KYOTO, Japan--(BUSINESS WIRE)--

(TOKYO:6971) today announced its consolidated financial results for the three months ended June 30, 2020 (the “first quarter,” or “FY21-Q1”), as summarized below. Complete details are available at:

Consolidated Results of Operations: Three Months Ended June 30

Summary

First-quarter sales revenue and profits both declined as compared to the prior-year period due to weaker demand in major markets, reflecting global economic stagnation caused primarily by the COVID-19 pandemic.

In the Components Business, sales revenue from the Electronic Devices Group declined due mainly to lower sales at AVX Corporation, a U.S. subsidiary, alongside a general slowdown in manufacturing, particularly in the automotive industry. In the Equipment & Systems Business, sales revenue from the Document Solutions Group declined as the trend toward remote work suppressed institutional demand for office equipment and consumables. As a result, total first-quarter sales revenue decreased by JPY67,843 (USD 628) million, or 17.6%, as compared to the prior year’s first quarter, to JPY317,094 (USD2,936) million.

Profit declined as well, due mainly to lower sales revenue in most business segments. Compared to the prior first quarter, operating profit decreased by JPY15,055 (USD139) million, or 66.5%, to JPY7,574 (USD70) million; profit before income taxes decreased by JPY15,075 (USD140) million, or 33.1%, to JPY30,411 (USD282) million; and profit attributable to owners of the parent decreased by JPY9,657 (USD89) million, or 30.1%, to JPY22,380 (USD207) million.

Averaged exchange rates during the first quarter show the Japanese yen strengthening against the U.S. dollar by approximately 1.8%, to JPY108; and strengthening against the euro by approximately 4.1%, to JPY118, as compared with averages from the prior first quarter. This had the effect of decreasing sales revenue by approximately JPY6 billion (USD56 million), and profit before income taxes by approximately JPY1.5 billion (USD14 million).

Consolidated Forecasts: Year Ending March 31, 2021

First-quarter financial results were not far from the company’s original projections as a whole, despite unfavorable impact resulting from the COVID-19 pandemic. Based on our continued assumption that major markets will gradually recover toward the end of fiscal 2021, commencing in the second quarter (i.e., the three months ending Sept. 30, 2020), the company is making no change at this time to the original forecasts for the year ending March 31, 2021 as announced on April 27, 2020. While concerns about the impact of COVID-19 and trade friction between the U.S. and China continue, demand in automotive-related markets seems to have bottomed out, and 5G-related markets are expected to grow. The company will continue to reduce costs and increase productivity thoroughly in our aim to achieve the original forecasts.

FORWARD-LOOKING STATEMENTS

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(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, smart energy systems, printers, copiers, and mobile phones. During the year ended March 31, 2020, the company’s consolidated sales revenue totaled 1.6 trillion yen (approx. US$14.7 billion). Kyocera is ranked #549 on Forbes magazine’s 2020 “Global 2000” list of the world’s largest publicly traded companies.

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