Kyocera sales up and profits down

May 15, 2023

In their latest accounts for fiscal 2023, Kyocera reports revenues were up and profits were down and a share buyback is planned.

Kyocera reports that increased sales in the Document Solutions Unit and the Industrial Tools Unit, as well as the weaker yen during fiscal year 2023, enable the company to hit their ¥2 trillion (€13.51billion / $14.68 billion) revenue target, a 10.1% increase compared to fiscal year 2022.

In the same period, the operating profit decreased by 13.7% to ¥128,517 million (€868 million / $943 million), profit before income taxes decreased by 11.4% to ¥176,192 million (€1.9 billion / $1.2 billion), and profit attributable to owners of the parent decreased by 13.8% to ¥127,988 million (€864 million / $939 million).

The company attributes the profits decline to the global economic growth slowed down due to various factors such as interest rate hikes, uncertainty in the global situation, higher costs for raw materials, energy, and logistics, as well as a significant decrease in sales revenue in the Communications Unit and inflation.

Kyocera also incurred three one-time costs totalling approximately ¥19 billion (€128 million / $139 million), which included a litigation cost, additional pension obligations, and costs related to structural reforms.

The company plans a share buyback of up to ¥50 billion (€337.6 million / $367 million), as part of its shareholder return initiatives and is to facilitate flexible capital strategies in the future.

When it comes to sustainability the company says it is “striving to realize a decarbonized society and is making efforts to expand the use of renewable energy. In addition to the installation of solar power generation systems at our own sites, Kyocera is working to establish and promote necessary infrastructure, such as a new subscription type business model that utilizes solar power generation systems, fuel cells and storage batteries, in order to reduce greenhouse gas emissions in our communities and society overall.”

Our take on this: No mention of reducing carbon emissions form their own manufacturing.