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Kyocera Increases Profitability for Fiscal 2010

May 3, 2010
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Kyocera Corp. recently announced its consolidated financial results for the year ended March 31, 2010. During fiscal 2010, global production of digital consumer equipment showed signs of recovery, and there was steady growth in the solar energy market, especially in Japan, due to expanded government subsidies. However, the company’s revenues were impacted by the appreciation of the yen against the euro and U.S. dollar. Consequently, while consolidated net sales for fiscal 2010 exceeded the company’s original and upwardly revised forecasts, they represent a 4.9% decrease compared with the prior year’s results, to 1,073,805 million yen ($11,546 million).

In response to the challenge of an overall reduction in sales, Kyocera strived to improve profitability and strengthen the foundation of each business segment by reducing costs in all areas of the company, and by improving productivity throughout the Kyocera Group. Compared to the prior year, profit from operations for fiscal 2010 increased 47.1% to 63,860 million yen ($687 million), despite a loss on accounts receivable from WILLCOM, Inc. totaling 8,961 million yen ($96 million).

In addition, income before income taxes increased 8.6% to 60,798 million yen ($654 million), despite an impairment loss on an investment in WILLCOM Inc. totaling 19,987 million yen ($215 million). Net income attributable to shareholders of Kyocera Corp. increased 35.9% to 40,095 million yen ($431 million).

In the components business, sales decreased 4.6% to 550,535 million yen ($5,920 million); however, operating profit increased 55.6% to 49,535 million yen ($533 million). In the equipment business, sales decreased 5.9% to 421,483 million yen ($4,532 million); however, operating profit increased by 11,581 million yen ($125 million), from a loss in fiscal 2009 to a profit of 7,365 million yen ($79 million) in fiscal 2010.

Kyocera believes the global economy will continue to move toward recovery in the year ending March 31, 2011 (fiscal 2011), as demand for digital consumer equipment grows (particularly in developing countries) and production increases in the industrial equipment and automotive markets. These trends, combined with the forecast for global growth in the solar energy market, lead Kyocera to expect an improved business environment in fiscal 2011.

Kyocera will continue to strengthen the foundations of its businesses with initiatives carried over from fiscal 2010 to reduce costs while capitalizing on opportunities for growth. The company will also strive to improve performance by reinforcing new product development, aggressively launching new products and cultivating new markets.

In the components business, Kyocera will expand manufacturing capacity to meet increasing demand for products used in digital consumer equipment while seeking to expand sales in emerging markets. Kyocera will also meet strong demand in the solar energy business through expanded production capacity and sales channels. In the equipment business, Kyocera will introduce new products in response to evolving market needs, with plans to further expand sales and profits globally and improve profitability in its telecommunications equipment business.

Additional details are available at http://global.kyocera.com.

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