KYOCY Kyocera Corporation (PK)

Kyocera Corporation (NYSE:KYO)(TOKYO:6971) today announced its consolidated financial results for the fiscal year ended March 31, 2017 (“fiscal year 2017”), as summarized below. Complete details are available at: http://global.kyocera.com/ir/financial/f_results.html

 

Consolidated Results: Year-Over-Year

Unit: Millions (except percentages and per-share amounts)     Year Ended March 31,

2016(FY16)in JPY

 

2017(FY17)in JPY

 

Increase(Decrease)

 

2017(FY17)in USD

 

2017(FY17)in EUR

  Amount

in JPY

  % Net sales: 1,479,627 1,422,754 (56,873) (3.8) 12,703 11,856 Profit from operations: 92,656 104,542 11,886 12.8 933 871 Income before income taxes: 145,583 137,849 (7,734) (5.3) 1,231 1,149

Net income attributable toshareholders of KyoceraCorporation:

109,047 103,843 (5,204) (4.8) 927 865

Diluted earnings per shareattributable to shareholders ofKyocera Corporation:

  297.24   282.62   －   －   2.52   2.36 Note on exchange rates: U.S. dollar (USD) and euro (EUR) conversions are provided above and in the Q4 chart below as a convenience to the reader, based on the rates of USD1 = JPY112 and EUR1 = JPY120, rounded to the nearest unit (as of March 31, 2017)  

SummaryGrowth in automotive markets (especially Asia) and expanded investment in communications infrastructure brought rising demand and revenue in the fine ceramic components and semiconductor components businesses during fiscal year 2017. However, consolidated net sales decreased 3.8% over the prior year, to JPY1,422,754 (USD12,703) million, due to the following factors:

• Sales in the solar energy business decreased due primarily to market price erosion.
• Revenue in the telecommunications equipment business decreased as the segment’s product strategy was refocused toward higher-margin offerings.
• Currency exchange fluctuations impacted sales negatively during fiscal year 2017, as the prior year’s trend of a depreciating yen was reversed.

Profit from operations increased 12.8%, to JPY104,542 (USD933) million, due mainly to continued cost reduction efforts as well as the absence of impairment losses on goodwill and long lived assets recorded in fiscal 2016. Income before income taxes decreased 5.3%, to JPY137,849 (USD1,231) million, due to the absence of an asset-sale gain that totaled approximately JPY20 billion in the prior fiscal year. Net income attributable to shareholders of Kyocera Corporation decreased 4.8%, to JPY103,843 (USD927) million.

 

Consolidated Q4 Results, Year-Over-Year

Unit: Millions (except percentages)     Three Months Ended March 31,

2016(FY16-Q4)in JPY

 

2017(FY17-Q4)in JPY

 

Increase(Decrease)

 

2017(FY17-Q4)in USD

 

2017(FY17-Q4)in EUR

  Amount

in JPY

  % Net sales: 386,597 408,126 21,529 5.6 3,644 3,401 Profit from operations: 26,636 37,440 10,804 40.6 334 312 Income before income taxes: 48,193 39,143 (9,050) (18.8) 349 326

Net income attributable toshareholders of KyoceraCorporation:

  49,543   32,991   (16,552)   (33.4)   295   275 (See note above regarding exchange rates.)  

Consolidated Forecast: Year Ending March 31, 2018The year ending March 31, 2018 will bring a continuation of the trends toward more powerful and functional mobile communications devices, including smartphones, and rapidly proliferating applications for the Internet of Things (IoT). At the same time, we expect production levels to remain brisk in the automotive and semiconductor-related markets. For optimum financial results, Kyocera will continue to invest actively in these robust markets, focusing on miniature, high-performance components and other products that can win high market share.

The company will expand efforts to raise profitability by reducing costs, particularly in the solar energy and telecommunication equipment businesses, which reorganized production systems and implemented other structural reforms in the prior fiscal year. Finally, under its new leadership, Kyocera will aggressively investigate all avenues to expand its existing businesses and create new business opportunities — by strengthening its competitiveness, pursuing technology synergies among its diverse product segments and potential external partners, and by considering further M&A activity. Based on these prospects, Kyocera makes the following forecast of consolidated financial results for the year ended March 31, 2018, as shown in the table below.

  Unit: Yen in millions (except percentages, per-share amounts and exchange rates)    

Fiscal 2017Results

 

Fiscal 2018Forecast

 

Increase(Decrease)(%) toFiscal 2017Results

Net sales: 1,422,754 1,500,000 5.4 Profit from operations: 104,542 120,000 14.8 Income before income taxes: 137,849 150,000 8.8

Net income attributable toshareholders of KyoceraCorporation:

103,843 105,000 1.1

Diluted earnings per shareattributable to shareholders ofKyocera Corporation*:

282.62 285.77 - Average USD exchange rate: 108 108 - Average EUR exchange rate: 119 115 - *Forecast of “Diluted earnings per share attributable to shareholders of Kyocera Corporation” is based on the diluted average number of shares outstanding during the year ended March 31, 2017.  

FORWARD-LOOKING STATEMENTSExcept 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.

About KYOCERAKyocera Corporation (NYSE:KYO)(TOKYO:6971) (http://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 printers, copiers, mobile phones, solar power generating systems, electronic components, semiconductor packages, cutting tools and industrial ceramics. Kyocera appears on the “Top 100 Global Innovators” list by Clarivate Analytics and is ranked #531 on Forbes magazine’s 2016 “Global 2000” list of the world’s largest publicly traded companies.

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KYOCERA Corporation (Japan)Kenichi Hara, +81-(0)75-604-3416Corporate CommunicationsFax: +81-(0)75-604-3516webmaster.pressgl@kyocera.jp