Annual Reports

 
8-K

 
Other

  • 6-K (Aug 10, 2017)
  • 6-K (Jul 28, 2017)
  • 11-K (Jun 29, 2017)
  • 6-K (Jun 27, 2017)
  • 6-K (Jun 6, 2017)
  • SD (May 30, 2017)
Kyocera 6-K 2005

Documents found in this filing:

  1. 6-K
  2. 6-K
Form 6-K
Table of Contents

FORM 6-K

 

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

 

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16 of

the Securities Exchange Act of 1934

 

For the month of July 2005

 

Commission File Number: 1-07952

 

KYOCERA CORPORATION

 

6 Takeda Tobadono-cho, Fushimi-ku,

Kyoto 612-8501, Japan

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

Form 20-F   X      Form 40-F

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Registration S-T Rule 101(b)(1):     

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Registration S-T Rule 101(b)(7):     

 

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes             No   X  

 

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b); 82-


Table of Contents

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereto duly authorized.

 

KYOCERA CORPORATION

/s/ AKIHIKO TOYOTANI


Akihiko Toyotani

General Manager of

Finance Division

 

Date: July 28, 2005


Table of Contents

Information furnished on this form:

 

EXHIBITS

 

Exhibit

Number


   

Consolidated Financial Results for the Three Months Ended June 30, 2005


Table of Contents

Consolidated Results of Kyocera Corporation and its Subsidiaries

for the Three Months Ended June 30, 2005

 

1. The basic items on preparation for consolidated results for the three months ended June 30, 2005 :

 

(1) The consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America.

 

(2) Change in accounting policies : None

 

(3) Changes in scope of consolidation and application of the equity method :

 

     Consolidation

   Equity method

Increase

   2    0

Decrease

   0    1

 

2. Consolidated financial information for the three months ended June 30, 2005 :

 

(1) Consolidated results of operations :

 

     Three months ended June 30,

   Year ended March 31,

     2005

   2004

   2005

Net sales

   ¥ 265,073 million    ¥ 293,143 million    ¥ 1,180,655 million

% change from the previous period

     (9.6)%      15.8%      3.5%

Profit from operations

     14,283 million      34,751 million      100,968 million

% change from the previous period

     (58.9)%      171.5%      (7.3)%

Income before income taxes

     17,215 million      38,062 million      107,530 million

% change from the previous period

     (54.8)%      131.5%      (6.5)%

Net income

     8,603 million      21,982 million      45,908 million

% change from the previous period

     (60.9)%      104.9%      (32.6)%
    

  

  

Earnings per share :

                    

Basic

   ¥ 45.89    ¥ 117.25    ¥ 244.86

Diluted

     45.88      117.17      244.81
    

  

  

 

(2) Consolidated financial condition :

 

     June 30,

   March 31,

     2005

   2004

   2005

Total assets

   ¥1,741,948 million    ¥1,833,390 million    ¥1,745,519 million

Stockholders’ equity

     1,171,769 million      1,183,080 million      1,174,851 million

Stockholders’ equity to total assets

   67.3%    64.5%    67.3%

Stockholders’ equity per share

   ¥6,250.08    ¥6,309.98    ¥6,266.50

 

- 1 -


Table of Contents

(3) Consolidated cash flows :

 

     Three months ended June 30,

   Year ended March 31,

     2005

   2004

   2005

Cash flows from operating activities

   ¥ 44,507 million    ¥ 26,812 million    ¥ 145,523 million

Cash flows from investing activities

     (51,894) million      (114,211) million      (132,494) million

Cash flows from financing activities

     (11,025) million      (7,576) million      (67,344) million

Cash and cash equivalents at end of period

     293,679 million      267,801 million      310,592 million

 

3. Consolidated financial forecast for the year ending March 31, 2006 :

 

     Year ending March 31, 2006

Net sales    ¥ 1,240,000 million
Income before income taxes    ¥ 135,000 million
Net income    ¥ 81,000 million
Note 1:       
There are no changes in the above forecast for the year ending March 31, 2006 from the original forecast, which was shown in the Form 6-K submitted on April 27, 2005.
Note 2:       
Forecast of earnings per share :      432.00
Net income per share amount is computed based on Statement of Financial Accounting Standards (SFAS) No.128.
Forecast of earnings per share is computed based on the diluted average number of shares outstanding during the three months ended June 30, 2005.

With regard to forecasts set forth above, please refer to the accompanying “Forward Looking Statements” on page 14.

 

- 2 -


Table of Contents

Consolidated Financial Highlights (Unaudited)

Results for the Three Months Ended June 30, 2005

 

     (Yen in millions, except per share
amounts and exchange rates)


 
     Three Months Ended June 30,

   Increase
(Decrease)
(%)


 
     2005

   2004

  

Net sales

   265,073    293,143    (9.6 )

Profit from operations

   14,283    34,751    (58.9 )

Income before income taxes

   17,215    38,062    (54.8 )

Net income

   8,603    21,982    (60.9 )

Average exchange rates :

                

US$

   108    110     

Euro

   136    132     

Earnings per share :

                

Net income

                

Basic

   45.89    117.25     

Diluted

   45.88    117.17     

Capital expenditures

   27,036    11,811    128.9  

Depreciation

   13,149    13,233    (0.6 )

R&D expenses

   14,456    13,875    4.2  

Total assets

   1,741,948    1,833,390     

Stockholders’ equity

   1,171,769    1,183,080     

Sales of products manufactured outside Japan to net sales (%)

   30.5    36.1     

 

- 3 -


Table of Contents

Business Results, Financial Condition and Prospects

 

1. Business Results for the Three Months Ended June 30, 2005

 

(1) Economic Situation and Business Environment

 

The Japanese economy only showed a slight recovery during the three months ended June 30, 2005 (the first quarter) despite increasing personal consumption and expanding capital investment in the private sector. The U.S. and Asian economies continued to grow steadily while the European economy stagnated.

 

In the electronics industry, as a result of moderate rebound of production activities, which had slowed since last summer, demand on components used in this industry has also recovered in the first quarter. Nonetheless, demand on components for digital consumer equipment in the first quarter has not caught up with the buoyant levels of the three months ended June 30, 2004 (the previous first quarter). In addition, prices of components in the first quarter have fallen significantly compared with the previous first quarter.

 

(2) Consolidated Financial Results

 

Due to the above business environment, consolidated net sales and profits in the first quarter decreased compared with the previous first quarter.

 

The yen appreciated 2 yen against the U.S. dollar and depreciated 4 yen against the Euro compared with the average exchange rates in the previous first quarter. The effects of the rising yen against the dollar outweighed the positive impact of the weak yen against the Euro. Accordingly, net sales after translation into yen were pushed down by approximately ¥400 million compared with the previous first quarter. Conversely, the positive effects of the weak yen against the Euro compensated for the strong yen against the dollar, and as a result, income before income taxes after translation into yen had a positive impact of approximately ¥500 million.

 

– 4 –


Table of Contents
(Yen in millions, except per share amounts and exchange rates)  
     Three months ended June 30,

  

Increase
(Decrease)

(%)


 
     2005

   2004

  

Net sales

   265,073    293,143    (9.6 )

Profit from operations

   14,283    34,751    (58.9 )

Income before income taxes

   17,215    38,062    (54.8 )

Net income

   8,603    21,982    (60.9 )

Diluted earnings per share

   45.88    117.17    —    

Average US$ exchange rate

   108    110    —    

Average Euro exchange rate

   136    132    —    

 

(3) Determined management initiatives during the first quarter

 

1) On May 5, 2005 (Japan Time), Kyocera decided to outsource the manufacture of mobile phone handsets of Kyocera Wireless Corp. (KWC), a U.S. subsidiary, and to sell KWC’s manufacturing equipment and inventories to Flextronics International Ltd. (Flextronics), a leading provider of electronics manufacturing services. KWC intends to reduce its manufacturing costs significantly and to improve its profitability rapidly by taking cost-down activities upon its procurements of parts and materials through a strong promotion of the outsourcing to Flextronics, and by making fixed costs related to the manufacturing of mobile phone handsets into variable costs. KWC will also enhance its business operation through specializing in research, development, sales and marketing of mobile phone handsets.

 

2) Since June 1, 2005, Kyocera implemented a new executive officer system to enhance Kyocera Group’s management organization under a global consolidation system, and accordingly, appointed a Chief Executive Officer (CEO), a Chief Financial Officer (CFO) and a Chief Operating Officer (COO). The CEO will take responsibility for mid and long-term Group management policy and strategy formulation and execution, while the CFO will be responsible for constructing and executing a financial strategy for the Group that ensures the effective implementation of these management strategies. The COO will be in charge of daily management issues and business execution to achieve yearly management plans. At the same time, Kyocera also introduced a new corporate business group system, headed by newly appointed executive officers. These business group leaders will be responsible for each product line on a global basis.

 

– 5 –


Table of Contents

(4) Consolidated Results by Reporting Segments

 

[Net sales]

 

(Yen in millions)  
     Three months ended June 30,

   

Increase
(Decrease)

(%)


 
     2005

    2004

   

Fine Ceramic Parts Group

   15,905     18,527     (14.2 )

Semiconductor Parts Group

   29,715     32,840     (9.5 )

Applied Ceramic Products Group

   26,983     21,253     27.0  

Electronic Device Group

   60,811     70,068     (13.2 )
    

 

 

Total components business

   133,414     142,688     (6.5 )

Telecommunications Equipment Group

   45,780     66,313     (31.0 )

Information Equipment Group

   57,908     56,733     2.1  

Optical Equipment Group

   4,373     7,400     (40.9 )
    

 

 

Total equipment business

   108,061     130,446     (17.2 )

Others

   28,168     25,926     8.6  

Adjustments and eliminations

   (4,570 )   (5,917 )   —    
    

 

 

Net sales

   265,073     293,143     (9.6 )

 

 

 

[Operating profit]

 

(Yen in millions)  
     Three months ended June 30,

   

Increase
(Decrease)

(%)


 
     2005

    2004

   

Fine Ceramic Parts Group

   1,890     3,053     (38.1 )

Semiconductor Parts Group

   3,350     4,924     (32.0 )

Applied Ceramic Products Group

   4,891     3,614     35.3  

Electronic Device Group

   4,496     11,528     (61.0 )
    

 

 

Total components business

   14,627     23,119     (36.7 )

Telecommunications Equipment Group

   (6,441 )   (249 )   —    

Information Equipment Group

   7,661     10,207     (24.9 )

Optical Equipment Group

   (1,768 )   (2,055 )   —    
    

 

 

Total equipment business

   (548 )   7,903     —    

Others

   1,348     2,888     (53.3 )
    

 

 

Operating profit

   15,427     33,910     (54.5 )

Corporate

   1,254     4,031     (68.9 )

Equity in earnings of affiliates and unconsolidated subsidiaries

   452     127     255.9  

Adjustments and eliminations

   82     (6 )   —    
    

 

 

Income before income taxes

   17,215     38,062     (54.8 )

 

Notes:

 

Kyocera had previously classified its operations into four reporting segments: “Fine Ceramics Group,” “Electronic Device Group,” “Equipment Group” and “Others.” Kyocera changed its segmentation to make clarify the nature of each operations and to make its management structure more efficiently. Kyocera currently has the following eight reporting segments: “Fine Ceramic Parts Group,” “Semiconductor Parts Group,” “Applied Ceramic Products Group,” “Electronic Device Group,” “Telecommunications Equipment Group,” “Information Equipment Group,” “Optical Equipment Group” and “Others.” Consolidated results for the three months ended June 30, 2004 have been reclassified accordingly. Current “Applied Ceramic Products Group” was previously known as “Consumer-Related Products.” Current “Optical Equipment Group” was previously known as “Optical Instruments.”

 

– 6 –


Table of Contents

With regard to the components business in the first quarter, Applied Ceramic Products Group, which includes solar energy products and cutting tools, posted an increase in sales and profits compared with the previous first quarter. However, sales in Semiconductor Parts Group and Electronic Device Group decreased due to declines in demand on components for digital consumer products such as mobile phone handsets coupled with the negative effect of decline in prices of such components. As a result, overall sales and operating profit of the components business decreased compared with the previous first quarter.

 

In the equipment business, although Information Equipment Group posted higher sales compared with the previous first quarter, Telecommunications Equipment Group and Optical Equipment Group registered declines in sales. Operating profit in the equipment business also declined due to lower performances from Telecommunications Equipment Group and Information Equipment Group.

 

Kyocera’s consolidated results by reporting segment are as follows.

 

1) Fine Ceramic Parts Group

 

Despite the semiconductor fabrication equipment market had shown a strong growth in the previous first quarter, it entered a downturn since last summer, and as a result, demand of ceramic parts for semiconductor fabrication equipment continued to be slow in the first quarter. Sapphire products for LCD projectors were negatively impacted by a decline in unit prices caused by intensifying market competition. Sales and operating profit in this segment decreased compared with the previous first quarter.

 

2) Semiconductor Parts Group

 

A slowdown in the digital consumer products market, notably mobile phone handsets, coupled with declining revenues in the ceramic package business, led to lower sales and operating profit in this segment compared with the previous first quarter. Nonetheless, in the organic package business, demand of packages and substrates for servers and portable music players grew steadily.

 

3) Applied Ceramic Products Group

 

Rising awareness towards the environment has driven increased demand for solar energy products, particularly in Europe, while robust production activities in the automotive industry has spurred increased sales of cutting tools. As a result, both sales and operating profit in this segment increased compared with the previous first quarter.

 

– 7 –


Table of Contents

4) Electronic Device Group

 

Despite growth in sales of thin-film products such as thermal printheads, sales of capacitors and timing devices for digital consumer products as well as connectors slumped. A Decline in sales volume together with decline in prices of components led to lower operating profit in this segment compared with the previous first quarter.

 

5) Telecommunications Equipment Group

 

Sales and operating profit in this segment dipped below levels recorded in the previous first quarter. In the mobile phone business, KWC is now under a promotion of structural reforms and its sales of existing products declined, however, sales in the Japanese market increased reflecting contributions from new products. In the PHS-related business, Kyocera posted increased sales of PHS handsets to WILLCOM, Inc., which has already introduced new services such as fixed voice charges in Japan. Despite this, sales of PHS handsets and base stations for the Chinese market decreased materially.

 

6) Information Equipment Group

 

Sales in this segment increased compared with the previous first quarter as Kyocera enjoyed steady growth in sales of page printers and digital multifunctional products in Europe. Operating profit declined, however, due to the impact of a decline in price of units and increasing development costs for the new products, notably for color models scheduled for release in the second half of the year ended March 31, 2006.

 

7) Optical Equipment Group

 

Sales in this segment decreased while operating loss reduced compared with the previous first quarter owing to the downsizing of the camera business.

 

8) Others

 

Kyocera Communication Systems Co., Ltd. (KCCS) posted solid growth from its telecommunications engineering business, and sales of a subsidiary, which was newly consolidated Kyocera Group during the previous fiscal year, were included from the start of this fiscal year. Consequently, sales in this segment increased. Operating profit in this segment decreased compared with the previous first quarter due to a decline in sales at Kyocera Chemical Corporation.

 

– 8 –


Table of Contents

(5) Consolidated Orders and Production by Reporting Segment

 

[Orders]

 

(Yen in millions)  
     Three months ended June 30,

   

Increase
(Decrease)

(%)


 
     2005

    2004

   

Fine Ceramic Parts Group

   16,601     20,302     (18.2 )

Semiconductor Parts Group

   33,436     34,301     (2.5 )

Applied Ceramic Products Group

   28,537     21,784     31.0  

Electronic Device Group

   64,418     74,607     (13.7 )
    

 

 

Total components business

   142,992     150,994     (5.3 )

Telecommunications Equipment Group

   50,276     76,222     (34.0 )

Information Equipment Group

   57,767     57,000     1.3  

Optical Equipment Group

   4,014     8,392     (52.2 )
    

 

 

Total equipment business

   112,057     141,614     (20.9 )

Others

   30,239     27,192     11.2  

Adjustments and eliminations

   (4,828 )   (6,122 )   —    
    

 

 

Total orders

   280,460     313,678     (10.6 )

 

 

 

[Production]

 

(Yen in millions)  
     Three months ended June 30,

  

Increase
(Decrease)

(%)


 
     2005

     2004

  

Fine Ceramic Parts Group

   15,817      19,571    (19.2 )

Semiconductor Parts Group

   30,869      34,256    (9.9 )

Applied Ceramic Products Group

   27,117      20,897    29.8  

Electronic Device Group

   61,011      73,840    (17.4 )
    
    
  

Total components business

   134,814      148,564    (9.3 )

Telecommunications Equipment Group

   45,927      67,828    (32.3 )

Information Equipment Group

   60,272      59,390    1.5  

Optical Equipment Group

   3,986      8,514    (53.2 )
    
    
  

Total equipment business

   110,185      135,732    (18.8 )

Others

   19,089      17,787    7.3  
    
    
  

Total production

   264,088      302,083    (12.6 )

 

– 9 –


Table of Contents

(6) Geographic Segments (Sales by region)

 

 

               (Yen in millions)  
     Three months ended June 30,

   Increase (Decrease)
(%)


 
     2005

   2004

  

Japan

   107,064    101,602    5.4  

United States of America

   54,910    67,266    (18.4 )

Asia

   43,755    59,011    (25.9 )

Europe

   42,796    41,244    3.8  

Others

   16,548    24,020    (31.1 )
    
  
  

Total net sales

   265,073    293,143    (9.6 )

 

1) Japan

 

Sales of the components business decreased due to declining demand for digital consumer equipment together with decline in the components price. New mobile phone handsets and PHS handsets, however, contributed to increased sales steadily as well as an increase in sales at KCCS. As a result, net sales in Japan increased compared with the previous first quarter.

 

2) United States of America

 

Net sales decreased compared with the previous first quarter due to decreased sales of mobile phone handsets, while sales of information equipment grew.

 

3) Asia (excluding Japan)

 

Net sales decreased compared with the previous first quarter due to decreased sales of components for digital consumer equipment as well as decreased sales of PHS handsets and base stations.

 

4) Europe

 

Although sales of camera products decreased due to structural reform, sales growth for solar energy products outweighed significantly. As a result, net sales increased compared with the previous first quarter.

 

5) Others

 

Net sales decreased compared with the previous first quarter due mainly to decreased sales of mobile phone handsets in Canada and South and Central America.

 

– 10 –


Table of Contents

2. Cash Flows

 

Cash and cash equivalents at June 30, 2005 decreased by ¥16,913 million to ¥293,679 million compared with those at March 31, 2005.

 

 

       (Yen in millions)  
       Three months ended June 30,

 
       2005

     2004

 

Cash flows from operating activities

     44,507      26,812  

Cash flows from investing activities

     (51,894 )    (114,211 )

Cash flows from financing activities

     (11,025 )    (7,576 )

Effect of exchange rate changes on cash and cash equivalents

     1,499      1,644  

Net decrease in cash and cash equivalents

     (16,913 )    (93,331 )

Cash and cash equivalents at beginning of period

     310,592      361,132  

Cash and cash equivalents at end of period

     293,679      267,801  

 

1) Cash Flows from Operating Activities

 

Net cash provided by operating activities in the first quarter increased by ¥17,695 million to ¥44,507 million from the previous first quarter of ¥26,812 million. Although net income decreased and a payment of income taxes increased, collections of receivables and reductions of inventories contributed to an increase in net cash.

 

2) Cash Flows from Investing Activities

 

Net cash used by investing activities in the first quarter decreased by ¥62,317 million to ¥51,894 million from the previous first quarter of ¥114,211 million. This was due mainly to decreases in purchases of the government bonds and negotiable certificate of deposits.

 

3) Cash Flows from Financing Activities

 

Net cash used in financing activities in the first quarter increased by ¥3,449 million to ¥11,025 million from the previous first quarter of ¥7,576 million. This reflected an increase in cash dividend due to a change in period-end divided per share for the year ended March 31, 2005 from ¥30 to ¥50.

 

– 11 –


Table of Contents

3. Consolidated Business Forecast for the Year Ending March 31, 2006

 

(1) Consolidated Financial Forecast for the Year Ending March 31, 2006

 

Although Kyocera changed its forecast of average exchange rates for the year ending March 31, 2006 (fiscal 2006), it has not changed its forecast of sales and profits for fiscal 2006 because an impact of change in the forecast of average exchange rates is not considered to be material.

 

Kyocera’s consolidated forecasts for fiscal 2006 are as follows.

 

(Yen in millions, except per share amounts and exchange rates)     
     Forecast for fiscal 2006
announced on


  

Result for

fiscal 2005


   Increase (Decrease)
to the result for
fiscal 2005 (%)


     July 28, 2005

   April 27, 2005

     

Net sales

   1,240,000    1,240,000    1,180,655    5.0

Profit from operations

   124,000    124,000    100,968    22.8

Income before income taxes

   135,000    135,000    107,530    25.5

Net income

   81,000    81,000    45,908    76.4

Diluted earnings per share

   432.00    431.94    244.81    —  

Average US$ exchange rate

   106    102    108    —  

Average Euro exchange rate

   129    134    135    —  

 

Note: The forecast of earnings per share announced on July 28, 2005 is computed based on the diluted average number of shares outstanding during the three months ended June 30, 2005.

 

– 12 –


Table of Contents

There are no changes in the forecast by each reporting segment for the fiscal 2006 from the original forecast as of April 27, 2005. Forecast by each reporting segment are as follows.

 

[Net sales]

 

                 (Yen in millions )
     Year ending
March 31, 2006
(Forecast)


    Year ended
March 31, 2005
(Result)


    Increase (Decrease)
(%)


 

Fine Ceramic Parts Group

   75,000     73,711     1.7  

Semiconductor Parts Group

   139,000     127,960     8.6  

Applied Ceramic Products Group

   124,000     93,879     32.1  

Electronic Device Group

   258,000     262,997     (1.9 )
    

 

 

Total components business

   596,000     558,547     6.7  

Telecommunications Equipment Group

   268,000     250,918     6.8  

Information Equipment Group

   243,000     241,145     0.8  

Optical Equipment Group

   24,000     35,776     (32.9 )
    

 

 

Total equipment business

   535,000     527,839     1.4  

Others

   131,000     118,040     11.0  

Adjustments and eliminations

   (22,000 )   (23,771 )   —    
    

 

 

Net sales

   1,240,000     1,180,655     5.0  

 

[Operating profit]

 

                 (Yen in millions )
     Year ending
March 31, 2006
(Forecast)


    Year ended
March 31, 2005
(Result)


    Increase (Decrease)
(%)


 

Fine Ceramic Parts Group

   10,500     11,535     (9.0 )

Semiconductor Parts Group

   18,000     17,550     2.6  

Applied Ceramic Products Group

   21,500     17,129     25.5  

Electronic Device Group

   31,000     35,406     (12.4 )
    

 

 

Total components business

   81,000     81,620     (0.8 )

Telecommunications Equipment Group

   7,000     (14,918 )   —    

Information Equipment Group

   30,000     36,186     (17.1 )

Optical Equipment Group

   (2,000 )   (15,387 )   —    
    

 

 

Total equipment business

   35,000     5,881     495.1  

Others

   14,000     13,019     7.5  
    

 

 

Operating profit

   130,000     100,520     29.3  

Corporate

   5,000     7,010     (28.7 )
    

 

 

Income before income taxes

   135,000     107,530     25.5  

 

-13-


Table of Contents

(2) Management Challenges for the Second Quarter Onward

 

In the electronics equipment market, production activities for digital consumer products such as mobile phone handsets, computer equipment and digital home appliances are expected to expand from the second quarter and increase markedly in the second half of fiscal 2006. It is anticipated that this will drive a full-scale recovery in component demand in the second half.

 

Amid such a market outlook, Kyocera will continue to promote its group-wide strategy of “high-value-added diversification” as a means to boosting profitability.

 

In the components business, Kyocera will make significant investments to create a new ultra-streamlined production system in Japan and expand production capacity, as well as launch new businesses. Specifically, Kyocera will further expand the solar energy business to cater for growing worldwide demand through a quadripartite production framework in Japan, China, Mexico and the Czech Republic. Other efforts will be focused on boosting sales of ceramic packages and organic packages for mobile phone handsets, digital cameras and flat-screen TVs. Kyocera will also make the most of its new factory in Ayabe City, Kyoto, with the mass-production of organic packages for next-generation MPUs that will be installed in digital consumer products.

 

In the equipment business, Kyocera will look to exploit the positive effects of structural reforms, and in particular, work to swiftly raise profitability in the mobile phone handsets business. Kyocera will also strive to further expand Telecommunications Equipment Group by expanding sales of PHS-related products in Japan and by cultivating new markets overseas.

 

Note: Forward-Looking Statements

 

Certain of the statements made in this document are forward-looking statements (within the meaning of Section 21E of the U.S. Securities and Exchange Act of 1934), which are based on our current assumptions and beliefs in light of the information currently available to us. These forward-looking statements involve known and unknown risks, uncertainties and other factors. Such risks, uncertainties and other factors include, but are not limited to: general economic conditions in our markets, which are primarily Japan, North America, Europe, and Asia, including in particular China; changes in exchange rates, particularly between the yen and the U.S. dollar and euro, respectively, in which we make significant sales; our ability to launch innovative products and otherwise meet the advancing technical requirements of our customers, particularly in the highly competitive markets for ceramics, semiconductor parts and electronic components; and the extent and pace of future growth or contraction in information technology-related markets around the world, including those for communications and personal computers; events that may impact negatively on our markets or supply chain, including terrorist acts and outbreaks of diseases; and the occurrence of natural disasters, such as earthquakes, in locations where our manufacturing and other key business facilities are located. Such risks, uncertainties and other factors may cause our actual results, performance, achievements or financial position to be materially different from any future results, performance, achievements or financial position expressed or implied by these forward-looking statements. We undertake no obligation to publicly update any forward-looking statements included in this document.

 

-14-


Table of Contents

CONSOLIDATED BALANCE SHEETS

 

     Yen in millions

    

(Unaudited)

June 30, 2005


  

March 31, 2005


  

(Unaudited)

June 30, 2004


          
     Amount

    %

   Amount

    %

   Amount

    %

Current assets :

                                      

Cash and cash equivalents

   ¥ 293,679          ¥ 310,592          ¥ 267,801      

Short-term investments

     68,384            34,938            70,470      

Trade notes receivable

     27,518            29,552            39,558      

Trade accounts receivable

     185,648            201,374            192,215      

Short-term finance receivables

     32,336            40,801            71,494      

Less allowances for doubtful accounts and sales returns

     (8,190 )          (7,981 )          (9,113 )    

Inventories

     207,495            213,411            219,836      

Deferred income taxes

     40,153            38,659            36,243      

Other current assets

     29,263            34,229            35,014      
    


 
  


 
  


 

Total current assets

     876,286     50.3      895,575     51.3      923,518     50.4
    


 
  


 
  


 

Non-current assets :

                                      

Investments in and advances to affiliates and unconsolidated subsidiaries

     30,712            30,623            23,880      

Securities and other investments

     422,299            430,437            484,585      
    


 
  


 
  


 

Total investments and advances

     453,011     26.0      461,060     26.4      508,465     27.7

Long-term finance receivables

     76,251     4.4      66,427     3.8      82,762     4.5

Property, plant and equipment, at cost :

                                      

Land

     56,160            55,210            54,905      

Buildings

     234,496            225,964            220,535      

Machinery and equipment

     663,117            656,780            631,380      

Construction in progress

     18,185            14,384            6,802      

Less accumulated depreciation

     (700,948 )          (693,341 )          (661,480 )    
    


 
  


 
  


 
       271,010     15.6      258,997     14.9      252,142     13.8

Goodwill

     28,612     1.6      28,110     1.6      25,531     1.4

Intangible assets

     16,349     0.9      15,847     0.9      18,403     1.0

Other assets

     20,429     1.2      19,503     1.1      22,569     1.2
    


 
  


 
  


 

Total non-current assets

     865,662     49.7      849,944     48.7      909,872     49.6
    


 
  


 
  


 

  Total assets

   ¥ 1,741,948     100.0    ¥ 1,745,519     100.0    ¥ 1,833,390     100.0
    


 
  


 
  


 

 

- 15 -


Table of Contents
     Yen in millions

    

(Unaudited)

June 30, 2005


   March 31, 2005

  

(Unaudited)

June 30, 2004


          
     Amount

    %

   Amount

    %

   Amount

    %

Current liabilities :

                                      

Short-term borrowings

   ¥ 63,813          ¥ 66,556          ¥ 105,488      

Current portion of long-term debt

     46,266            44,051            22,770      

Trade notes and accounts payable

     87,933            86,872            106,510      

Other notes and accounts payable

     46,081            34,690            34,092      

Accrued payroll and bonus

     43,592            34,821            42,707      

Accrued income taxes

     11,840            31,180            19,938      

Other accrued expenses

     28,312            28,849            27,072      

Other current liabilities

     19,981            17,338            15,806      
    


 
  


 
  


 

Total current liabilities

     347,818     20.0      344,357     19.7      374,383     20.4
    


 
  


 
  


 

Non-current liabilities :

                                      

Long-term debt

     33,099            33,557            69,813      

Accrued pension and severance costs

     27,955            31,166            36,194      

Deferred income taxes

     93,391            96,345            109,049      

Other non-current liabilities

     6,810            4,761            6,174      
    


 
  


 
  


 

Total non-current liabilities

     161,255     9.2      165,829     9.5      221,230     12.1
    


 
  


 
  


 

Total liabilities

     509,073     29.2      510,186     29.2      595,613     32.5
    


 
  


 
  


 

Minority interests in subsidiaries

     61,106     3.5      60,482     3.5      54,697     3.0

Stockholders’ equity :

                                      

Common stock

     115,703            115,703            115,703      

Additional paid-in capital

     162,059            162,061            162,088      

Retained earnings

     915,857            916,628            898,327      

Accumulated other comprehensive income

     9,533            11,839            38,247      

Treasury stock, at cost

     (31,383 )          (31,380 )          (31,285 )    
    


 
  


 
  


 

Total stockholders’ equity

     1,171,769     67.3      1,174,851     67.3      1,183,080     64.5
    


 
  


 
  


 

Total liabilities, minority interests and stockholders’ equity

   ¥ 1,741,948     100.0    ¥ 1,745,519     100.0    ¥ 1,833,390     100.0
    


 
  


 
  


 

 

Note1 : Accumulated other comprehensive income is as follows:

                        
     Yen in millions

 
     June 30, 2005

    March 31, 2005

    June 30, 2004

 

    Net unrealized gains on securities

   ¥ 37,022     ¥ 42,461     ¥ 71,738  

    Net unrealized (losses) gains on derivative financial instruments

   ¥ (37 )   ¥ (27 )   ¥ 15  

    Minimum pension liability adjustments

   ¥ (1,629 )   ¥ (1,629 )   ¥ (1,477 )

    Foreign currency translation adjustments

   ¥ (25,823 )   ¥ (28,966 )   ¥ (32,029 )

 

Note2 :    As a result of an increase in an affiliated company accounted for by the equity method in the year ended March 31, 2005, Deferred income taxes (Non-current liabilities) and Retained earnings at June 30, 2004 have been restated as if the equity method had been applied at inception in accordance with Accounting Principles Board Opinion No.18, “The Equity Method of Accounting for Investments in Common Stock.”

 

- 16 -


Table of Contents

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

 

     Yen in millions, except per share amounts and shares in thousands

 
     Three months ended June 30,

   

Increase

(Decrease)


 
     2005

    2004

   
     Amount

    %

    Amount

    %

    Amount

    %

 

Net sales

   ¥ 265,073     100.0     ¥ 293,143     100.0     ¥ (28,070 )   (9.6 )

Cost of sales

     191,687     72.3       205,508     70.1       (13,821 )   (6.7 )
    


 

 


 

 


 

Gross profit

     73,386     27.7       87,635     29.9       (14,249 )   (16.3 )

Selling, general and administrative expenses

     59,103     22.3       52,884     18.0       6,219     11.8  
    


 

 


 

 


 

Profit from operations

     14,283     5.4       34,751     11.9       (20,468 )   (58.9 )

Other income (expenses):

                                          

Interest and dividend income

     3,167     1.2       2,056     0.7       1,111     54.0  

Interest expense

     (257 )   (0.1 )     (326 )   (0.1 )     69      

Foreign currency transaction (losses) gains, net

     (492 )   (0.2 )     399     0.1       (891 )    

Equity in earnings of affiliates and unconsolidated subsidiaries

     452     0.2       127     0.0       325     255.9  

Other, net

     62     0.0       1,055     0.4       (993 )   (94.1 )
    


 

 


 

 


 

Total other income (expenses)

     2,932     1.1       3,311     1.1       (379 )   (11.4 )
    


 

 


 

 


 

Income before income taxes and minority interests

     17,215     6.5       38,062     13.0       (20,847 )   (54.8 )

Income taxes

     8,035     3.0       15,107     5.2       (7,072 )   (46.8 )
    


 

 


 

 


 

Income before minority interests

     9,180     3.5       22,955     7.8       (13,775 )   (60.0 )

Minority interests

     (577 )   (0.3 )     (973 )   (0.3 )     396      
    


 

 


 

 


 

Net income

   ¥ 8,603     3.2     ¥ 21,982     7.5     ¥ (13,379 )   (60.9 )
    


 

 


 

 


 

Earnings per share:

                                          

Net income:

                                          

Basic

   ¥ 45.89           ¥ 117.25                      

Diluted

   ¥ 45.88           ¥ 117.17                      

Weighted average number of shares of common stock outstanding:

                                          

Basic

     187,480             187,491                      

Diluted

     187,499             187,612                      

 

Notes:

 

1. Kyocera applies the Statement of Financial Accounting Standards Board (SFAS) No.130, “Financial Reporting of Comprehensive Income.” Based on this standard, comprehensive income for the three months ended June 30, 2005 and 2004 was an increase of ¥6,297 million and an increase of ¥38,183 million, respectively.
2. Earnings per share amounts were computed based on SFAS No.128, “Earnings per Share.” Under SFAS No.128, basic earnings per share was computed based on the average number of shares of common stock outstanding during each period and diluted earnings per share assumed the dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock.

 

- 17 -


Table of Contents

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

 

(Yen in millions and shares in thousands)  

(Number of shares of common stock)


   Common stock

  

Additional

paid-in capital


    Retained
earnings


    Accumulated other
comprehensive
income


    Treasury stock,
at cost


    Comprehensive
income


 

Balance at March 31, 2004 (187,484) as previously reported

   ¥ 115,703    ¥ 162,091     ¥ 885,262     ¥ 22,046     ¥(31,356)          

Restatement adjustment prior to March 31, 2004

                    (3,293 )                      

Balance at March 31, 2004 (187,484) as restated

     115,703      162,091       881,969       22,046     (31,356 )        
    

  


 


 


 

 


Net income for the year

                    45,908                   ¥ 45,908  

Other comprehensive income

                            (10,207 )           (10,207 )
                                         


Total comprehensive income for the year

                                        ¥ 35,701  
                                         


Cash dividends

                    (11,249 )                      

Purchase of treasury stock (21)

                                  (170 )        

Reissuance of treasury stock (18)

            (5 )                   146          

Stock option plan of a subsidiary

            (25 )                              
    

  


 


 


 

       

Balance at March 31, 2005 (187,481)

     115,703      162,061       916,628       11,839     (31,380 )        
    

  


 


 


 

       

(Unaudited)

                                             

Net income for the period

                    8,603                   ¥ 8,603  

Other comprehensive income

                            (2,306 )           (2,306 )
                                         


Total comprehensive income for the period

                                        ¥ 6,297  
                                         


Cash dividends

                    (9,374 )                      

Purchase of treasury stock (4)

                                  (30 )        

Reissuance of treasury stock (4)

            (2 )                   27          
    

  


 


 


 

       

Balance at June 30, 2005 (187,481)

   ¥ 115,703    ¥ 162,059     ¥ 915,857     ¥ 9,533     ¥(31,383)          
    

  


 


 


 

       
( Yen in millions and shares in thousands)  

(Number of shares of common stock)


   Common stock

  

Additional

paid-in capital


    Retained
earnings


    Accumulated other
comprehensive
income


    Treasury stock,
at cost


    Comprehensive
income


 

Balance at March 31, 2004 (187,484) as previously reported

   ¥ 115,703    ¥ 162,091     ¥ 885,262     ¥ 22,046     ¥(31,356)          

Restatement adjustment prior to March 31, 2004

                    (3,293 )                      

Balance at March 31, 2004 (187,484) as restated

     115,703      162,091       881,969       22,046     (31,356 )        
    

  


 


 


 

       

(Unaudited)

                                             

Net income for the period

                    21,982                   ¥ 21,982  

Other comprehensive income

                            16,201             16,201  
                                         


Total comprehensive income for the period

                                        ¥ 38,183  
                                         


Cash dividends

                    (5,624 )                      

Purchase of treasury stock (4)

                                  (34 )        

Reissuance of treasury stock (13)

            (3 )                   105          
    

  


 


 


 

       

Balance at June 30, 2004 (187,493) as restated

   ¥ 115,703    ¥ 162,088     ¥ 898,327     ¥ 38,247     ¥(31,285)          
    

  


 


 


 

       

 

Note: As a result of an increase in an affiliated company accounted for by the equity method in the year ended March 31, 2005, the financial data on Balance at March 31, 2004 and at June 30, 2004 have been restated as if the equity method had been applied at inception in accordance with Accounting Principles Board Opinion No.18, “The Equity Method of Accounting for Investments in Common Stock.”

 

- 18 -


Table of Contents

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

 

     Yen in millions

 
     Three months ended June 30,

 
     2005

    2004

 

Cash flows from operating activities:

                

Net income

   ¥ 8,603     ¥ 21,982  

Adjustments to reconcile net income to net cash provided by operating activities :

                

Depreciation and amortization

     14,773       15,244  

Write-down of inventories

     2,313       2,637  

Foreign currency adjustments

     733       (260 )

Decrease in receivables

     21,114       16,064  

Decrease (increase) in inventories

     3,731       (24,753 )

Increase (decrease) in notes and accounts payable

     3,012       (7,220 )

(Decrease) increase in accrued income taxes

     (20,085 )     890  

Increase in other current liabilities

     10,273       4,872  

Other, net

     40       (2,644 )
    


 


Net cash provided by operating activities

     44,507       26,812  
    


 


Cash flows from investing activities :

                

Payments for purchases of securities

     (14,788 )     (51,255 )

Payments for purchases of investments and advances

     (76 )     (173 )

Sales and maturities of securities

     2,278       10,610  

Payments for purchases of property, plant and equipment, and intangible assets

     (19,049 )     (15,559 )

Proceeds from sales of property, plant and equipment, and intangible assets

     1,809       1,102  

Deposit of negotiable certificate of deposits and time deposits

     (39,221 )     (59,500 )

Withdrawal of negotiable certificate of deposits and time deposits

     17,480       500  

Other, net

     (327 )     64  
    


 


Net cash used in investing activities

     (51,894 )     (114,211 )
    


 


Cash flows from financing activities :

                

(Decrease) increase in short-term debt

     (2,759 )     20,617  

Proceeds from issuance of long-term debt

     2,522       3,418  

Payments of long-term debt

     (843 )     (26,049 )

Dividends paid

     (9,452 )     (5,736 )

Net purchases of treasury stock

     (4 )     67  

Other, net

     (489 )     107  
    


 


Net cash used in financing activities

     (11,025 )     (7,576 )
    


 


Effect of exchange rate changes on cash and cash equivalents

     1,499       1,644  
    


 


Net decrease in cash and cash equivalents

     (16,913 )     (93,331 )

Cash and cash equivalents at beginning of period

     310,592       361,132  
    


 


Cash and cash equivalents at end of period

   ¥ 293,679     ¥ 267,801  
    


 


 

- 19 -


Table of Contents

SEGMENT INFORMATION (Unaudited)

 

1. Operating segments :

 

     Yen in millions

 
     Years ended June 30,

    Increase (Decrease)

 
     2005

    2004

   
     Amount

    Amount

    Amount

    %

 

Net sales :

                              

Fine Ceramic Parts Group

   ¥ 15,905     ¥ 18,527     ¥ (2,622 )   (14.2 )

Semiconductor Parts Group

     29,715       32,840       (3,125 )   (9.5 )

Applied Ceramic Products Group

     26,983       21,253       5,730     27.0  

Electronic Device Group

     60,811       70,068       (9,257 )   (13.2 )

Telecommunications Equipment Group

     45,780       66,313       (20,533 )   (31.0 )

Information Equipment Group

     57,908       56,733       1,175     2.1  

Optical Equipment Group

     4,373       7,400       (3,027 )   (40.9 )

Others

     28,168       25,926       2,242     8.6  

Adjustments and eliminations

     (4,570 )     (5,917 )     1,347      
    


 


 


 

     ¥ 265,073     ¥ 293,143     ¥ (28,070 )   (9.6 )
    


 


 


 

Operating profit :

                              

Fine Ceramic Parts Group

   ¥ 1,890     ¥ 3,053     ¥ (1,163 )   (38.1 )

Semiconductor Parts Group

     3,350       4,924       (1,574 )   (32.0 )

Applied Ceramic Products Group

     4,891       3,614       1,277     35.3  

Electronic Device Group

     4,496       11,528       (7,032 )   (61.0 )

Telecommunications Equipment Group

     (6,441 )     (249 )     (6,192 )    

Information Equipment Group

     7,661       10,207       (2,546 )   (24.9 )

Optical Equipment Group

     (1,768 )     (2,055 )     287      

Others

     1,348       2,888       (1,540 )   (53.3 )
    


 


 


 

       15,427       33,910       (18,483 )   (54.5 )

Corporate

     1,254       4,031       (2,777 )   (68.9 )

Equity in earnings of affiliates and unconsolidated subsidiaries

     452       127       325     255.9  

Adjustments and eliminations

     82       (6 )     88      
    


 


 


 

Income before income taxes

   ¥ 17,215     ¥ 38,062     ¥ (20,847 )   (54.8 )
    


 


 


 

Depreciation and amortization :

                              

Fine Ceramic Parts Group

   ¥ 920     ¥ 982     ¥ (62 )   (6.3 )

Semiconductor Parts Group

     1,856       1,897       (41 )   (2.2 )

Applied Ceramic Products Group

     1,284       1,003       281     28.0  

Electronic Device Group

     4,997       5,030       (33 )   (0.7 )

Telecommunications Equipment Group

     1,297       1,848       (551 )   (29.8 )

Information Equipment Group

     2,322       2,013       309     15.4  

Optical Equipment Group

     464       549       (85 )   (15.5 )

Others

     915       1,312       (397 )   (30.3 )

Corporate

     718       610       108     17.7  
    


 


 


 

Total

   ¥ 14,773     ¥ 15,244     ¥ (471 )   (3.1 )
    


 


 


 

Capital expenditures :

                              

Fine Ceramic Parts Group

   ¥ 1,490     ¥ 642     ¥ 848     132.1  

Semiconductor Parts Group

     9,297       1,776       7,521     423.5  

Applied Ceramic Products Group

     5,557       790       4,767     603.4  

Electronic Device Group

     4,145       4,422       (277 )   (6.3 )

Telecommunications Equipment Group

     517       714       (197 )   (27.6 )

Information Equipment Group

     3,444       1,512       1,932     127.8  

Optical Equipment Group

     73       1,164       (1,091 )   (93.7 )

Others

     2,016       374       1,642     439.0  

Corporate

     497       417       80     19.2  
    


 


 


 

Total

   ¥ 27,036     ¥ 11,811     ¥ 15,225     128.9  
    


 


 


 

 

- 20 -


Table of Contents

2. Geographic segments (Sales and operating profit by geographic area) :

 

     Yen in millions

 
     Years ended June 30,

   

Increase

(Decrease)


 
     2005

    2004

   
     Amount

    Amount

    Amount

    %

 

Net sales:

                              

Japan

   ¥ 114,347     ¥ 120,890     ¥ (6,543 )   (5.4 )

Intra-group sales and transfer between geographic areas

     77,668       82,052       (4,384 )   (5.3 )
    


 


 


 

       192,015       202,942       (10,927 )   (5.4 )
    


 


 


 

United States of America

     62,413       86,418       (24,005 )   (27.8 )

Intra-group sales and transfer between geographic areas

     4,584       6,340       (1,756 )   (27.7 )
    


 


 


 

       66,997       92,758       (25,761 )   (27.8 )
    


 


 


 

Asia

     38,419       39,057       (638 )   (1.6 )

Intra-group sales and transfer between geographic areas

     28,242       30,603       (2,361 )   (7.7 )
    


 


 


 

       66,661       69,660       (2,999 )   (4.3 )
    


 


 


 

Europe

     44,055       42,232       1,823     4.3  

Intra-group sales and transfer between geographic areas

     8,189       8,818       (629 )   (7.1 )
    


 


 


 

       52,244       51,050       1,194     2.3  
    


 


 


 

Others

     5,839       4,546       1,293     28.4  

Intra-group sales and transfer between geographic areas

     1,778       2,239       (461 )   (20.6 )
    


 


 


 

       7,617       6,785       832     12.3  
    


 


 


 

Adjustments and eliminations

     (120,461 )     (130,052 )     9,591      
    


 


 


 

     ¥ 265,073     ¥ 293,143     ¥ (28,070 )   (9.6 )
    


 


 


 

Operating profit:

                              

Japan

   ¥ 15,311     ¥ 27,078     ¥ (11,767 )   (43.5 )

United States of America

     (1,984 )     5,643       (7,627 )    

Asia

     3,249       4,787       (1,538 )   (32.1 )

Europe

     (92 )     139       (231 )    

Others

     (8 )     452       (460 )    
    


 


 


 

       16,476       38,099       (21,623 )   (56.8 )

Adjustments and eliminations

     (967 )     (4,195 )     3,228      
    


 


 


 

       15,509       33,904       (18,395 )   (54.3 )

Corporate

     1,254       4,031       (2,777 )   (68.9 )

Equity in earnings of affiliates and unconsolidated subsidiaries

     452       127       325     255.9  
    


 


 


 

Income before income taxes

   ¥ 17,215     ¥ 38,062     ¥ (20,847 )   (54.8 )
    


 


 


 

 

- 21 -


Table of Contents

3. Geographic segments (Sales by region) :

 

     Yen in millions

 
     Years ended June 30,

  

Increase

(Decrease)


 
     2005

   2004

  
     Amount

    %

   Amount

    %

   Amount

    %

 

Japan

   ¥ 107,064     40.4    ¥ 101,602     34.7    ¥ 5,462     5.4  

United States of America

     54,910     20.7      67,266     22.9      (12,356 )   (18.4 )

Asia

     43,755     16.5      59,011     20.1      (15,256 )   (25.9 )

Europe

     42,796     16.2      41,244     14.1      1,552     3.8  

Others

     16,548     6.2      24,020     8.2      (7,472 )   (31.1 )
    


 
  


 
  


 

Net sales

   ¥ 265,073     100.0    ¥ 293,143     100.0    ¥ (28,070 )   (9.6 )
    


 
  


 
  


 

Sales outside Japan

   ¥ 158,009          ¥ 191,541          ¥ (33,532 )   (17.5 )

Sales outside Japan ratio to net sales

     59.6 %          65.3 %                   

 

- 22 -

Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki