KYOTO, Japan--(BUSINESS WIRE)--Kyocera Corporation (TOKYO:6971) today announced its consolidated financial results for the first half of fiscal year 2023, covering the six months ended September 30, 2022 (the “first half,” or “FY23-H1”), as summarized below. Complete details are available at: https://global.kyocera.com/ir/library/f_results.html
Consolidated Results of Operations: First Half
| Unit: Millions (except percentages and per-share amounts) | ||||||
| Six Months Ended September 30, | ||||||
2021
|
2022
|
Change |
2022
|
2022
|
||
Amount
|
% |
|||||
| Sales revenue: | 876,337 |
1,012,172 |
135,835 |
15.5 |
6,980 |
7,128 |
| Operating profit: | 75,679 |
76,488 |
809 |
1.1 |
528 |
539 |
| Profit before income taxes: | 99,351 |
104,311 |
4,960 |
5.0 |
719 |
735 |
| Profit attributable to owners of the parent: | 73,219 |
75,586 |
2,367 |
3.2 |
521 |
532 |
| Earnings per share attributable to owners of the parent (basic): | 202.01 |
210.60 |
－ |
－ |
1.45 |
1.48 |
| 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 = JPY145 and EUR1 = JPY142, rounded to the nearest unit (as of September 30, 2022) | ||||||
Summary
The unstable world situation further impacted supply chains during this first half, disrupting deliveries and creating strong inflationary pressure on the cost of raw materials. At the same time, the yen depreciated substantially in the foreign exchange market.
Despite supply and cost challenges, the company’s sales revenue reached a record first-half high, with increases in all three reporting segments compared to the prior first half. Recent capital investments in production infrastructure enabled the company to meet robust demand for components used in 5G- and semiconductor-related markets. Other notable revenue gains were made in the Industrial Tools and Document Solutions businesses. Additionally, the yen’s depreciation had the impact of increasing sales, after currency conversion, by approximately JPY103 billion (USD 710 million) compared to the prior first half. As a result, consolidated sales revenue increased by 15.5% over the prior first half, to JPY1,012,172 (USD 6,980) million.
Profits increased slightly, due mainly to an increased revenue as well as a favorable currency conversion factor, which alone added approximately JPY26 billion (USD179 million) to profit before income taxes. Together, these impacts more than offset a price increase of raw materials, a sales decrease in the Communications unit, and a one-time litigation settlement totaling approximately JPY7 billion (USD48 million).
Consolidated operating profit increased by 1.1% over the prior first half, to JPY76,488 (USD528) million; profit before income taxes increased by 5.0%, to JPY104,311 (USD719) million; and profit attributable to owners of the parent increased by 3.2%, to JPY75,586 (USD521) million.
Consolidated Results of Operations: Second Quarter
| Unit: Millions (except percentages) | ||||||
| Three Months Ended September 30, | ||||||
2021
|
2022
|
Change |
2022
|
2022
|
||
Amount
|
% |
|||||
| Sales revenue: | 455,625 |
520,218 |
64,593 |
14.2 |
3,588 |
3,664 |
| Operating profit: | 43,303 |
35,060 |
(8,243) |
(19.0) |
242 |
247 |
| Profit before income taxes: | 44,875 |
35,600 |
(9,275) |
(20.7) |
246 |
251 |
| Profit attributable to owners of the parent: | 32,459 |
25,612 |
(6,847) |
(21.1) |
177 |
180 |
| (See note above regarding exchange rates) | ||||||
Consolidated Forecasts: Year Ending March 31, 2023
The company’s full-year consolidated forecasts remain unchanged from those announced in April 2022. Although first-half results from the Communications unit were below forecast, consolidated results met the original projections, due mainly to increased sales of 5G- and semiconductor-related components, as well as the impact of yen depreciation. Global instability, supply challenges, rising materials costs and the prospect of a slowing economy create uncertainty for the third quarter and beyond. Nevertheless, the company will strive to acquire new business, expand sales, and further improve productivity to achieve our full-year consolidated forecasts.
The company has revised its currency exchange outlook, and now forecasts average rates of JPY134 to the U.S. dollar (from JPY115 earlier) and JPY137 to the euro (from JPY125 earlier).
| Unit: Yen in millions (except percentages, per-share amounts and exchange rates) | ||||||||
| Fiscal 2022 Results |
Fiscal 2023 Forecast Announced on April 28 |
Fiscal 2023 Forecast Announced on October 31 |
Change (%) from Fiscal 2022 Results |
|||||
| Sales revenue: | 1,838,938 |
2,000,000 |
2,000,000 |
8.8 |
||||
| Operating profit: | 148,910 |
174,000 |
174,000 |
16.8 |
||||
| Profit before income taxes: | 198,947 |
220,000 |
220,000 |
10.6 |
||||
| Profit attributable to owners of the parent: | 148,414 |
154,000 |
154,000 |
3.8 |
||||
| Earnings per share attributable to owners of the parent (basic): |
411.15 |
426.63 |
429.08 |
* | - |
|||
| Average USD exchange rate: | 112 |
115 |
134 |
- |
||||
| Average EUR exchange rate: | 131 |
125 |
137 |
- |
||||
| * Based on the average number of shares outstanding during the six months ended September 30, 2022 | ||||||||
Forward‐Looking Statements
Please refer to https://global.kyocera.com/ir/disclaimer.html
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, 2022, the company’s consolidated sales revenue totaled 1.8 trillion yen (approx. US$15.1 billion). Kyocera is ranked #665 on Forbes magazine’s 2022 “Global 2000” list of the world’s largest publicly traded companies, and has been named among “The World’s 100 Most Sustainably Managed Companies” by The Wall Street Journal.
