July 31, 2014 - Kyocera Corporation today announced its consolidated financial results for the first quarter of fiscal year 2015 (the three months ended June 30, 2014, or "Q1"), as summarized below.
Financial Results: Three Months Ended June 30
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, 2013 (the "prior period"), Q1 brought essentially no growth in the mobile phone market globally as rising demand for smartphones was offset by contracting demand for conventional handsets. Growth in Japan's solar energy market slowed due mainly to the completion of government subsidies for residential solar power generating systems, and to the impact of higher consumption tax. Conversely, global sales of automobiles increased steadily, particularly in China and the United States.
Kyocera succeeded in recording its highest first-quarter consolidated revenue to date, led by rising sales in the Information Equipment and Fine Ceramic Parts segments. Additionally, sales rose in the Semiconductor Parts segment due to revenue from a new subsidiary acquired in the prior fiscal year. In contrast, Q1 sales decreased in the Applied Ceramic Products segment as well as the Electronic Device segment which undertook structural reforms in the prior fiscal year. Consolidated Q1 profit declined due to lower profitability in the Applied Ceramic Products, Semiconductor Parts, and Telecommunications Equipment segments, which offset increased profit in the Information Equipment and Electronic Device segments.
In summary, consolidated net sales increased 0.9% over the prior period, to JPY334,714 (USD3,314) million; profit from operations decreased 26.0%, to JPY18,782 (USD186) million; income before income taxes decreased 11.9%, to JPY30,680 (USD304) million; and net income attributable to shareholders of Kyocera Corporation decreased 14.1%, to JPY19,467 (USD193) million.
Consolidated Forecasts for the Year Ending March 31, 2015
From the second quarter onward, Kyocera expects component demand to increase among producers of digital consumer equipment, led by new smartphone introductions, as well as the proliferation of smartphones in emerging markets. Kyocera will seize such demand and aim to expand sales of miniaturized, high-performance components; increase market share; and improve profitability by pursuing thorough cost reductions. In the automotive market, Kyocera will strive to enhance customer development and expand sales by applying the collective strengths of the Kyocera Group.
In the Telecommunications Equipment segment, Kyocera will work to increase sales of mobile phones by launching new products both in Japan and overseas and by cultivating major customers outside of Japan. In the Information Equipment segment, Kyocera will also make efforts to expand sales of printers and multifunctional products both in mature and emerging markets, while striving to enhance profitability by increasing production in Vietnam. Based on the above, the Company makes no change to the sales and profit forecasts for fiscal year 2015 that were announced on April 28, 2014.
Consolidated Forecast: Year Ending March 31, 2015
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.