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Kyocera’s printer segment thrives amid rising costs

August 1, 2024

Strong sales in Kyocera’s printer unit boost revenue, but rising costs dent profits.

Kyocera Corporation reported a mixed performance in the first quarter of fiscal 2025, with a significant uptick in sales revenue but a decline in profits due to rising costs. The Japanese multinational’s sales revenue increased by 4.1% year-on-year to ¥498.9 billion (€2.96 billion/ $3.58 billion), driven primarily by a weaker yen, which bolstered overseas earnings.

However, the company’s profit before income taxes fell 1.6% to ¥36.8 billion (€218.4 million/ $264.3 million), reflecting higher fixed costs, including labour, depreciation, and research and development expenses.

Kyocera’s Document Solutions Unit reported that sales revenue surged by 11.1% to ¥115 billion (€682.6 million/ $825.0 million), while its business profit jumped 25.7% to ¥11.3 billion (€67.0 million/ $81.1 million). This growth indicates ongoing demand for Kyocera’s printing solutions and the unit’s critical role in the company’s portfolio.

Other segments also showed varied results. The Core Components Business saw a modest 3.3% increase in sales to ¥138.4 billion (€821.1 million/ $993.7 million), but profits in this segment dropped by 10.1% to ¥12.4 billion (€73.6 million/ $89.0 million), primarily due to higher fixed costs. The Electronic Components Business faced a significant profit decline of 74%, down to ¥1.1 billion (€6.5 million/ $7.9 million), despite a 6.1% increase in sales to ¥89.7 billion (€532.2 million/ $643.9 million).

Looking ahead, Kyocera has forecasted a 2.3% rise in total sales revenue for fiscal 2025, reaching ¥2.05 trillion (€12.16 billion/ $14.74 billion). The company expects operating profit to increase by 10.2% to ¥150 billion (€890.6 million/ $1.08 billion) and profit before income taxes to grow by 10.8% to ¥112 billion (€664.8 million/ $803.9 million). The Document Solutions Unit is projected to continue its strong performance, with anticipated revenue growth of 3.9% to ¥470 billion (€2.79 billion/ $3.38 billion).

Categories : City News

Tags : Business Financials Kyocera OEM Q1FY2025

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