KYOCY Kyocera Corporation (PK)

Kyocera Corporation (NYSE:KYO)(TOKYO:6971) today announced its consolidated financial results for the fiscal year ended March 31, 2018 (“fiscal year 2018” or “the period”), as summarized below. Complete details are available at: https://global.kyocera.com/ir/index.html

 

Consolidated Results: Year-Over-Year

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

2017(FY17)in JPY

 

2018(FY18)in JPY

 

Increase(Decrease)

 

2018(FY18)in USD

 

2018(FY18)in EUR

  Amount

in JPY

  % Net sales: 1,422,754 1,577,039 154,285 10.8 14,878 12,038 Profit from operations: 104,542 95,575 (8,967) (8.6) 902 730 Income before income taxes: 137,849 131,866 (5,983) (4.3) 1,244 1,007

Net income attributable toKyocera Corporation'sshareholders:

103,843 81,789 (22,054) (21.2) 772 624

Diluted earnings per shareattributable to KyoceraCorporation's shareholders:

  282.62   222.43   －   －   2.10   1.70 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 = JPY106 and EUR1 = JPY131, rounded to the nearest unit (as of March 30, 2018)  

SummaryKyocera Corporation (“the Company”) attained record consolidated net sales totaling JPY1,577,039 (USD14,878) million during the period, an increase of 10.8% over the prior year, due to the following factors:

• Robust demand for information and communications equipment, automobiles, and industrial machinery led the Company to expand production capacity, which enabled a revenue increase in the components business.
• Revenue in the Company’s document solutions business increased as well, following new product launches and aggressive sales promotion.
• Mergers and acquisitions made new contributions to the Company’s business.

Profitability in the components and document solutions businesses improved due to increased revenue, cost reduction, and rising productivity. However, long-term purchase agreements for polysilicon material used in the Company’s solar energy business led to a write-down totaling JPY50,165 (USD473) million. As a result, profit from operations decreased 8.6%, to JPY95,575 (USD902) million, and income before income taxes decreased 4.3%, to JPY131,866 (USD1,244) million. In addition, extraordinary tax expenses incurred by U.S. subsidiaries including AVX Corporation resulting primarily from U.S. tax law revisions reduced net income by approximately JPY11,000 (USD104) million. Net income attributable to Kyocera Corporation’s shareholders consequently decreased 21.2%, to JPY81,789 (USD772) million.

Averaged exchange rates during fiscal year 2018 show the Japanese yen weakened against the U.S. dollar by approximately 2.8%, to JPY111; and against the euro by approximately 9.2%, to JPY130, as compared with year-ago averages. This had the effect of increasing net sales and income before income taxes by approximately JPY39,000 (USD368) million and JPY16,000 (USD151) million, respectively.

 

Consolidated Q4 Results, Year-Over-Year

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

2017(FY17-Q4)in JPY

 

2018(FY18-Q4)in JPY

 

Increase(Decrease)

 

2018(FY18-Q4)in USD

 

2018(FY18-Q4)in EUR

 

Amount

in JPY

  % Net sales: 408,126 432,023 23,897 5.9 4,076 3,298 Profit from operations: 37,440 -13,409 (50,849)

-

-127 -102 Income before income taxes: 39,143 -12,998 (52,141) - -123 -99

Net income attributable toKyocera Corporation'sshareholders:

  32,991   -8,478   (41,469)   -   -80   -65 (See note above regarding exchange rates.)  

Consolidated Forecast: Year Ending March 31, 2019The year ending March 31, 2019 (fiscal year 2019) is expected to bring continued strong demand for components used in information and communications equipment, automobiles, and semiconductor fabrication, with particular demand for advanced components of high functionality. Continued production capacity expansions, combined with recent mergers and acquisitions, are expected to facilitate increased revenue in fiscal year 2019.

The Company expects rising profit in fiscal year 2019 resulting from increased sales, continued cost reduction, and productivity improvements attained through expanded deployment of industrial automation and AI-enabled processes.

Kyocera forecasts a strengthening of the Japanese yen during fiscal year 2019 to JPY105 against the U.S. dollar, marking appreciation of JPY6 (5.4%) compared with JPY111 for fiscal 2018, while forecasting JPY130 against the euro (unchanged from fiscal 2018).

As previously announced, Kyocera will transition from U.S. Generally Accepted Accounting Principles (U.S. GAAP) to International Financial Reporting Standards (IFRS), and has used IFRS to develop its forecasts for the year ending March 31, 2019 shown below.

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

Fiscal 2018Results(U.S.GAAP)

   

Fiscal 2019Forecast(IFRS)

 

Increase(%) toFiscal 2018Results

Net sales: 1,577,039 1,650,000 4.6 Profit from operations: 95,575 154,000 61.1 Income before income taxes: 131,866 190,000 44.1

Net income attributable toKyocera Corporation'sshareholders:

81,789 134,000 63.8

Diluted earnings per shareattributable to KyoceraCorporation's shareholders:

222.43 364.42

*

- Average USD exchange rate: 111 105 - Average EUR exchange rate:   130     130     - *Forecast of “Diluted earnings per share attributable to Kyocera Corporation's shareholders” is based on the diluted average number of shares outstanding during the year ended March 31, 2018.  

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; https://global.kyocera.com/index.html), 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 semiconductor packages, industrial and automotive components, electronic devices, solar power generating systems, printers, copiers, and mobile phones. Kyocera appears on the “Top 100 Global Innovators” list by Clarivate Analytics and is ranked #522 on Forbes magazine’s 2017 “Global 2000” listing of the world’s largest publicly traded companies.

View source version on businesswire.com: https://www.businesswire.com/news/home/20180425006954/en/

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