KYOCERA reports rise in sales revenue
February 1, 2019
The OEM has announced its consolidated financial results for the nine months ending 31 December 2018, reporting an increase in sales revenue but a fall in profits.
As KYOCERA explained, its sales revenue for the nine months ending 31 December 2018 increased by ¥69.4 billion ($637.3 million/€555.5 million), or 6.1 percent, to ¥1.2 trillion ($11.02 billion/€9.6 billion), compared with the previous nine months, marking record highs in sales for this nine-month period for two consecutive years.
Sales increased in the Electronic Devices Group and the Industrial & Automotive Components Group as well as the Document Solutions Group due in part to contributions from aggressive merger and acquisition activities conducted from fiscal 2018.
Profits, however, decreased as compared with the previous nine months, due to the recording of settlement expenses in the amount of ¥52.3 billion ($480.3 million/€418.6 million) relating to long-term purchase agreements for procurement of polysilicon material in the solar energy business and to the recording of impairment loss relating to machinery, equipment and goodwill in the organic materials business in the amount of ¥16.1 billion ($147.8 million/€128.8 million), which more than offset the effects of increased sales revenue and cost reductions efforts in each division.
For this reason, operating profit decreased by ¥47.7 billion ($438.05 million/€381.8 million), or 44.1 percent, to ¥60.5 billion ($555.6 million/€484.3 million).
KYOCERA’s Document Solutions Group experienced an increase in sales revenue in the nine months of ¥6.9 billion ($63.3 million/€55.2 million), or 2.6 percent, to ¥273.8 billion ($2.5 billion/€2.1 billion), compared with ¥266.9 billion ($2.4 billion/€2.1 billion) in the previous nine months. This was due primarily to an increase in sales volume of multifunctional products in Japan and overseas as well as contributions from merger and acquisition activities. Business profit in the nine months increased by ¥993 million ($9.1 million/€7.9 million), or 3.4 percent, to ¥30.08 billion ($276.2 million/€240.7 million) compared with ¥29.08 billion ($267.08 million/€232.7 million) in the previous nine months, due to the sales growth and cost reductions. The business profit ratio for the nine months was 11 percent, which was almost level with the 10.9 percent recorded for the previous nine months.
Categories : City News
Tags : 2018 Financials Kyocera
