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Press release from Business Wire

KYOCERA Announces Consolidated Financial Results for Six Months Ended September 30, 2012

Wednesday, October 31, 2012

KYOCERA Announces Consolidated Financial Results for Six Months Ended September 30, 201203:20 EDT Wednesday, October 31, 2012 KYOTO, Japan (Business Wire) -- Kyocera Corporation (NYSE:KYO)(TOKYO:6971) today announced consolidated financial results for the first half of fiscal year 2013 ("first half" or "FY13-H1," covering the six months ended September 30, 2012), as summarized below. Details are available at: http://global.kyocera.com/ir/financial/f_results.html   Consolidated Financial Highlights: First Half Unit: Millions (except percentages and per-share amounts)     Six Months Ended September 30 2011 (FY12-H1) in JPY   2012 (FY13-H1) in JPY   Increase (Decrease)   2012 (FY13-H1) in USD   2012 (FY13-H1) in EUR Amount in JPY   % Net sales: 604,268 608,431 4,163 0.7 7,800 6,084 Profit from operations: 67,763 25,891 (41,872) (61.8) 332 259 Income before income taxes: 75,565 35,732 (39,833) (52.7) 458 357 Net income attributable to shareholders of Kyocera Corporation: 46,768 25,371 (21,397) (45.8) 325 254 Diluted earnings per share attributable to shareholders of Kyocera Corporation:   254.93   138.31   -   -   1.77   1.38 Note: As a convenience to the reader, U.S. dollar (USD) and euro (EUR) conversions are provided at the rates of USD1 = JPY78 and EUR1 = JPY100, rounded to the nearest unit.   Summary In comparison with the prior first half ("FY12-H1"), this first half was characterized by the impact of the yen's appreciation; sluggish growth in demand for components used in industrial equipment and digital consumer electronics; a decrease in sales of solar energy products outside of Japan; and an overall decrease in sales of telecommunications equipment. Nonetheless, newly added revenue from LCD manufacturer Optrex Corporation (now Kyocera Display Corporation) led to increased consolidated net sales as compared to FY12-H1*1. Profit decreased compared with the previous first half, primarily due to a JPY21,300(USD266) million charge*2 recorded at AVX Corporation, a U.S.-based subsidiary, for environmental remediation in New Bedford Harbor, Massachusetts (U.S.A.), and to the general impact of the yen's appreciation. As a result, compared to FY12-H1, consolidated net sales increased 0.7%, to JPY608,431 (USD7,800) million; profit from operations decreased 61.8%, to JPY25,891 (USD332) million; income before income taxes decreased 52.7%, to JPY35,732 (USD458) million; and net income attributable to shareholders of Kyocera Corporation decreased 45.8%, to JPY25,371 (USD325) million.   Consolidated Financial Highlights: Second Quarter Comparisons Unit: Millions (except percentages) Against FY12-Q2   Three Months Ended September 30 2011 (FY12-Q2) in JPY   2012 (FY13-Q2) in JPY   Increase (Decrease)   2012 (FY13-Q2) in USD   2012 (FY13-Q2) in EUR Amount in JPY   % Net sales: 299,037 310,705 11,668 3.9 3,983 3,107 Profit from operations: 34,450 27,893 (6,557) (19.0) 358 279 Income before income taxes: 35,643 31,005 (4,638) (13.0) 398 310 Net income attributable to shareholders of Kyocera Corporation:   21,964   18,801   (3,163)   (14.4)   241   188   Against FY13-Q1   Three Months Ended June 30, 2012 (FY13-Q1) in JPY   September 30, 2012 (FY13-Q2) in JPY   Increase (Decrease)   2012 (FY13-Q2) in USD   2012 (FY13-Q2) in EUR Amount in JPY   % Net sales: 297,726 310,705 12,979 4.4 3,983 3,107 Profit from operations: -2,002 27,893 29,895 - 358 279 Income before income taxes: 4,727 31,005 26,278 555.9 398 310 Net income attributable to shareholders of Kyocera Corporation: 6,570 18,801 12,231 186.2 241 188 Note: As a convenience to the reader, U.S. dollar (USD) and euro (EUR) conversions are provided at the rates of USD1 = JPY78 and EUR1 = JPY100, rounded to the nearest unit.   "In the second quarter, we saw increased demand for components used in digital consumer electronics, in particular for smartphones, as well as expanded sales in our solar energy business in the Japanese market," stated Kyocera Corporation president, Tetsuo Kuba. "This led to increased sales and profit compared to the first quarter, and with a pretax profit ratio of 10%, we have bounced back to double-digit margins." Consolidated Financial Forecasts: Year Ending March 31, 2013 From the third quarter (October 1 to December 31, 2012) onward, Kyocera expects an expansion in the Japanese domestic solar energy market; however, Kyocera also anticipates heightened uncertainty in the Chinese market and prolonged stagnation in the European economy. Based on these expectations, Kyocera has revised its consolidated financial and average exchange rate forecasts for the second half from projections announced in August 2012, as shown below. "Under difficult business circumstances we have had to lower our forecasts for the fiscal year, but we still expect to achieve 10.8% growth in sales compared to the previous fiscal year, which will represent our highest annual sales to date," explained President Kuba. Kyocera will strive to improve performance by increasing sales, taking advantage of business opportunities in the growing solar energy market in Japan and by aggressively introducing new products such as smartphones.     Unit: Yen in millions (except percentages and exchange rates)     Fiscal 2013 Forecasts Announced on   Increase (Decrease) (%) to Fiscal 2012 Results Fiscal 2012 Results   August 1, 2012   October 31, 2012 Net sales: 1,190,870   1,370,000   1,320,000 10.8 Profit from operations: 97,675 118,700 100,000 2.4 Income before income taxes: 114,893 129,900 115,000 0.1 Net income attributable to shareholders of Kyocera Corporation: 79,357 86,400 75,000 (5.5) Average USD exchange rate: 79 79 79 - Average EUR exchange rate: 109     97   101   -   *1 Optrex Corporation became a consolidated subsidiary of Kyocera Corporation in February 2012.*2 The charge was converted into yen using the P&L rate of USD1 = JPY80, the average exchange rate in FY13-Q1, rounded to the nearest unit, according to the actual amount recorded in Kyocera's FY13-Q1 consolidated results. 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 plastics, and integrating them with other technologies, Kyocera has become a leading supplier of solar power generating systems, telecommunications equipment, printers, copiers, electronic components, semiconductor packages, cutting tools and industrial ceramics. During the year ended March 31, 2012, the company's net sales totaled 1.19 trillion yen (approx. USD14.5 billion). The company is ranked #426 on Forbes magazine's 2012 "Global 2000" listing of the world's largest publicly traded companies. KYOCERA Corporation (Japan)Judah Reynolds, +81-(0)75-604-3416Corporate Communicationswebmaster.pressgl@kyocera.jpFax: +81-(0)75-604-3516