Kyocera Corporation (TOKYO:6971) today announced its consolidated financial results for the first half of fiscal year 2020, covering the six months ended September 30, 2019 (the “first half,” or “FY20-H1”), as summarized below. 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,
2018
(FY19-H1)
in JPY		 2019
(FY20-H1)
in JPY		 Change 2019
(FY20-H1)
in USD		 2019
(FY20-H1)
in EUR
Amount
in JPY		 %
Sales revenue:

800,638

799,050

(1,588)

(0.2)

7,399

6,772

Operating profit:

82,601

60,320

(22,281)

(27.0)

559

511

Profit before income taxes:

105,689

85,213

(20,476)

(19.4)

789

722

Profit attributable to owners of
the parent:

78,394

59,614

(18,780)

(24.0)

552

505

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

216.15

164.64

－ －

1.52

1.40

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 = JPY108 and EUR1 = JPY118, rounded to the nearest unit (as of September 30, 2019)

Summary

First-half sales revenue remained essentially flat compared to the same period of the prior year, totaling JPY799,050 (USD7,399) million, a decrease of JPY1,588 (USD15) million, or 0.2%. Japan-market sales of mobile phone handsets increased, contributing to higher sales revenue in the Equipment and Systems Business. However, slowing economic growth in China, combined with uncertainty surrounding U.S.-China trade relations, led to lower demand in the industrial machinery and automotive markets. This more than offset the increased revenue from mobile phone handsets and new revenue contributions from recent mergers and acquisitions.

Despite structural reforms implemented in the prior fiscal year, profit decreased due to the impact of lower sales revenue in the components business, currency exchange-rate fluctuations, and higher depreciation charges. Operating profit decreased 27.0% over the prior first half, to JPY60,320 (USD559) million; profit before income taxes decreased 19.4%, to JPY85,213 (USD789) million; and profit attributable to owners of the parent decreased 24.0%, to JPY59,614 (USD552) million.

Average exchange rates for the first half reflect the Japanese yen strengthening against the U.S. dollar by 0.9%, to JPY109, and strengthening against the Euro by 6.9%, to JPY121, as compared to the same period of the prior year. As a result, sales revenue and profit before income taxes were pushed down by approximately JPY18,500 (USD171) million and JPY6,500 (USD60) million, respectively, compared to the prior first half.

Consolidated Results of Operations: Second Quarter

Unit: Millions (except percentages)
Three Months Ended September 30,
2018
(FY19-Q2)
in JPY		 2019
(FY20-Q2)
in JPY		 Change 2019
(FY20-Q2)
in USD		 2019
(FY20-Q2)
in EUR
Amount
in JPY		 %
Sales revenue:

413,154

414,113

959

0.2

3,834

3,509

Operating profit:

45,497

37,691

(7,806)

(17.2)

349

319

Profit before income taxes:

50,201

39,727

(10,474)

(20.9)

368

337

Profit attributable to owners
of the parent:

36,110

27,577

(8,533)

(23.6)

255

234

(See note above regarding exchange rates.)

Consolidated Forecasts: Year Ending March 31, 2020

Though first-half demand for components fell short of expectations, the Kyocera group’s FY20-H1 consolidated financial results met original projections overall. In the second half, ending March 31, 2020, the company expects continued uncertainty in the global economic environment. However, there are signs of recovery in demand for some products in the information and communications market. Further, profitability improvement is expected due mainly to the result of structural reforms implemented in the prior fiscal year.
Consequently, the company makes no revision to the sales revenue and profit forecasts for the year ending March 31, 2020 that it announced on April 25, 2019.

Unit: Yen in millions (except percentages, per-share amounts and exchange rates)
Fiscal 2019
Results		Fiscal 2020
Forecast
Announced on
April 25		Fiscal 2020
Forecast
Announced on
October 31		Change
(%) from
Fiscal 2019
Results
 
Sales revenue:

1,623,710

1,700,000

1,700,000

4.7

Operating profit:

94,823

140,000

140,000

47.6

Profit before income taxes:

140,610

180,000

180,000

28.0

Profit attributable to owners of
the parent:

103,210

125,000

125,000

21.1

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

284.94

345.10

345.21

*

-

Average USD exchange rate:

111

105

105

-

Average EUR exchange rate:

128

120

120

-

*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, 2019.

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, 2019, the company’s consolidated sales revenue totaled 1.62 trillion yen (approx. USD14.6 billion). Kyocera appears on the “Derwent Top 100 Global Innovators 2018-19” list by Clarivate Analytics and is ranked #655 on Forbes magazine’s 2019 “GLOBAL 2000” list of the world’s largest public companies.