Kyocera Net Sales Essentially Flat in First Nine Months of Fiscal 2016
Kyocera Corp. recently announced its financial results for the first nine months of its fiscal year ending March 31, 2016. During the first nine months of the fiscal year, the economic environment surrounding Kyocera and its consolidated subsidiaries was characterized by growth in the automotive market, mainly in the U.S. and China, and an expanding market for smartphones globally.
Kyocera’s sales of components used in smartphones, industrial equipment and automotive applications increased steadily compared to last year. In contrast, sales decreased in the Telecommunications Equipment Group and the Applied Ceramic Products Group, which includes the solar energy business. Consolidated profit declined due primarily to the recording of costs of approximately ¥23 billion (~ $193 million), including an impairment of goodwill in the Electronic Device Group, and reduced profit in the Information Equipment Group, due mainly to the impact of currency exchange fluctuations.
Consolidated net sales for the nine-month period decreased 0.8% to approximately ¥1,093 billion (~ $9.03 billion) compared to the same period in the prior year. Profit from operations decreased 26.8%, to ¥66 billion (~ $546 million). Income before income taxes decreased 15.1%, to ¥97.39 billion (~ $805 million); and net income attributable to shareholders of Kyocera decreased 19.6%, to ¥59.5 billion (~ $492 million).
During the three months ended March 31, 2016, sales of components for semiconductor processing equipment and automobiles are expected to increase steadily. However, the business environment in the fourth quarter is expected to differ from that reflected in the company’s forecast of October 2015 due to the slowing of the Chinese economy and the effect of production adjustments among smartphone manufacturers.
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