Kyocera Corporation (TOKYO:6971) today announced its consolidated financial results for the first half of fiscal year 2019, covering the six months ended Sept. 30, 2018 (the “first half,” or “FY19-H1”), as summarized below. From the start of this fiscal year, Kyocera Corporation and its consolidated subsidiaries have adopted International Financial Reporting Standards (“IFRS”) in lieu of U.S. Generally Accepted Accounting Principles. Financial figures for the previous first half (“FY18-H1,” ended Sept. 30, 2017) and previous fiscal year (“fiscal 2018,” ended March 31, 2018) have been reclassified below in accordance with IFRS for comparative analysis. Complete details are available at: https://global.kyocera.com/ir/library/f_results.html

Consolidated Results of Operations: First Half

Unit: Millions (except percentages and per-share amounts)
    Six Months Ended September 30,
  2017

(FY18-H1)

in JPY

  2018

(FY19-H1)

in JPY

  Change         2018

(FY19-H1)

in USD

  2018

(FY19-H1)

in EUR

Amount

in JPY

%    
Sales revenue: 738,345 800,638 62,293   8.4 7,023 6,065
Operating profit: 69,272 82,601 13,329   19.2 725 626
Profit before income taxes: 90,788 105,689 14,901   16.4 927 801

Profit attributable to owners of
the parent:

63,441 78,394 14,953   23.6 688 594

Earnings per share attributable
to owners of the parent (basic):

  172.53   216.15   －     －   1.90   1.64

Note on exchange rates: U.S. dollar (USD) and euro (EUR) conversions are provided above as a convenience to the reader, based on the rates of USD1 = JPY114 and EUR1 = JPY132, rounded to the nearest unit (as of September 28, 2018)

Summary

Sales revenue in the first half totaled JPY800,638 (USD7,023) million, an increase of JPY62,293 (USD546) million, or 8.4%, as compared with the same period of the prior year. This increase can be attributed to new revenue from businesses acquired through M&A during fiscal 2018, as well as holistic revenue gains attained by the components business segments and the document solutions product line. As a result, the company attained record first-half sales revenue for a second consecutive year.

Operating profit increased 19.2% over the prior first half, to JPY82,601 (USD725) million, due to sales expansion and cost reduction efforts at each business segment.

Profit before income taxes increased 16.4%, to JPY105,689 (USD927) million; and profit attributable to owners of the parent increased 23.6%, to JPY78,394 (USD688) million, both of which reached record highs during the first half.

Average exchange rates for the first half reflect the Japanese yen strengthening against the U.S. dollar by 0.9%, to JPY110, and weakening against the euro by 3.2%, to JPY130, as compared with the same period of the prior year. As a result, sales revenue and profit before income taxes were pushed up by approximately JPY1,000 (USD9) million and JPY1,500 (USD13) million, respectively, as compared with the prior first half.

Consolidated Results of Operations: Second Quarter

Unit: Millions (except percentages)
    Three Months Ended September 30,
  2017

(FY18-Q2)

in JPY

  2018

(FY19-Q2)

in JPY

  Change   2018

(FY19-Q2)

in USD

  2018

(FY19-Q2)

in EUR

Amount

in JPY

  %
Sales revenue: 393,183 413,154 19,971   5.1 3,624 3,130
Operating profit: 38,012 45,497 7,485   19.7 399 345
Profit before income taxes: 41,435 50,201 8,766   21.2 440 380

Profit attributable to owners of
the parent:

  28,415   36,110   7,695     27.1   317   274
(See note above regarding exchange rates.)
 

Consolidated Forecasts: Year Ending March 31, 2019

The company’s FY19-H1 financial results were in line with original projections, which anticipated robust demand for industrial components, automotive components and electronic devices. While the smartphone supply chain will experience seasonal procurement adjustments during the second half, ending March 31, 2019, demand for components used in industrial machinery and automobiles is expected to remain robust. Sales in the equipment & systems business are expected to increase as a result of sales promotion activities conducted by the document solutions group; and profitability enhancement measures are expected to show results in the telecommunications equipment business. Although revenue from the solar energy business will result below initial projections, gains in other areas are expected to offset this. Consequently, the company makes no revision to the sales revenue and profit forecasts for the year ending March 31, 2019 that it announced on April 26, 2018.

Unit: Yen in millions (except percentages, per-share amounts and exchange rates)  
   

Fiscal 2018
Results

 

Fiscal 2019
Forecast
Announced on
April 26

 

Fiscal 2019
Forecast
Announced on
October 30

Change

(%) from

Fiscal 2018

Results

Sales revenue: 1,577,039 1,650,000 1,650,000 4.6
Operating profit: 90,699 154,000 154,000 69.8
Profit before income taxes: 129,992 190,000 190,000 46.2

Profit attributable to owners of
the parent:

79,137 134,000 134,000 69.3

Earnings per share attributable
to owners of the parent (basic):

215.22 364.42 369.47 * -
Average USD exchange rate: 111 105 105 -
Average EUR exchange rate: 130 130 130 -

*Forecast of “Earnings per share attributable to owners of the parent (basic)” is calculated using the average number of shares outstanding during the six months ended September 30, 2018.

Forward‐Looking Statements
Please refer to https://global.kyocera.com/ir/disclaimer.html

About KYOCERA

Kyocera Corporation (TOKYO:6971) (https://global.kyocera.com/), the parent and global headquarters of the Kyocera Group, was founded in 1959 as a producer of fine ceramics (also known as “advanced ceramics”). By combining these engineered materials with metals and integrating them with other technologies, Kyocera has become a leading supplier of industrial and automotive components, semiconductor packages, electronic devices, solar power generating systems, printers, copiers, and mobile phones. During the year ended March 31, 2018, the company’s sales revenue totaled 1.58 trillion yen (approx. USD14.9 billion). Kyocera appears on the “Top 100 Global Innovators” list by Clarivate Analytics and is ranked #612 on Forbes magazine’s 2018 “Global 2000” list of the world’s largest publicly traded companies.