KYOCERA Announces Consolidated Financial Results for Year Ended March 31, 2017
–Kyocera Corporation (NYSE:KYO)(TOKYO:6971) today announced its consolidated financial results for the fiscal year ended March 31, 2017 (“fiscal year 2017”), as summarized below. Complete details are available at: http://global.kyocera.com/ir/financial/f_results.html
| Consolidated Results: Year-Over-Year | ||||||||||||
| Unit: Millions (except percentages and per-share amounts) | ||||||||||||
| Year Ended March 31, | ||||||||||||
| 2016 (FY16) in JPY |
2017 (FY17) in JPY |
Increase (Decrease) |
2017 (FY17) in USD |
2017 (FY17) in EUR |
||||||||
| Amount
in JPY |
% | |||||||||||
| Net sales: | 1,479,627 | 1,422,754 | (56,873) | (3.8) | 12,703 | 11,856 | ||||||
| Profit from operations: | 92,656 | 104,542 | 11,886 | 12.8 | 933 | 871 | ||||||
| Income before income taxes: | 145,583 | 137,849 | (7,734) | (5.3) | 1,231 | 1,149 | ||||||
| Net income attributable to shareholders of Kyocera Corporation: |
109,047 | 103,843 | (5,204) | (4.8) | 927 | 865 | ||||||
| Diluted earnings per share attributable to shareholders of Kyocera Corporation: |
297.24 | 282.62 | － | － | 2.52 | 2.36 | ||||||
| Note on exchange rates: U.S. dollar (USD) and euro (EUR) conversions are provided above and in the Q4 chart below as a convenience to the reader, based on the rates of USD1 = JPY112 and EUR1 = JPY120, rounded to the nearest unit (as of March 31, 2017) | ||||||||||||
Summary
Growth in automotive markets (especially Asia) and expanded investment in communications infrastructure brought rising demand and revenue in the fine ceramic components and semiconductor components businesses during fiscal year 2017. However, consolidated net sales decreased 3.8% over the prior year, to JPY1,422,754 (USD12,703) million, due to the following factors:
- Sales in the solar energy business decreased due primarily to market price erosion.
- Revenue in the telecommunications equipment business decreased as the segment’s product strategy was refocused toward higher-margin offerings.
- Currency exchange fluctuations impacted sales negatively during fiscal year 2017, as the prior year’s trend of a depreciating yen was reversed.
Profit from operations increased 12.8%, to JPY104,542 (USD933) million, due mainly to continued cost reduction efforts as well as the absence of impairment losses on goodwill and long lived assets recorded in fiscal 2016. Income before income taxes decreased 5.3%, to JPY137,849 (USD1,231) million, due to the absence of an asset-sale gain that totaled approximately JPY20 billion in the prior fiscal year. Net income attributable to shareholders of Kyocera Corporation decreased 4.8%, to JPY103,843 (USD927) million.
| Consolidated Q4 Results, Year-Over-Year | ||||||||||||
| Unit: Millions (except percentages) | ||||||||||||
| Three Months Ended March 31, | ||||||||||||
| 2016 (FY16-Q4) in JPY |
2017 (FY17-Q4) in JPY |
Increase (Decrease) |
2017 (FY17-Q4) in USD |
2017 (FY17-Q4) in EUR |
||||||||
| Amount
in JPY |
% | |||||||||||
| Net sales: | 386,597 | 408,126 | 21,529 | 5.6 | 3,644 | 3,401 | ||||||
| Profit from operations: | 26,636 | 37,440 | 10,804 | 40.6 | 334 | 312 | ||||||
| Income before income taxes: | 48,193 | 39,143 | (9,050) | (18.8) | 349 | 326 | ||||||
| Net income attributable to shareholders of Kyocera Corporation: |
49,543 | 32,991 | (16,552) | (33.4) | 295 | 275 | ||||||
| (See note above regarding exchange rates.) | ||||||||||||
Consolidated Forecast: Year Ending March 31, 2018
The year ending March 31, 2018 will bring a continuation of the trends toward more powerful and functional mobile communications devices, including smartphones, and rapidly proliferating applications for the Internet of Things (IoT). At the same time, we expect production levels to remain brisk in the automotive and semiconductor-related markets. For optimum financial results, Kyocera will continue to invest actively in these robust markets, focusing on miniature, high-performance components and other products that can win high market share.
The company will expand efforts to raise profitability by reducing costs, particularly in the solar energy and telecommunication equipment businesses, which reorganized production systems and implemented other structural reforms in the prior fiscal year. Finally, under its new leadership, Kyocera will aggressively investigate all avenues to expand its existing businesses and create new business opportunities — by strengthening its competitiveness, pursuing technology synergies among its diverse product segments and potential external partners, and by considering further M&A activity. Based on these prospects, Kyocera makes the following forecast of consolidated financial results for the year ended March 31, 2018, as shown in the table below.
| Unit: Yen in millions (except percentages, per-share amounts and exchange rates) | ||||||
| Fiscal 2017 Results |
Fiscal 2018 Forecast |
Increase (Decrease) (%) to Fiscal 2017 Results |
||||
| Net sales: | 1,422,754 | 1,500,000 | 5.4 | |||
| Profit from operations: | 104,542 | 120,000 | 14.8 | |||
| Income before income taxes: | 137,849 | 150,000 | 8.8 | |||
| Net income attributable to shareholders of Kyocera Corporation: |
103,843 | 105,000 | 1.1 | |||
| Diluted earnings per share attributable to shareholders of Kyocera Corporation*: |
282.62 | 285.77 | – | |||
| Average USD exchange rate: | 108 | 108 | – | |||
| Average EUR exchange rate: | 119 | 115 | – | |||
| *Forecast of “Diluted earnings per share attributable to shareholders of Kyocera Corporation” is based on the diluted average number of shares outstanding during the year ended March 31, 2017. | ||||||
FORWARD-LOOKING STATEMENTS
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.
