Kyocera Corporation today announced its third-quarter financial results for the fiscal year ending March 31, 2015. The results are summarized below, both as an aggregation of Kyocera's first three fiscal quarters ("the period," i.e., the nine months ended Dec. 31, 2014), and as the third quarter alone ("the quarter," i.e., the three months ended Dec. 31, 2014).
Consolidated Financial Highlights: Nine Months Ended December 31, 2014
Unit: Millions (except percentages and per-share amounts)
Summary of Nine-Month Consolidated Financial Results
With regard to the principal markets served by Kyocera Corporation and its consolidated subsidiaries (the "Kyocera Group" or "Kyocera"), smartphone shipments increased in the digital consumer equipment sector, bringing demand not only for handsets, but also for the components they require; additionally, demand for automotive electronics grew as vehicle sales expanded, particularly in China and the United States. On the other hand, Japan's solar energy sector struggled amid the end of subsidies for new residential solar power systems and the suspension of utility-grid access applications.
Kyocera recorded its highest nine-month (Q1-Q3) consolidated revenue to date, led by increased sales in the Information Equipment Group, the Semiconductor Parts Group, and the Fine Ceramic Parts Group. Consolidated revenue for the third quarter (Q3) stood at a record high as well. Profit in the Applied Ceramic Products Group and the Telecommunications Equipment Group decreased during this nine-month period in comparison with the same period of the prior year, while profit in the Information Equipment Group, the Fine Ceramic Parts Group and the Electronic Device Group increased through sales growth and cost reductions.
In summary, consolidated net sales for the period increased 2.8%, to JPY1,101,692 (USD9,105) million, as compared with the previous period; profit from operations increased 0.6%, to JPY90,222 (USD746) million; income before income taxes increased 3.9%, to JPY114,667 (USD948) million; and net income attributable to shareholders of Kyocera Corporation increased 6.6%, to JPY73,971 (USD611) million.
Consolidated Financial Highlights: Third Quarter Ended Dec. 31, 2014
Unit: Millions (except percentages)
Consolidated Forecast: Year Ending March 31, 2015
For the three months ending March 31, 2015 ("the fourth quarter"), Kyocera forecasts continued strong demand for components in the industrial machinery and automotive-related markets. In addition, Kyocera expects sales in its equipment business to grow through efforts to cultivate new markets and aggressively launch new products, including mobile phone handsets and multifunctional document equipment. Conversely, sales in the solar energy-related business are projected to fall below forecasts made in October 2014, due primarily to stagnating demand as Japanese utility companies suspended grid-access applications, mainly for utility-scale solar projects.
In view of these circumstances and economic trends, Kyocera has revised its fiscal year 2015 forecasts of sales and average exchange rates from those announced in October 2014, as follows.
Consolidated Forecasts: Year Ending March 31, 2015
Unit: Yen in millions (except percentages, per-share amounts and exchange rates)
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.