KYOCERA Announces Consolidated Financial Results for Third Quarter, Ended Dec. 31, 2020

KYOTO, Japan–(BUSINESS WIRE)–Kyocera Corporation (TOKYO: 6971) today announced its consolidated third-quarter financial results for the fiscal year ending March 31, 2021. Results are summarized below, both as an aggregation of Kyocera’s first three fiscal quarters (the “period,” i.e., nine months), and as the third quarter alone (the “quarter,” i.e., three months) ended Dec. 31, 2020. Complete details are available at: https://global.kyocera.com/ir/library/f_results.html

Consolidated Financial Highlights: Nine Months Ended December 31, 2020

Unit: Millions (except percentages and per-share amounts)
Nine Months Ended December 31,
2019
(FY20)
in JPY
2020
(FY21)
in JPY
Change 2020
(FY21)
in USD
2020
(FY21)
in EUR
Amount
in JPY
{23996c8f5258275f450f40d5a867c22ad72c04895f28059581bc525cc6cb4bd0}
Sales revenue:

1,196,885

1,100,534

(96,351)

(8.1)

10,582

8,666

Operating profit:

94,860

42,983

(51,877)

(54.7)

413

338

Profit before income taxes:

141,629

87,216

(54,413)

(38.4)

839

687

Profit attributable to owners of the parent:

101,265

63,931

(37,334)

(36.9)

615

503

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

279.58

176.39

1.70

1.39

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 = JPY104 and EUR1 = JPY127, rounded to the nearest unit (as of December 30, 2020)

Summary

While economic impact from the COVID-19 pandemic has been improving gradually, sales revenue and profit decreased in both the Components Business and the Equipment & Systems Business compared to the prior-year period.

In the Components Business, sales revenue was driven by rising production of 5G smartphone handsets globally, plus increased demand for fine ceramic components used in semiconductor processing equipment; however, sales of automotive and industrial components decreased compared to the prior-year period. In the Equipment & Systems Business, sales revenue declined due mainly to decreased demand for document printers, multi-function peripherals (MFPs), and consumables in the Document Solutions Group. As a result, sales revenue for the combined three fiscal quarters decreased by 8.1{23996c8f5258275f450f40d5a867c22ad72c04895f28059581bc525cc6cb4bd0}, to JPY1,100,534 (USD10,582) million, compared to the prior-year period.

Profit decreased compared to the prior-year period due to lower sales revenue and the recording of an impairment loss in the amount of JPY11,518 (USD111) million in the Smart Energy Business. Operating profit decreased by 54.7{23996c8f5258275f450f40d5a867c22ad72c04895f28059581bc525cc6cb4bd0}, to JPY42,983 (USD413) million; profit before income taxes decreased by 38.4{23996c8f5258275f450f40d5a867c22ad72c04895f28059581bc525cc6cb4bd0}, to JPY87,216 (USD839) million; and profit attributable to owners of the parent decreased by 36.9{23996c8f5258275f450f40d5a867c22ad72c04895f28059581bc525cc6cb4bd0}, to JPY63,931 (USD615) million, compared to the prior-year period.

Average exchange rates for the period show the Japanese yen strengthened by 2.8{23996c8f5258275f450f40d5a867c22ad72c04895f28059581bc525cc6cb4bd0} against the U.S. dollar, to JPY106, and weakened by 0.8{23996c8f5258275f450f40d5a867c22ad72c04895f28059581bc525cc6cb4bd0} against euro, to JPY122. As a result, sales revenue and profit before income taxes were reduced by approximately JPY 10 billion (USD96 million) and JPY 1 billion (USD10 million), respectively, as compared to the prior-year period.

Consolidated Financial Highlights: Third Quarter

Unit: Millions (except percentages)
Three Months Ended December 31,
2019
(FY20-Q3)
in JPY
2020
(FY21-Q3)
in JPY
Change 2020
(FY21-Q3)
in USD
2020
(FY21-Q3)
in EUR
Amount
in JPY
{23996c8f5258275f450f40d5a867c22ad72c04895f28059581bc525cc6cb4bd0}
Sales revenue:

397,835

404,497

6,662

1.7

3,889

3,185

Operating profit:

34,540

18,918

(15,622)

(45.2)

182

149

Profit before income taxes:

56,416

38,967

(17,449)

(30.9)

375

307

Profit attributable to owners of the parent:

41,651

29,571

(12,080)

(29.0)

284

233

(See note above regarding exchange rates.)

Guidance for the Fiscal Year Ending March 31, 2021

The Company’s consolidated full-year sales and profit forecast remains unchanged from that announced in April 2020. Although sales revenue and profit for the first three fiscal quarters decreased compared to the corresponding prior-year period, operating results have regained an upward trend from this year’s first-quarter low. The three months ending March 31, 2021 are not without COVID-19-related risk; however, we expect sustained demand for component products supporting the continuing 5G conversion and semiconductor technology evolution. In addition, revenue in the Equipment & Systems Business is also expected to increase due to the launching of new products. The company will continue to reduce costs and increase productivity thoroughly in our aim to achieve the original forecasts.

Consolidated Forecast: Year Ending March 31, 2021

Unit: Yen in millions (except percentages, per-share amounts and exchange rates)
Fiscal 2020
Results
Fiscal 2021
Forecast
Announced on
April 27, 2020
Fiscal 2021
Forecast
Announced on
February 1, 2021
Change
({23996c8f5258275f450f40d5a867c22ad72c04895f28059581bc525cc6cb4bd0}) from
Fiscal 2020
Results
 
Sales revenue:

1,599,053

1,500,000

1,500,000

(6.2)

Operating profit:

100,193

75,000

75,000

(25.1)

Profit before income taxes:

148,826

120,000

120,000

(19.4)

Profit attributable to owners of
the parent:

107,721

88,000

88,000

(18.3)

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

297.36

242.92

 

242.80

*

Average USD exchange rate:

109

105

105

Average EUR exchange rate:

121

115

123

*Based on the average number of shares outstanding during the nine months ended December 31, 2020

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, smart energy systems, printers, copiers, and mobile phones. During the year ended March 31, 2020, the company’s consolidated sales revenue totaled 1.6 trillion yen (approx. US$14.7 billion). Kyocera is ranked #549 on Forbes magazine’s 2020 “Global 2000” list of the world’s largest publicly traded companies.

Rachel C. Carpenter

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