_results.html
Summary of Consolidated Financial Results
Digital consumer equipment, including the components required therein, represents the principal market for Kyocera Corporation and its consolidated subsidiaries ("Kyocera Group" or "Kyocera"). Compared with the three months ended June 30, 2012 (the "prior period"), Q1 brought a combination of sluggish demand for conventional mobile phones, PCs and flat-screen TVs, offset by significant demand growth for smartphones and mobile computing tablets. Additionally, Japan's solar energy market expanded significantly over the prior period, due primarily to growth in the public and commercial sectors stimulated by the recent feed-in tariff for renewable energy.
Consolidated net sales for Q1 increased by 11.4% compared to the prior period, to JPY331,655 (USD3,350) million, reflecting notable sales gains in the Applied Ceramic Products Group and the Information Equipment Group, as well as the effect of the yen's depreciation. Profit grew considerably, reflecting the impact of sales growth, enhanced productivity in the Components Business, and the absence of an environmental remediation charge of JPY21,300 (USD266) million*1 in the prior period at U.S.-based consolidated subsidiary AVX Corporation. Profit from operations increased to JPY25,398 (USD257) million compared with an operating loss of JPY2,002 million in the prior period; income before income taxes increased by 636.5%, to JPY34,813 (USD352) million; and net income attributable to shareholders of Kyocera Corporation increased by 244.8%, to JPY22,651 (USD229) million.
Kyocera experienced particularly strong sales growth in its Applied Ceramic Products Group, which includes its solar energy, industrial cutting tool, medical material, and ceramic kitchenware divisions. "In the solar energy market, which demands long-term reliability, we are experiencing rapid growth as a result of the strong performance of our products," stated Kyocera Corporation President Goro Yamaguchi. "Consequently, sales in this reporting segment rose to an all-time first-quarter high, and operating profit increased by 442% compared to the prior period."
Consolidated Forecasts for the Year Ending March 31, 2014
While uncertainties remain concerning the European and Chinese economies going forward, the Japanese and U.S. economies are expected to continue expanding in the second quarter, and the business environment is projected to improve in the digital consumer equipment and industrial machinery markets. In addition, demand for solar power generating systems is projected to continue rising in Japan.
Based on this business environment, there is no change to the sales and profit forecasts for fiscal 2014 that were announced on April 25, 2013. However, Kyocera has revised full-year exchange rate forecasts based on the results of the first quarter.
FORWARD-LOOKING STATEMENTS
Except for historical information contained herein, the matters set forth in this press release are forward-looking statements that involve risks and uncertainties including, but not limited to, product demand, competition, regulatory approvals, the effect of economic conditions and technological difficulties, and other risks detailed in the Company's filings with the U.S. Securities and Exchange Commission.
For more information about Kyocera: www.kyocera.eu
Summary of Consolidated Financial Results
Digital consumer equipment, including the components required therein, represents the principal market for Kyocera Corporation and its consolidated subsidiaries ("Kyocera Group" or "Kyocera"). Compared with the three months ended June 30, 2012 (the "prior period"), Q1 brought a combination of sluggish demand for conventional mobile phones, PCs and flat-screen TVs, offset by significant demand growth for smartphones and mobile computing tablets. Additionally, Japan's solar energy market expanded significantly over the prior period, due primarily to growth in the public and commercial sectors stimulated by the recent feed-in tariff for renewable energy.
Consolidated net sales for Q1 increased by 11.4% compared to the prior period, to JPY331,655 (USD3,350) million, reflecting notable sales gains in the Applied Ceramic Products Group and the Information Equipment Group, as well as the effect of the yen's depreciation. Profit grew considerably, reflecting the impact of sales growth, enhanced productivity in the Components Business, and the absence of an environmental remediation charge of JPY21,300 (USD266) million*1 in the prior period at U.S.-based consolidated subsidiary AVX Corporation. Profit from operations increased to JPY25,398 (USD257) million compared with an operating loss of JPY2,002 million in the prior period; income before income taxes increased by 636.5%, to JPY34,813 (USD352) million; and net income attributable to shareholders of Kyocera Corporation increased by 244.8%, to JPY22,651 (USD229) million.
Kyocera experienced particularly strong sales growth in its Applied Ceramic Products Group, which includes its solar energy, industrial cutting tool, medical material, and ceramic kitchenware divisions. "In the solar energy market, which demands long-term reliability, we are experiencing rapid growth as a result of the strong performance of our products," stated Kyocera Corporation President Goro Yamaguchi. "Consequently, sales in this reporting segment rose to an all-time first-quarter high, and operating profit increased by 442% compared to the prior period."
Consolidated Forecasts for the Year Ending March 31, 2014
While uncertainties remain concerning the European and Chinese economies going forward, the Japanese and U.S. economies are expected to continue expanding in the second quarter, and the business environment is projected to improve in the digital consumer equipment and industrial machinery markets. In addition, demand for solar power generating systems is projected to continue rising in Japan.
Based on this business environment, there is no change to the sales and profit forecasts for fiscal 2014 that were announced on April 25, 2013. However, Kyocera has revised full-year exchange rate forecasts based on the results of the first quarter.
FORWARD-LOOKING STATEMENTS
Except for historical information contained herein, the matters set forth in this press release are forward-looking statements that involve risks and uncertainties including, but not limited to, product demand, competition, regulatory approvals, the effect of economic conditions and technological difficulties, and other risks detailed in the Company's filings with the U.S. Securities and Exchange Commission.
For more information about Kyocera: www.kyocera.eu
