Kyocera profits tumble despite stable revenue
February 3, 2025
The company struggles with weak demand and one-time costs, printer sales rise.
Kyocera has reported a sharp decline in profits for the first nine months of its financial year, despite steady sales revenue of ¥1.49 trillion (€9.4 billion/ $10.2 billion). The Japanese technology group saw operating profit plunge 84.6% to ¥12.3 billion (€77.5 million/ $84 million), weighed down by weak demand, rising costs, and one-time impairments.
The manufacturer cited a slump in general-purpose data centre components, particularly Flip-Chip Ball Grid Arrays (FCBGAs), as a key drag on performance. The downturn in its Core Components Business offset gains in document solutions and electronic components, which benefited from a weaker yen.
Kyocera has lowered its full-year earnings forecast, citing sluggish recovery in its Solutions Business, which includes printers and office equipment. However, the Document Solutions Unit recorded an 8% sales increase, contributing to an 11.8% rise in segment profit.
A major ¥48 billion (€302 million/ $328 million) impairment charge hit the company’s bottom line, largely due to declining profitability in its Organic Packages and Boards Business and a tax asset reversal at Kyocera AVX Components Corporation. Management has outlined a series of structural reforms, including workforce reductions, capital spending cuts, and a shift towards high-margin products.
Despite these challenges, Kyocera maintained investment in research and development, particularly in telecommunications and semiconductor-related components. The company also confirmed plans to accelerate its divestment of KDDI shares, seeking to improve its capital structure and shareholder returns.
Looking ahead, Kyocera expects its restructuring efforts to restore profitability by FY26, driven by efficiency gains and a focus on high-value components.
Categories : City News
Tags : Business Financials Kyocera OEM
