KYOTO, Japan--(BUSINESS WIRE)--
(TOKYO:6971) today announced its consolidated third-quarter financial results for the fiscal year ending March 31, 2020. Results are summarized below, both as an aggregation of Kyocera’s first three fiscal quarters (the “period,” i.e., nine months), and as the third quarter alone (the “quarter,” i.e., three months) ended Dec. 31, 2019. Complete details are available at:
Consolidated Financial Highlights: Nine Months Ended December 31, 2019
| Unit: Millions (except percentages and per-share amounts) | ||||||
Nine Months Ended December 31, |
||||||
2018
|
2019
|
Change |
2019
|
2019
|
||
Amount
|
% |
|||||
| Sales revenue: | 1,214,417 |
1,196,885 |
(17,532) |
(1.4) |
10,881 |
9,731 |
| Operating profit: | 60,576 |
94,860 |
34,284 |
56.6 |
862 |
771 |
| Profit before income taxes: | 104,100 |
141,629 |
37,529 |
36.1 |
1,288 |
1,151 |
| Profit attributable to owners of the parent: | 79,419 |
101,265 |
21,846 |
27.5 |
921 |
823 |
| Earnings per share attributable to owners of the parent (basic): | 219.17 |
279.58 |
－ | － | 2.54 |
2.27 |
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 = JPY110 and EUR1 = JPY123, rounded to the nearest unit (as of December 30, 2019) |
||||||
Summary
China’s economic slowdown and continued inventory adjustments led to decreased revenue from the Electronic Devices business during this period, which offset new revenue contributions from M&A in the Industrial & Automotive Components business. As a result, consolidated sales revenue during the nine months ended December 31, 2019 decreased by JPY17,532 (USD159) million, or 1.4%, to JPY1,196,885 (USD10,881) million, as compared to the prior-year period.
Despite the lower sales revenue, profit increased year-over-year, due mainly to reduced expenses — led by the absence of approximately JPY68.5 billion (USD623 million) in non-recurring charges from the prior-year period, which included one-time costs in the Solar Energy and Organic Materials businesses. As a result, operating profit increased by JPY34,284 (USD312) million, or 56.6%, to JPY94,860 (USD862) million; profit before income taxes increased by JPY37,529 (USD341) million, or 36.1%, to JPY141,629 (USD1,288) million; and profit attributable to owners of the parent increased by JPY21,846 (USD199) million, or 27.5%, to JPY101,265 (USD921) million, as compared to the prior-year period.
Average exchange rates for the period reflect the Japanese yen’s appreciation of 1.8% against the U.S. dollar, to JPY109, and 6.2% against euro, to JPY121, as compared to the prior-year period. As a result, sales revenue and profit before income taxes were reduced by approximately JPY30 billion (USD273 million) and JPY10.5 billion (USD95 million) respectively, as compared to the prior-year period.
Consolidated Financial Highlights: Third Quarter
| Unit: Millions (except percentages) | ||||||
Three Months Ended December 31, |
||||||
2018
|
2019
|
Change |
2019
|
2019
|
||
Amount
|
% |
|||||
| Sales revenue: | 413,779 |
397,835 |
(15,944) |
(3.9) |
3,617 |
3,234 |
| Operating profit: | (22,025) |
34,540 |
56,565 |
- |
314 |
281 |
| Profit before income taxes: | (1,589) |
56,416 |
58,005 |
- |
513 |
459 |
| Profit attributable to owners of the parent: | 1,025 |
41,651 |
40,626 |
- |
379 |
339 |
| (See note above regarding exchange rates.) | ||||||
Guidance for the Fiscal Year Ending March 31, 2020
Consolidated full-year sales and profit results are expected to miss the forecasts announced on October 31, 2019. Profitability in the Solar Energy and Organic Materials businesses has improved through the structural reforms implemented in the prior fiscal year. In addition, demand for 5G- and IoT-related products is on an upward trend. However, automotive and industrial machinery demand is predicted to remain sluggish in many major global markets through the fourth quarter. Kyocera has therefore revised its consolidated financial forecasts as shown in the table below.
Consolidated Forecast: Year Ending March 31, 2020
| Unit: Yen in millions (except percentages, per-share amounts and exchange rates) | ||||||||
| Fiscal 2019 Results |
Fiscal 2020 Forecast Announced on October 31, 2019 |
Fiscal 2020 Forecast Announced on January 30, 2020 |
Change (%) from Fiscal 2019 Results |
|||||
| Sales revenue: | 1,623,710 |
1,700,000 |
1,625,000 |
0.1 |
||||
| Operating profit: | 94,823 |
140,000 |
118,000 |
24.4 |
||||
| Profit before income taxes: | 140,610 |
180,000 |
165,000 |
17.3 |
||||
| Profit attributable to owners of the parent: | 103,210 |
125,000 |
117,000 |
13.4 |
||||
| Earnings per share attributable to owners of the parent (basic): | 284.94 |
345.21 |
* | 323.02 |
** | - |
||
| Average USD exchange rate: | 111 |
105 |
108 |
- |
||||
| Average EUR exchange rate: | 128 |
120 |
120 |
- |
||||
| *Based on the average number of shares outstanding during the six months ended September 30, 2019 | ||||||||
| **Based on the average number of shares outstanding during the nine months ended December 31, 2019 | ||||||||
Forward‐Looking Statements
Please refer to
(TOKYO:6971) (), the parent and global headquarters of the Kyocera Group, was founded in 1959 as a producer of (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 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 publicly traded companies.
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