KYOTO, Japan–(BUSINESS WIRE)–
Kyocera Corporation (6971.T) today announced its consolidated financial results for the fiscal year ended March 31, 2019 (“fiscal year 2019” or “the period”), 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 prior fiscal year 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
For the second consecutive year, Kyocera Corporation (“the Company”) attained record consolidated sales revenue, totaling JPY1,623,710 (USD14,628) million, an increase of 3.0% over the prior year. The increase was driven by holistic sales expansion as well as mergers and acquisitions in both the Electronic Devices and the Industrial & Automotive Components segments. Sales revenue in the Life & Environment segment decreased due to a decline in orders for solar energy products.
Profits increased over the prior year due to the greater total sales revenue, as well as successful cost reduction efforts. Together, these factors more than offset an extraordinary expense of JPY52,313 (USD471) million related to the settlement of long-term purchase agreements for polysilicon raw material in the solar energy business, and an impairment loss totaling JPY16,184 (USD146) million related to machinery, equipment, goodwill and intangible assets in the organic materials business. As a result, operating profit increased by JPY4,124 (USD37) million, or 4.5%, to JPY94,823 (USD854) million; profit before income taxes increased by JPY10,618 (USD96) million, or 8.2%, to JPY140,610 (USD1,267) million; and profit attributable to owners of the parent increased by JPY24,073 (USD217) million, or 30.4%, to JPY103,210 (USD930) million in fiscal 2019 as compared with fiscal 2018, due in part to lower tax expenses. The major reasons for the lower tax expenses are that Kyocera’s U.S. subsidiaries, including AVX Corporation recorded additional tax expenses in the prior fiscal year due to tax law revisions in the United States. Additionally, Kyocera recognized deferred tax assets related to tax losses carried forward from the merger of Kyocera Display Corporation into Kyocera Corporation in fiscal 2019.
Averaged exchange rates during fiscal year 2019 show the Japanese yen unchanged against the U.S. dollar, at JPY111; and stronger by approximately 1.5% against the Euro, to JPY128, as compared to the averaged rates of the prior year. This had the effect of decreasing sales revenue and profit before income taxes by approximately JPY7,500 (USD68) million and JPY2,000 (USD18) million, respectively.
Consolidated Forecast: Year Ending March 31, 2020
The components businesses are expected to grow during the fiscal year ending March 31, 2020 (“fiscal 2020”), led by rising demand for 5G telecommunications infrastructure equipment, even as the smartphone market itself is expected to slow down. In automotive-related markets, rising adoption of advanced driver-assist systems (ADAS) and related products is expected to boost demand as well. In the Document Solutions segment, the company will seek growth through strategic mergers and acquisitions. Through these initiatives, the company will aim to achieve record sales revenue for the third consecutive year.
In fiscal 2020, the company forecasts increased depreciation costs resulting from aggressive capital investment, as well as higher costs associated with creating new businesses and developing new markets. In addition, one-time costs are planned for celebratory events recognizing the company’s 60th anniversary. The company will pursue the profit forecasts below by improving profitability in the solar energy and organic materials businesses, building on structural reforms implemented in fiscal 2019, and accelerating a company-wide project to double productivity through the use of artificial intelligence (AI) and automation technologies.
The company anticipates exchange rates of JPY105 to the U.S. dollar, and JPY120 to the euro, during the fiscal year ending March 31, 2020.
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Kyocera Corporation (6971.T) (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. Kyocera appears on the “Derwent Top 100 Global Innovators 2018-19” list by Clarivate Analytics and is ranked #612 on Forbes magazine’s 2018 “Global 2000” list of the world’s largest publicly traded companies.