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KYOCERA Announces Consolidated Financial Results for Nine Months Ended December 31, 2008

^{Published on 2009-01-29 00:08:24, Last Modified on 2009-01-29 00:10:10 - Market Wire}
 

KYOTO, Japan--([ BUSINESS WIRE ])--Kyocera Corporation (NYSE:KYO)(TOKYO:6971) today announced its consolidated financial results for the nine months ended December 31, 2008.

Consolidated Financial Results

Sales and profits for these nine months decreased compared with the same period of the prior fiscal year due to a significant deterioration of the business environment, which brought a slowdown in demand and the yen's appreciation. Consolidated net sales amounted to JPY902,577 million (USD9,918 million), a decrease of 6.6% compared with the same period of the prior fiscal year.

Profit from operations decreased by 38.9%, to JPY67,257 million (USD739 million), due mainly to decreased demand and price erosion. Income before income taxes decreased by 37.6%, to JPY82,409 million (USD906 million). Net income decreased by 32.0%, to JPY56,768 million (USD624 million).

Average exchange rates were JPY103 to the U.S. dollar and JPY151 to the Euro, marking appreciation of JPY14 and JPY12, respectively, compared with the same period of the prior fiscal year. As a result, net sales and income before income taxes after translation into yen were, for calculation purposes, reduced by approximately JPY68.0 billion and JPY16.5 billion, respectively.

In the components business, sales and operating profit decreased in all reporting segments except for the Applied Ceramic Products Group. Consequently, overall sales in the components business decreased by 6.2%, to JPY478,535 million (USD5,259 million), and operating profit decreased by 38.3%, to JPY47,505 million (USD522 million).

In the equipment business, sales decreased by 8.0%, to JPY345,165 million (USD3,793 million); and operating profit decreased by 87.5%, to JPY3,943 million (USD43 million), compared with the same period of the prior fiscal year.

The "Others" segment includes various information and communications technology services, and materials used in manufacturing electronic components. Sales in this reporting segment decreased by 2.9%, to JPY96,973 million (USD1,066 million), due primarily to a decrease in sales of materials for electronic components. Operating profit increased by 126.4% compared with the same period of the prior fiscal year, to JPY15,241 million (USD167 million), due to gains from the sales of certain real estate both in Japan and other regions in the second quarter.

Outlook and Future Prospects

Based on the Company's performance for these nine months, as well as the outlook for the global economy and business environment for the three months ending March 31, 2009 (the "fourth quarter"), the following revisions have been made to Kyocera's consolidated financial forecasts for the year ending March 31, 2009 ("fiscal 2009") previously announced in October 2008.

Note: Diluted earnings per share, as set forth in the previous forecast, have been revised as of October 30, 2008 as set forth above based on a number of shares calculated using the weighted average method for the six months ended September 30, 2008.

The global economy and the market for digital consumer equipment are currently worse than expected when the previous forecast was announced in October 2008 and are expected to deteriorate even further in the fourth quarter. In addition, Kyocera may record one-off costs in the fourth quarter associated with certain assets required to be measured by fair value or market value. Accordingly, net sales and profits are forecasted to be lower than the previous forecast announced in October 2008.

In light of the extremely severe business environment, Kyocera will strive to secure orders by reinforcing sales and marketing activities, re-examining customer needs, and comprehensively reducing costs, which will include downsizing the plans of capital investment. Kyocera also aims to create highly profitable business foundations by strengthening the development of new products and future technologies throughout the Kyocera Group, and by promoting further enhancements in quality. The Kyocera Group will work cooperatively to implement these measures in order to steadily improve performance once demand recovers.

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.

Complete details of Kyocera's financial results for the nine months ended Dec. 31, 2008 are available at [ http://global.kyocera.com/ir/financial/f_results.html ]

[ About KYOCERA ]

[ Kyocera Corporation ] (NYSE:KYO) (TOKYO:6971) ([ http://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 plastics, and integrating them with other technologies, Kyocera has become a leading supplier of solar power generating systems, telecommunications equipment, laser printers, copiers, electronic components, semiconductor packages, cutting tools and industrial ceramics. During the year ended March 31, 2008, the company's net sales totaled 1.29 trillion yen (approximately USD12.9 billion).