Smartphone Demand Helps Drive Sales for Kyocera in Fiscal 2016 First Half
Kyocera Corp. recently announced consolidated financial results for the first half of fiscal year 2016. Consolidated net sales increased 1.2% over the prior period, to approximately $6 billion. Profit from operations increased 13.1%, to $516 million. Income before income taxes increased 14.5%, to $650 million, and net income attributable to shareholders of Kyocera Corp. increased 16.4%, to $423 million.
For the principal markets served by Kyoceraand its consolidated subsidiaries, the first half of the fiscal year saw rising global demand for smartphones in the digital consumer equipment market, as well as rising demand in automotive markets, mainly in the U.S. and Europe. In comparison with the first half of 2015, Kyocera recorded increased consolidated net sales due mainly to growth in the semiconductor parts, electronic devices, and fine ceramic parts segments, led by communications- and automotive-related components, as well as increased sales from the information equipment segment in the U.S. These increases were more than enough to offset sales decreases against the prior first half in the telecommunications equipment segment and the applied ceramic products segment, including the solar energy business. Consolidated first half profits also increased over the prior first half, reflecting profit increases in the Components Business and one-time profit from a sale of assets in the “Others” reporting segment. Together, these profit gains more than offset a decline in profits from the Equipment Business.
During the second half, the economic environment reportedly will face concerns regarding the slowing of the Chinese economy, as well as uncertainty with respect to the economies of Europe and emerging countries. Manufacturing volume in the digital consumer equipment market is expected to fall below levels estimated in April 2015, and the pace of expansion in automotive and industrial equipment markets is also expected to slow. Although Kyocera will strive to expand business despite these conditions, the company expects lower aggregate demand in principal markets for both the components and equipment segments than was projected at the beginning of fiscal 2016.
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