KYOCERA CORPORATION Consolidated Financial Results of Kyocera Corporation and its Subsidiaries for the Nine Months Ended December 31, 2016
The consolidated financial information is prepared in accordance with accounting principles generally accepted in the United States of America.
-
Consolidated Financial Results for the Nine Months Ended December 31, 2016
Consolidated results of operations (% of change from previous period)
Net income attributable to shareholders of
Net sales Profit from operations Income before income taxes Kyocera Corporation Million yen % Million yen % Million yen % Million yen %Nine months ended December 31, 2016 1,014,628 (7.2) 67,102 1.6 98,706 1.4 70,852 19.1
Nine months ended December 31, 2015 1,093,030 (0.8) 66,020 (26.8) 97,390 (15.1) 59,504 (19.6)
(Note) Comprehensive income:
66,794 million yen for the nine months ended December 31, 2016, (58.2)% of change from previous period 159,836 million yen for the nine months ended December 31, 2015, (43.8)% of change from previous period
Net income attributable to shareholders of Kyocera Corporation
per share - BasicNet income attributable to shareholders of Kyocera Corporation
per share - Diluted Yen YenNine months ended December 31, 2016 192.88 192.88
Nine months ended December 31, 2015 162.20 162.20
Consolidated financial condition
Total assets Total equity
-
Dividends
End of
End of
Dividends per share
End of
first quarter second quarter third quarter Year-end Annual Yen Yen Yen Yen YenYear ended March 31, 2016 - 50.00 - 50.00 100.00
Year ending March 31, 2017 - 50.00 - 50.00 100.00
Note:
Year-end and annual dividends per share for the year ending March 31, 2017 are the forecasts at the date of the submission of this report.
1
- Consolidated Financial Forecasts for the Year Ending March 31, 2017
Increase or decrease in significant subsidiaries during the nine months ended December 31, 2016: Not applicable
Adoption of concise quarterly accounting method or procedure: Not applicable
Changes in accounting policies:
Changes due to adoption of new accounting standards: Yes
Changes due to other than adoption of new accounting standards: Not applicable Please refer to the accompanying "2. OTHER INFORMATION" on page 10.
Number of shares (common stock):
Number of shares issued:
377,618,580 shares at December 31, 2016 377,618,580 shares at March 31, 2016
Number of treasury stock:
9,904,600 shares at December 31, 2016 10,761,503 shares at March 31, 2016
Average number of shares outstanding:
-
BUSINESS RESULTS, FINANCIAL CONDITION AND PROSPECTS
-
Business Results for the Nine Months Ended December 31, 2016
Economic Situation and Business Environment
During the nine months ended December 31, 2016 ("the nine months"), the Japanese economy recovered moderately, driven by improvement in exports and growing private-sector capital investment. Overseas, the U.S. economy expanded due mainly to an increase in personal consumption, while the European economy was sluggish. The growth rate in the Chinese economy continued to weaken despite an increase in sales of automobiles and houses. As for exchange rates for the nine months, the yen appreciated compared with the nine months ended December 31, 2015 ("the previous nine months") despite sudden depreciation of the yen after the U.S. presidential election in November 2016.
With regard to the principal markets for Kyocera Corporation and its subsidiaries ("Kyocera"), the automotive market remained firm on the back of increased sales in China and Europe. In the information and communications markets, demand for miniaturized highly functional components increased, while stagnation in the growth rate of smartphone shipment volume continued. In the solar energy market, product prices continued to erode worldwide and demand in Japan decreased due to the impact of reduction in purchase price under feed-in tariff in Japan.
Consolidated Financial Results
Consolidated net sales for the nine months decreased by ¥78,402 million, or 7.2%, compared with the previous nine months to
¥1,014,628 million due mainly to the negative impact of the yen's appreciation.
Profit from operations increased by ¥1,082 million, or 1.6%, to ¥67,102 million, compared with the previous nine months. Income before income taxes increased by ¥1,316 million, or 1.4%, to ¥98,706 million, and net income attributable to shareholders of Kyocera Corporation for the nine months increased by ¥11,348 million, or 19.1%, to ¥70,852 million, compared with the previous nine months.
Average exchange rates for the nine months were ¥107 to the U.S. dollar, marking appreciation of ¥15 (12.3%) and ¥118 to the Euro, marking appreciation of ¥16 (11.9%), from the previous nine months. As a result, net sales and income before income taxes after translation into yen for the nine months were pushed down by approximately ¥90 billion and approximately ¥23 billion, respectively, compared with the previous nine months.
Nine months ended December 31, Increase 2015 2016 (Decrease) Amount % Amount % Amount % (Yen in millions, except exchange rates)Net sales
¥1,093,030
100.0
¥1,014,628
100.0
¥(78,402)
(7.2)
Profit from operations
66,020
6.0
67,102
6.6
1,082
1.6
Income before income taxes
97,390
8.9
98,706
9.7
1,316
1.4
Net income attributable to shareholders of Kyocera Corporation
59,504
5.4
70,852
7.0
11,348
19.1
Average US$ exchange rate
122
-
107
-
(15)
(12.3)
Average Euro exchange rate
134
-
118
-
(16)
(11.9)
The negative impacts due to changes in foreign currency exchange rates for the nine months compared with the previous nine months
Net sales: approximately ¥90 billion
Income before income taxes: approximately ¥23 billion 3
Consolidated Results by Reporting Segment
Fine Ceramic Parts Group
Sales in this reporting segment slightly increased compared with the previous nine months due to an increase in sales of automotive components and components for semiconductor processing equipment, despite an inventory adjustment of components for smartphones such as inductor cores. Operating profit decreased compared with the previous nine months due mainly to the negative impact from the yen's appreciation and higher R&D expenses.
Semiconductor Parts Group
Sales in this reporting segment slightly increased compared with the previous nine months because a substantial increase in sales of ceramic packages for optical communications, etc. was offset by sluggish demand in printed wiring boards for communications infrastructure. Operating profit decreased due to the absence of approximately ¥12 billion of a gain on the sale of assets recorded in the previous nine months, as well as to the negative impact of the yen's appreciation and a decline in profit from the organic materials business.
Applied Ceramic Products Group
Sales in this reporting segment decreased compared with the previous nine months due to a decline in the sales of the solar energy business owing to sales price erosion and a decline in demand. Operating profit decreased due mainly to a decline in profit from the cutting tool business because of the negative impact of the yen's appreciation.
Electronic Device Group
Sales in this reporting segment decreased compared with the previous nine months due to sales price erosion and the negative impact of the yen's appreciation, despite increased demand for small-sized capacitors and crystal components. Operating profit increased, despite the decline in sales, due to the absence of approximately ¥18 billion of impairment losses on goodwill and other assets in the display business recorded in the previous nine months.
Telecommunications Equipment Group
Sales in this reporting segment decreased compared with the previous nine months due to a decline in sales volume resulting from a reduction in the production ratio of low-end mobile phones for the overseas market, which was based on Kyocera's product strategy specialized in distinctive mobile phones with high durability and other unique features. Although it was insufficient to offset accumulated loss for the six months up to September 30, 2016, operating profit was recorded in the three months ended December 31, 2016 as a result of product strategy and structural reforms.
Information Equipment Group
Japan
Sales in Japan decreased compared with the previous nine months due mainly to a decline in sales in the Telecommunications Equipment Group.
Asia
Sales in Asia decreased compared with the previous nine months due primarily to a decline in sales in the Semiconductor Parts Group and the Fine Ceramic Parts Group which were affected by the negative impact of the yen's appreciation.
United States of America
Sales in the United States of America decreased compared with the previous nine months due mainly to the negative impact of the yen's appreciation as well as to a decline in sales in the solar energy business.
Europe
Sales in Europe decreased compared with the previous nine months due mainly to a decline in sales in the Information Equipment Group and the Electronic Device Group which were affected by the negative impact of the yen's appreciation.
Others
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Financial Condition
Consolidated Cash Flows
Cash and cash equivalents at December 31, 2016 decreased by ¥43,294 million to ¥330,726 million from ¥374,020 million at March 31, 2016.
Cash flows from operating activities
Net cash provided by operating activities for the nine months decreased by ¥20,480 million to ¥95,214 million from ¥115,694 million for the previous nine months. This was due mainly to that cash flow adjustments related to receivables and inventories exceeded an increase in net income.
Cash flows from investing activities
Net cash used in investing activities for the nine months increased by ¥32,969 million to ¥98,732 million from ¥65,763 million for the previous nine months. This mainly reflected that proceeds from sales of property, plant and equipment decreased and acquisition of time deposit exceeded its withdrawal although proceeds from sales and maturities of securities increased.
Cash flows from financing activities
- Consolidated Financial Forecasts for the Year Ending March 31, 2017
General conditions in the Japanese or global economy;
Unexpected changes in economic, political and legal conditions in countries where we operate;
Various export risks which may affect the significant percentage of our revenues derived from overseas sales;
The effect of foreign exchange fluctuations on our results of operations;
Intense competitive pressures to which our products are subject;
Fluctuations in the price and ability of suppliers to provide the required quantity of raw materials for use in Kyocera's production activities;
Manufacturing delays or defects resulting from outsourcing or internal manufacturing processes;
Shortages and rising costs of electricity affecting our production and sales activities;
The possibility that future initiatives and in-process research and development may not produce the desired results;
Companies or assets acquired by us not produce the returns or benefits, or bring in business opportunities;
Inability to secure skilled employees, particularly engineering and technical personnel;
Insufficient protection of our trade secrets and intellectual property rights including patents;
Expenses associated with licenses we require to continue to manufacture and sell products;
Environmental liability and compliance obligations by tightening of environmental laws and regulations;
Unintentional conflict with laws and regulations or newly enacted laws and regulations;
Our market or supply chains being affected by terrorism, plague, wars or similar events;
Earthquakes and other natural disasters affecting our headquarters and major facilities as well as our suppliers and customers;
Credit risk on trade receivables;
Fluctuations in the value of, and impairment losses on, securities and other assets held by us;
Impairment losses on long-lived assets, goodwill and intangible assets;
Unrealized deferred tax assets and additional liabilities for unrecognized tax benefits; and
Changes in accounting principles.
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OTHER INFORMATION
Changes in accounting policies
Recently Adopted Accounting Standards
The accounting standards which Kyocera adopted on or after April 1, 2016 did not have material impacts on Kyocera's consolidated results of operations, financial condition and cash flows.
10
- CONSOLIDATED FINANCIAL STATEMENTS
-
Consolidated Balance Sheets (Unaudited)
March 31, 2016 December 31, 2016 Increase
Amount % Amount %
Current assets:
(Yen in millions)
(Decrease)Cash and cash equivalents
¥
374,020
¥
330,726
¥ (43,294)
Short-term investments in debt securities
101,566
81,867
(19,699)
Other short-term investments
213,613
240,702
27,089
Trade notes receivables
22,832
27,265
4,433
Trade accounts receivables
266,462
272,583
6,121
Less allowances for doubtful accounts and sales returns
(5,278)
(6,129)
(851)
Inventories
327,875
356,547
28,672
Other current assets
133,671
120,815
(12,856)
Total current assets
1,434,761
46.4
1,424,376
46.1
(10,385)
Non-current assets:
Investments and advances:
Long-term investments in debt and equity securities
1,131,403
1,124,154
(7,249)
Other long-term investments
20,130
23,364
3,234
Total investments and advances
1,151,533
37.2
1,147,518
37.1
(4,015)
Property, plant and equipment:
Land
59,914
60,094
180
Buildings
344,087
347,626
3,539
Machinery and equipment
841,895
857,789
15,894
Construction in progress
18,314
15,912
(2,402)
Less accumulated depreciation
(999,723)
(1,012,337)
(12,614)
Total property, plant and equipment
264,487
8.5
269,084
8.7
4,597
Goodwill
102,599
3.3
116,583
3.8
13,984
Intangible assets
59,106
1.9
56,126
1.8
(2,980)
Other assets
82,563
2.7
79,262
2.5
(3,301)
Total non-current assets
1,660,288
53.6
1,668,573
53.9
8,285
Total assets
¥3,095,049
100.0
¥ 3,092,949
100.0
¥ (2,100)
11
March 31, 2016
Amount %
December 31, 2016
Amount % (Yen in millions)
Increase
(Decrease)
Current liabilities:
Short-term borrowings
¥ 5,119
¥ 207
¥ (4,912)
Current portion of long-term debt
9,516
8,507
(1,009)
Trade notes and accounts payable
115,644
122,843
7,199
Other notes and accounts payable
82,758
56,108
(26,650)
Accrued payroll and bonus
59,959
51,302
(8,657)
Accrued income taxes
22,847
11,507
(11,340)
Other accrued liabilities
43,525
49,982
6,457
Other current liabilities
28,464
50,805
22,341
Total current liabilities
367,832 11.9
351,261 11.4
(16,571)
Non-current liabilities:
Long-term debt
18,115
16,656
(1,459)
Accrued pension and severance liabilities
46,101
43,488
(2,613)
Deferred income taxes
271,220
261,921
(9,299)
Other non-current liabilities
18,019
19,065
1,046
Total non-current liabilities
353,455
11.4
341,130
11.0
(12,325)
Total liabilities
721,287
23.3
692,391
22.4
(28,896)
Kyocera Corporation shareholders' equity:
Common stock
115,703
115,703
-
Additional paid-in capital
162,844
165,210
2,366
Retained earnings
1,571,002
1,605,125
34,123
Accumulated other comprehensive income
469,803
461,322
(8,481)
Common stock in treasury, at cost
(35,088)
(32,299)
2,789
Total Kyocera Corporation shareholders' equity
2,284,264
73.8
2,315,061
74.8
30,797
Noncontrolling interests
89,498
2.9
85,497
2.8
(4,001)
Total equity
2,373,762
76.7
2,400,558
77.6
26,796
Total liabilities and equity
¥3,095,049
100.0
¥3,092,949
100.0
¥ (2,100)
Note: Accumulated other comprehensive income is as follows:
March 31, 2016 December 31, 2016(Yen in millions)
Increase
(Decrease)Net unrealized gains on securities
¥517,190
¥507,718
¥
(9,472)
Net unrealized losses on derivative financial instruments
(488)
(634)
(146)
Pension adjustments
(42,648)
(43,178)
(530)
Foreign currency translation adjustments (4,251) (2,584) 1,667 Total ¥469,803 ¥461,322 ¥ (8,481)
12
-
Consolidated Statements of Income and Comprehensive Income (Unaudited)
Consolidated Statements of Income
Nine months ended December 31, Increase 2015 2016 (Decrease) Amount % Amount % Amount %(Yen in millions and shares in thousands, except per share amounts)
Net sales
¥1,093,030
100.0
¥1,014,628
100.0
¥(78,402)
(7.2)
Cost of sales
803,743
73.5
751,398
74.1
(52,345)
(6.5)
Gross profit
289,287
26.5
263,230
25.9
(26,057)
(9.0)
Selling, general and administrative expenses
209,124
19.2
196,128
19.3
(12,996)
(6.2)
Loss on impairment of goodwill
14,143
1.3
-
-
(14,143)
-
Profit from operations
66,020
6.0
67,102
6.6
1,082
1.6
Other income (expenses) :
Interest and dividend income
27,260
2.5
30,904
3.0
3,644
13.4
Interest expense
(1,098)
(0.1)
(566)
(0.1)
532
-
Foreign currency transaction gains, net
3,343
0.3
553
0.1
(2,790)
(83.5)
Gains on sales of securities
277
0.0
103
0.0
(174)
(62.8)
Other, net
1,588
0.2
610
0.1
(978)
(61.6)
Total other income (expenses)
31,370
2.9
31,604
3.1
234
0.7
Income before income taxes
97,390
8.9
98,706
9.7
1,316
1.4
Income taxes
34,362
3.1
24,235
2.4
(10,127)
(29.5)
Net income
63,028
5.8
74,471
7.3
11,443
18.2
Net income attributable to noncontrolling interests
(3,524)
(0.4)
(3,619)
(0.3)
(95)
-
Net income attributable to shareholders of
Kyocera Corporation ¥ 59,504 5.4 ¥ 70,852 7.0 ¥ 11,348 19.1 Per share information:
Net income attributable to shareholders of
Average number of shares of common stock outstanding:
Kyocera Corporation:
Basic
¥
162.20
¥
192.88
Diluted
162.20
192.88
Basic
366,860
367,334
Diluted
366,860
367,334
Note:
Basic earnings per share attributable to shareholders of Kyocera Corporation is calculated based on the average number of shares of common stock outstanding during each period, and diluted earnings per share attributable to shareholders of Kyocera Corporation is calculated based on the diluted average number of shares of stock outstanding during each period.
13
Consolidated Statements of Comprehensive Income
Nine months ended December 31, Increase 2015 2016 (Decrease) Amount Amount Amount (Yen in millions)Net income ¥ 63,028 ¥ 74,471 ¥ 11,443
Other comprehensive income (loss)-net of taxes
Net unrealized gains (losses) on securities 102,450 (9,529) (111,979) Net unrealized losses on derivative financial instruments (86) (207) (121) Pension adjustments (1,007) (597) 410
Foreign currency translation adjustments (4,549) 2,656 7,205
Total other comprehensive income (loss) 96,808 (7,677) (104,485) Comprehensive income 159,836 66,794 (93,042) Comprehensive income (loss) attributable to noncontrolling interests (3,677) (4,351) (674)
Comprehensive income attributable to shareholders of
Kyocera Corporation ¥ 156,159 ¥ 62,443 ¥ (93,716)
- Notes to the consolidated financial statements Cautionary Statement for Premise of a Going Concern
Kyocera Corporation
shareholders' equityKyocera Corporation shareholders' equity
to total assets Million yen Million yen Million yen %December 31, 2016 3,092,949 2,400,558 2,315,061 74.8
March 31, 2016 3,095,049 2,373,762 2,284,264 73.8
(% of change from previous year)
Net income
Net income | attributable to | |||
attributable to | shareholders of | |||
Profit from | Income before | shareholders of | Kyocera Corporation | |
Net sales Million yen % | operations Million yen % | income taxes Million yen % | Kyocera Corporation Million yen % | per share Yen |
Year ending March 31, 2017 1,410,000 (4.7) | 95,000 2.5 | 130,000 (10.7) | 90,000 (17.5) | 245.01 |
Note:
Forecast of earnings per share attributable to shareholders of Kyocera Corporation is calculated based on the diluted average number of shares outstanding during the nine months ended December 31, 2016.
Notes:
367,333,543 shares for the nine months ended December 31, 2016
Presentation of Situation of Review Procedure
366,859,651 shares for the nine months ended December 31, 2015
The consolidated financial information included in this report is out of scope of the review procedure under the Financial Instruments and Exchange Law of Japan. The review procedure under the Financial Instruments and Exchange Law of Japan has not been completed at the date of disclosure of this report.
Instruction for Forecasts and Other Notes
Cautionary Statement for Forecasts:
With regard to forecasts set forth above, please refer to the accompanying "Forward-Looking Statements" on page 10.
Other Note:
This is an English translation of the Japanese original of the Consolidated Financial Results of Kyocera Corporation and its Subsidiaries for the Nine Months Ended December 31, 2016. The translation is prepared solely for the reference and convenience of foreigners. In the event of any discrepancy between this translation and the Japanese original, the latter shall prevail.
2
Accompanying Information
Sales in this reporting segment decreased compared with the previous nine months due to the negative impact of the yen's appreciation even though the sales volume for equipment was solid on the back of aggressive sales activities for new products. Operating profit increased compared with the previous nine months, however, due to the effect of launch of new products and cost reductions resulting from, among others, an improvement in productivity.
4
Net Sales by Reporting Segment
Nine months ended December 31, Increase 2015 2016 (Decrease) Amount % Amount % Amount % (Yen in millions)Fine Ceramic Parts Group | ¥ 70,342 | 6.4 | ¥ 71,027 | 7.0 | ¥ 685 | 1.0 |
Semiconductor Parts Group | 180,125 | 16.5 | 181,309 | 17.8 | 1,184 | 0.7 |
Applied Ceramic Products Group | 177,763 | 16.3 | 159,166 | 15.7 | (18,597) | (10.5) |
Electronic Device Group | 219,780 | 20.1 | 209,799 | 20.7 | (9,981) | (4.5) |
Total Components Business | 648,010 | 59.3 | 621,301 | 61.2 | (26,709) | (4.1) |
Telecommunications Equipment Group | 124,178 | 11.4 | 99,018 | 9.8 | (25,160) | (20.3) |
Information Equipment Group | 245,375 | 22.4 | 227,750 | 22.4 | (17,625) | (7.2) |
Total Equipment Business | 369,553 | 33.8 | 326,768 | 32.2 | (42,785) | (11.6) |
Others | 106,855 | 9.8 | 96,446 | 9.5 | (10,409) | (9.7) |
Adjustments and eliminations | (31,388) | (2.9) | (29,887) | (2.9) | 1,501 | - |
Net sales | ¥1,093,030 | 100.0 | ¥1,014,628 | 100.0 | ¥(78,402) | (7.2) |
Operating Profit (Loss) by Reporting Segment
Nine months ended December 31, Increase 2015 2016 (Decrease) Amount %* Amount %* Amount % (Yen in millions)Fine Ceramic Parts Group ¥ 11,860 16.9 ¥ 9,678 13.6 ¥ (2,182) (18.4)
Semiconductor Parts Group 37,435 20.8 19,389 10.7 (18,046) (48.2)
Applied Ceramic Products Group 12,498 7.0 9,258 5.8 (3,240) (25.9) Electronic Device Group 3,784 1.7 21,376 10.2 17,592 464.9
Total Components Business 65,577 10.1 59,701 9.6 (5,876) (9.0)
Telecommunications Equipment Group (3,945) - (4,246) - (301) - Information Equipment Group 17,484 7.1 20,041 8.8 2,557 14.6
Total Equipment Business 13,539 3.7 15,795 4.8 2,256 16.7 Others (1,988) - (2,708) - (720) -
Operating profit 77,128 7.1 72,788 7.2 (4,340) (5.6)
Corporate gains and equity in earnings (losses) of affiliates and
an unconsolidated subsidiary 20,250 - 26,995 - 6,745 33.3
Adjustments and eliminations 12 - (1,077) - (1,089) - Income before income taxes ¥ 97,390 8.9 ¥ 98,706 9.7 ¥ 1,316 1.4
* % to net sales of each corresponding segment
Note:
Kyocera Chemical Group, formerly included in "Others" until the year ended March 31, 2016, has been reclassified and included in the "Semiconductor Parts Group" commencing from the year ending March 31, 2017. Due to this change, results for the previous nine months have been reclassified to conform to the current presentation. As a result of this reclassification, a gain of approximately
¥12 billion from the sale of assets was included in the operating profit of the "Semiconductor Parts Group" for the previous nine months.
5
Net Sales by Geographic Area
Sales in Others decreased compared with the previous nine months due mainly to a decline in sales in the Information Equipment Group and the Semiconductor Parts Group which were affected by the negative impact of the yen's appreciation.
Nine months ended December 31, Increase 2015 2016 (Decrease) Amount % Amount % Amount % (Yen in millions)Japan ¥ 432,440 39.6 ¥ 417,735 41.2 ¥(14,705) (3.4)
Asia 237,453 21.7 223,516 22.0 (13,937) (5.9)
United States of America 191,704 17.5 169,137 16.7 (22,567) (11.8)
Europe 185,550 17.0 163,275 16.1 (22,275) (12.0)
Others 45,883 4.2 40,965 4.0 (4,918) (10.7) Net sales ¥1,093,030 100.0 ¥1,014,628 100.0 ¥(78,402) (7.2)
6
Net cash used in financing activities for the nine months decreased by ¥854 million to ¥46,790 million from ¥47,644 million for the previous nine months. This was due mainly to a decrease in year-end dividends paid.
Nine months ended December 31, Increase 2015 2016(Yen in millions)
(Decrease)Cash flows from operating activities | ¥ | 115,694 | ¥ | 95,214 | ¥(20,480) |
Cash flows from investing activities | (65,763) | (98,732) | (32,969) | ||
Cash flows from financing activities | (47,644) | (46,790) | 854 | ||
Effect of exchange rate changes on cash and cash equivalents | (2,185) | 7,014 | 9,199 | ||
Net increase (decrease) in cash and cash equivalents | 102 | (43,294) | (43,396) | ||
Cash and cash equivalents at beginning of period | 351,363 | 374,020 | 22,657 | ||
Cash and cash equivalents at end of period | ¥ | 351,465 | ¥ | 330,726 | ¥(20,739) |
7 |
Based on the current business environment, the forecast of consolidated performance for the year ending March 31, 2017 ("fiscal 2017") has been revised as set forth in the table below. Sales in the solar energy business and the Electronic Device Group are expected to be lower than previous forecast due respectively to changes in the business environment in the North American market and slow demand in the Japanese market, and to an inventory adjustment in respect of print heads for industrial equipment, among others. Delays from the original plan in the launch of new products also affected performance of the Information Equipment Group. Due to such changes in business situation, consolidated net sales forecast for fiscal 2017 are expected to be lower than previous forecast. Therefore, profit from operation has also been revised along with sales forecast revision.
Taking into account performance for the nine months, Kyocera maintains its previous forecast of income before income taxes, while it has revised upward its forecast of net income attributable to shareholders of Kyocera Corporation for fiscal 2017. Forecast performance of each business segment has also been revised as set forth on the following page.
Kyocera will make efforts to increase sales and to achieve comprehensive cost reductions in order to achieve the forecast performance for fiscal 2017.
Results for
Forecasts for the year ending
March 31, 2017 announced on Increasethe year ended
March 31, 2016October 31, 2016
(Previous)January 31, 2017
(Revised)(Decrease)
to Results Amount % Amount % Amount % % (Yen in millions, except exchange rates)Net sales | ¥1,479,627 | 100.0 | ¥1,520,000 | 100.0 | ¥1,410,000 | 100.0 | (4.7) |
Profit from operations | 92,656 | 6.3 | 110,000 | 7.2 | 95,000 | 6.7 | 2.5 |
Income before income taxes | 145,583 | 9.8 | 130,000 | 8.6 | 130,000 | 9.2 | (10.7) |
Net income attributable to shareholders of Kyocera Corporation | 109,047 | 7.4 | 85,000 | 5.6 | 90,000 | 6.4 | (17.5) |
Average US$ exchange rate | 120 | - | 104 | - | 108 | - | - |
Average Euro exchange rate | 133 | - | 115 | - | 119 | - | - |
8
Net Sales by Reporting Segment
Results for
Forecasts for the year ending
March 31, 2017 announced on Increasethe year ended
March 31, 2016October 31, 2016
(Previous)January 31, 2017
(Revised)(Decrease)
to Results Amount % Amount % Amount % % (Yen in millions)Fine Ceramic Parts Group | ¥ 95,092 | 6.4 | ¥ 101,000 | 6.7 | ¥ 96,000 | 6.8 | 1.0 |
Semiconductor Parts Group | 236,265 | 16.0 | 237,000 | 15.6 | 240,000 | 17.0 | 1.6 |
Applied Ceramic Products Group | 247,516 | 16.7 | 263,000 | 17.3 | 224,000 | 15.9 | (9.5) |
Electronic Device Group | 290,902 | 19.7 | 304,000 | 20.0 | 286,000 | 20.3 | (1.7) |
Total Components Business | 869,775 | 58.8 | 905,000 | 59.6 | 846,000 | 60.0 | (2.7) |
Telecommunications Equipment Group | 170,983 | 11.6 | 152,000 | 10.0 | 142,000 | 10.1 | (17.0) |
Information Equipment Group | 336,308 | 22.7 | 344,000 | 22.6 | 325,000 | 23.0 | (3.4) |
Total Equipment Business | 507,291 | 34.3 | 496,000 | 32.6 | 467,000 | 33.1 | (7.9) |
Others | 146,897 | 9.9 | 154,000 | 10.1 | 136,000 | 9.7 | (7.4) |
Adjustments and eliminations | (44,336) | (3.0) | (35,000) | (2.3) | (39,000) | (2.8) | - |
Net sales | ¥1,479,627 | 100.0 | ¥1,520,000 | 100.0 | ¥1,410,000 | 100.0 | (4.7) |
Operating Profit (Loss) by Reporting Segment
Results for
Forecasts for the year ending
March 31, 2017 announced on Increasethe year ended
March 31, 2016October 31, 2016
(Previous)January 31, 2017
(Revised)(Decrease)
to Results Amount %* Amount %* Amount %* % (Yen in millions)Fine Ceramic Parts Group | ¥ 15,745 | 16.6 | ¥ 15,000 | 14.9 | ¥ 13,500 | 14.1 | (14.3) |
Semiconductor Parts Group | 42,232 | 17.9 | 26,000 | 11.0 | 25,200 | 10.5 | (40.3) |
Applied Ceramic Products Group | 16,386 | 6.6 | 20,000 | 7.6 | 14,100 | 6.3 | (14.0) |
Electronic Device Group | 10,974 | 3.8 | 38,000 | 12.5 | 29,000 | 10.1 | 164.3 |
Total Components Business | 85,337 | 9.8 | 99,000 | 10.9 | 81,800 | 9.7 | (4.1) |
Telecommunications Equipment Group | (4,558) | - | 4,200 | 2.8 | 1,000 | 0.7 | - |
Information Equipment Group | 27,106 | 8.1 | 23,000 | 6.7 | 26,100 | 8.0 | (3.7) |
Total Equipment Business | 22,548 | 4.4 | 27,200 | 5.5 | 27,100 | 5.8 | 20.2 |
Others | (1,722) | - | (6,000) | - | (2,700) | - | - |
Operating profit | 106,163 | 7.2 | 120,200 | 7.9 | 106,200 | 7.5 | 0.0 |
Corporate and others | 39,420 | - | 9,800 | - | 23,800 | - | (39.6) |
Income before income taxes | ¥ 145,583 | 9.8 | ¥ 130,000 | 8.6 | ¥ 130,000 | 9.2 | (10.7) |
* % to net sales of each corresponding segment
Note:
Kyocera Chemical Group, formerly included in "Others" until the year ended March 31, 2016, has been reclassified and included in the "Semiconductor Parts Group" commencing from the year ending March 31, 2017. Due to this change, results for the year ended March 31, 2016 have been reclassified to conform to the current presentation. As a result of this reclassification, a gain of approximately ¥12 billion from the sale of assets was included in the operating profit of the "Semiconductor Parts Group" for the year ended March 31, 2016.
9
Note: Forward-Looking StatementsCertain of the statements made in this document are forward-looking statements (within the meaning of Section 21E of the
U.S. Securities and Exchange Act of 1934), which are based on our current assumptions and beliefs in light of the information currently available to us. These forward-looking statements involve known and unknown risks, uncertainties and other factors. Such risks, uncertainties and other factors include, but are not limited to the following:
Such risks, uncertainties and other factors may cause our actual results, performance, achievements or financial condition to be materially different from any future results, performance, achievements or financial condition expressed or implied by these forward-looking statements. We undertake no obligation to publicly update any forward-looking statements included in this document.
Not applicable.
Cautionary Statement for Significant Changes in EquityNot applicable.
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Kyocera Corporation published this content on 31 January 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 31 January 2017 06:14:05 UTC.
Original documenthttp://global.kyocera.com/ir/news/pdf/rt170131_e.pdf
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