KYOCERA Announces Consolidated Financial Results for Third Quarter, Ended Dec. 31, 2022

Rhea-AI Summary

Kyocera Corporation (TOKYO:6971) announced its financial results for the third quarter of FY2023, highlighting a 12.6% rise in sales revenue to JPY 1,526,497 million (USD 11,477 million), marking a record high. However, operating profit fell by 3.9% to JPY 113,884 million (USD 856 million) due to increased costs in raw materials and logistics. The company faced a slowdown in smartphone market demand and incurred extraordinary costs of approximately JPY 10 billion. For the fiscal year ending March 31, 2023, revised forecasts indicate slower growth and increased costs, projecting sales revenue of JPY 2,000,000 million.

Positive

• None.

Negative

• Operating profit decreased by 3.9% to JPY 113,884 million.
• Profit before income taxes fell by 0.2% to JPY 162,756 million.
• Profit attributable to owners decreased by 0.9% to JPY 118,783 million.
• Extraordinary costs totaled approximately JPY 10 billion.
• Decreased demand for smartphone components led to a significant revenue drop in the Communications Unit.

KYOTO, Japan--(BUSINESS WIRE)-- Kyocera Corporation (TOKYO: 6971) today announced its consolidated financial results for the third quarter of the fiscal year ending March 31, 2023. 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, 2022. Complete details are available at: https://global.kyocera.com/ir/library/f_results.html

Consolidated Financial Highlights: Nine Months Ended December 31, 2022

Unit: Millions (except percentages and per-share amounts)
	Nine Months Ended December 31,
	2021 (FY22) in JPY	2022 (FY23) in JPY	Change		2022 (FY23) in USD	2022 (FY23) in EUR
			Amount in JPY	%
Sales revenue:	1,355,665	1,526,497	170,832	12.6	11,477	10,826
Operating profit:	118,458	113,884	(4,574)	(3.9)	856	808
Profit before income taxes:	163,103	162,756	(347)	(0.2)	1,224	1,154
Profit attributable to owners of the parent:	119,833	118,783	(1,050)	(0.9)	893	842
Earnings per share attributable to owners of the parent (basic):	331.34	330.96	－	－	2.49	2.35
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 = JPY133 and EUR1 = JPY141, rounded to the nearest unit (as of December 30, 2022)

Period Summary

This nine-month period was characterized by slowing economic growth rates amid an uncertain global situation, continuing inflation, rising global interest rates and a sharp depreciation in the Japanese yen. Concerning the company’s major revenue sources, the period brought continued robust demand in semiconductor-related markets; however, smartphone-related markets exhibited a slowing trend.

Due to the impact of the company’s investments in expanding component production for semiconductor-related markets, as well as the impact of the weaker yen, the period sales revenue increased by 12.6% over the prior-year period, to JPY1,526,497 (USD11,477) million, marking a record high.

Nevertheless, despite the weaker yen and increased sales revenue for the company as a whole, profit decreased as compared with the prior-year period as operating costs rose, particularly in raw materials and logistics. The Communications Unit experienced a sharp decrease in sales revenue during the period, and the company recorded slowing demand for components used in smartphones during the three months ended Dec. 31, 2022. The period also included two extraordinary costs totaling approximately 10 billion yen: approx. JPY7 billion in litigation costs during the three months ended Sept. 30, 2022, and approx. JPY3 billion in pension liabilities during the three months ended Dec. 31, 2022. Consequently, as compared with the prior-year period, operating profit decreased 3.9%, to JPY113,884 (USD856) million; profit before income taxes decreased 0.2%, to JPY162,756 (USD1,224) million; and profit attributable to owners of the parent decreased 0.9%, to JPY118,783 (USD893) million.

Consolidated Financial Highlights: Third Quarter

Unit: Millions (except percentages)
	Three Months Ended December 31,
	2021 (FY22-Q3) in JPY	2022 (FY23-Q3) in JPY	Change		2022 (FY23-Q3) in USD	2022 (FY23-Q3) in EUR
			Amount in JPY	%
Sales revenue:	479,328	514,325	34,997	7.3	3,867	3,648
Operating profit:	42,779	37,396	(5,383)	(12.6)	281	265
Profit before income taxes:	63,752	58,445	(5,307)	(8.3)	439	415
Profit attributable to owners of the parent:	46,614	43,197	(3,417)	(7.3)	325	306
(See note above regarding exchange rates)

Guidance for the Fiscal Year Ending March 31, 2023

During this nine-month period, the company’s sales revenue increased most strongly in semiconductor-related markets. The three months ending Mar. 31, 2023 are forecast to bring slower economic growth, rising global inflation, lower volumes of smartphone sales and production, and higher costs, especially in raw materials and logistics. Under these circumstances, the company has revised its consolidated financial forecasts for the fiscal year ending March 31, 2023 as outlined in the table below.

Consolidated Forecast: Year Ending March 31, 2023

Unit: Yen in millions (except percentages, per-share amounts and exchange rates)
		Fiscal 2022 Results		Fiscal 2023 Forecast Announced on April 28, 2022		Fiscal 2023 Forecast Announced on February 1, 2023		Change (%) from Fiscal 2022 Results
Sales revenue:		1,838,938		2,000,000		2,000,000		8.8
Operating profit:		148,910		174,000		120,000		(19.4)
Profit before income taxes:		198,947		220,000		170,000		(14.6)
Profit attributable to owners of the parent:		148,414		154,000		124,000		(16.4)
Earnings per share attributable to owners of the parent (basic):		411.15		426.63		345.49	*1	-
Average USD exchange rate:		112		134	*2	134		-
Average EUR exchange rate:		131		137	*2	137		-
*1: Based on the average number of shares outstanding during the nine months ended December 31, 2022
*2: On October 31, 2022, forecast revised from the previous forecast made in April 2022. The previous forecasts were 115 yen for average US$ exchange rate, 125 yen for average Euro exchange rate.

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, 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230131006211/en/

KYOCERA Corporation (Japan)

Corporate Communications

Masaru Usami

Tel: +81-(0)75-604-3416

Fax:+81-(0)75-604-3516

E-Mail: webmaster.pressgl@kyocera.jp

Website: https://global.kyocera.com/

Source: KYOCERA Corporation

FAQ

What are Kyocera's Q3 financial results for FY2023?

Kyocera reported a sales revenue of JPY 514,325 million for Q3 FY2023, a rise of 7.3% year-over-year.

What challenges did Kyocera face in its recent financial results?

Kyocera experienced increased operating costs, decreased demand in the smartphone market, and extraordinary costs totaling JPY 10 billion.

What is Kyocera's forecast for the fiscal year ending March 31, 2023?

Kyocera revised its sales revenue forecast to JPY 2,000,000 million amidst slower economic growth and rising costs.

What was Kyocera's operating profit for the nine months ending December 31, 2022?

The operating profit for the nine months ended December 31, 2022, was JPY 113,884 million.