Sales down, profits up at Kyocera
January 30, 2020
Sales down, but reorganisation increases profits in the nine months ended 31 December 2019.
Kyocera reported its financial results for the nine months ended 31 December 2019, with sales revenue down 1.4% at ¥1,196 billion ($1.098 billion)/ €996.99 million). Despite the impact of lower sales, profit increased compared with the previous nine months. Kyocera explained that this was mainly due to structural reform costs in the previous fiscal year. Operating profit increased by ¥34.284 million ($314,950/ €285,798), or 56.6%, to ¥94.860 million ($871,432/ €790,877).
Despite contribution from M&A, component demand was down due mainly to a slowdown in the Chinese economy, Kyocera stated.
Within the Document Solutions Group, sales revenue for the nine months decreased by 2.3%, to ¥267,524 million ($2.46 million/ €2.23 million) compared with ¥273,835 million ($2.51 million/ €2.28 million) in the previous nine months due to the effect of appreciation of the yen, explained Kyocera. Business profit decreased by 8.6%. Despite this decrease, a double-digit business profit ratio was maintained on the back of improved productivity and cost reductions.
Kyocera revised its forecast due mainly to the prolonged global economic slowdown and sluggish demand in automotive-related markets and is now predicting overall sales for the year to be ¥1,625 billion ($14.93 billion/ €13.54 billion).
Categories : City News
Tags : Business Financials Kyocera OEM
