Kyocera Announces Consolidated Financial Results for Fiscal 2010
Apr 27, 2010
Kyocera Corporation announced its consolidated financial results for the year ended March 31, 2010.
During the year ended March 31, 2010 ("fiscal 2010"), global production of digital consumer equipment showed signs of recovery, and there was steady growth in the solar energy market, especially in Japan, due to expanded government subsidies. However, the company's revenues were impacted by the appreciation of the yen against the Euro and U.S. dollar. Consequently, while consolidated net sales for fiscal 2010 exceeded the company's original and upwardly revised forecasts, they represent a 4.9% decrease compared with the prior year's results, to JPY1,073,805 (USD11,546; Euro8,590) million.
In response to the challenge of an overall reduction in sales, Kyocera strived to improve profitability and strengthen the foundation of each business segment by reducing costs in all areas of the company, and by improving productivity throughout the Kyocera Group. As compared to the prior year, profit from operations for fiscal 2010 increased 47.1%, to JPY63,860 (USD687; Euro511) million, despite a loss on accounts receivable from WILLCOM, Inc. totaling JPY8,961 (USD96; Euro72) million. Income before income taxes increased 8.6%, to JPY60,798 (USD654; Euro486) million, despite an impairment loss on an investment in WILLCOM Inc. totaling JPY19,987 (USD215; Euro160) million. Net income attributable to shareholders of Kyocera Corporation increased 35.9%, to JPY40,095 (USD431; Euro321) million.
Exchange rates averaged JPY93 to the U.S. dollar and JPY131 to the Euro, representing appreciation of JPY8 (approximately 8%) and JPY12 (approximately 8%), respectively. As a result, net sales and income before income taxes (after full translation into yen) were, for calculation purposes, reduced by approximately JPY49.0 billion (USD527; Euro392 million) and JPY13.5 billion (USD145; Euro108 million) respectively.
In the components business, sales decreased 4.6%, to JPY550,535 (USD5,920; Euro4,404) million; however, operating profit increased 55.6%, to JPY49,535 (USD533; Euro396) million.
In the equipment business, sales decreased 5.9%, to JPY421,483 (USD4,532; Euro3,372) million; however, operating profit increased by JPY11,581 (USD125; Euro93) million, from a loss in fiscal 2009 to a profit of JPY7,365 (USD79; Euro59) million in fiscal 2010.
The "Others" segment comprises various businesses, including information and communications technology (ICT) services, and materials for electronic components. Sales in this reporting segment decreased 1.2%, to JPY124,577 (USD1,340; Euro997) million; and operating profit decreased 52.0%, to JPY6,769 (USD73; Euro54) million, due to the absence of gains on sales of fixed assets, including real estate, recorded in fiscal 2009, in the amount of approximately JPY9.4 billion (USD101; Euro75 million).
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