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KYOCERA Announces Consolidated Financial Results for Three Months Ended June 30, 2016

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KYOTO, Japan--(BUSINESS WIRE)--

Kyocera Corporation (NYSE: KYO)(TOKYO:6971) today announced its consolidated financial results for the first quarter of fiscal year 2017 (the three months ended June 30, 2016, or "Q1"), as summarized below. Complete details are available at: http://global.kyocera.com/ir/financial/f_results.html

 

Financial Results: Three Months Ended June 30

Unit: Millions (except percentages and per-share amounts)

    Three Months Ended June 30,

2015
(FY16-Q1)
in JPY

 

2016
(FY17-Q1)
in JPY

 

Increase
(Decrease)

 

2016
(FY17-Q1)
in USD

 

2016
(FY17-Q1)
in EUR

Amount
in JPY

  %
Net sales: 339,247 319,985 (19,262) (5.7) 3,109 2,797
Profit from operations: 32,583 12,270 (20,313) (62.3) 119 107
Income before income taxes: 47,010 24,798 (22,212) (47.2) 241 217

Net income attributable to
shareholders of Kyocera
Corporation:

31,575 17,453 (14,122) (44.7) 170 153

Diluted earnings per share
attributable to shareholders of
Kyocera Corporation:

  86.07   47.58   -   -   0.46   0.42

Note: As a convenience to the reader, U.S. dollar (USD) and euro (EUR) conversions are provided based on the rates of USD1 = JPY102.91 and EUR1 = JPY114.39 rounded to the nearest unit.

 

Summary of Consolidated Financial Results

With regard to the principal markets served by Kyocera Corporation and its consolidated subsidiaries (the "Kyocera Group" or "Kyocera"), rising vehicle sales primarily in Asia fueled continued strength in automotive manufacturing during Q1. In contrast, in the information and communications market, component demand slowed due to adjustments in smartphone production. Demand in the Japanese solar energy market also declined due to a reduction in the feed-in tariff benefiting solar power producers. In summary, sales in the Equipment Business remained flat compared with the prior Q1, while sales in the Components Business generally decreased.

On a consolidated basis, net sales decreased 5.7% over the prior period, to JPY319,985 (USD3,109) million; profit from operations decreased 62.3%, to JPY12,270 (USD119) million; income before income taxes decreased 47.2%, to JPY24,798 (USD241) million; and net income attributable to shareholders of Kyocera Corporation decreased 44.7%, to JPY17,453 (USD170) million.

The negative effect of the yen's appreciation against the U.S. dollar and the euro impacted the company's results significantly during Q1. Moreover, lower Q1 profit is explained in part by the absence of profit from the sale of assets in the amount of approximately JPY12 billion (USD117 million) during the prior Q1.

Consolidated Forecasts for the Year Ending March 31, 2017

Q1 demand for core products was largely in line with initial projections. From the second quarter onward, Kyocera forecasts an increase in component demand due to recovery in production of smartphones. Kyocera also forecasts an increase in sales in the solar energy business in both the public and commercial sectors, and growth in sales in the Equipment Business.

As a result, Kyocera's sales and profit forecasts for the fiscal year ending March 31, 2017 remain unchanged from those announced on April 27, 2016. However, in light of recent circumstances, Kyocera has revised its forecast of exchange rates for the second quarter onward. Full-year forecasts of average exchange rates for fiscal 2017 have therefore been revised from JPY110 to the U.S. dollar and JPY120 to the euro as listed below.

 
Unit: Yen in millions (except percentages, per-share amounts and exchange rates)
 

Fiscal 2016
Results

 

Fiscal 2017
Forecast

 

Increase
(Decrease)
(%) to Fiscal
2016 Results


Net sales: 1,479,627 1,520,000 2.7
Profit from operations: 92,656 110,000 18.7
Income before income taxes: 145,583 130,000 (10.7)

Net income attributable to
shareholders of Kyocera Corporation:

109,047 85,000 (22.1)

Diluted earnings per share attributable
to shareholders of Kyocera
Corporation*:

297.24 231.70 -
Average USD exchange rate: 120 106 -
Average EUR exchange rate: 133   117 -
 

* Forecast of "Diluted earnings per share attributable to shareholders of Kyocera Corporation" is based on the diluted average number of shares outstanding during the three months ended June 30, 2016.

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.

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 integrating them with other technologies, Kyocera has become a leading supplier of printers, copiers, mobile phones, solar power generating systems, electronic components, semiconductor packages, cutting tools and industrial ceramics. Kyocera appears on the 2014 and 2015 listings of the "Top 100 Global Innovators" by Thomson Reuters, and is ranked #531 on Forbes magazine's 2016 "Global 2000" listing of the world's largest publicly traded companies.

KYOCERA Corporation (Japan)
Kenichi Hara, +81-(0)75-604-3416
Corporate Communications
webmaster.pressgl@kyocera.jp
Fax: +81-(0)75-604-3516



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