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Kyocera Announces Consolidated Financial Results for Year Ended March 31, 2008

Net income rises to ¥107 billion (about US$1.07 billion) on consolidated net sales of 1.29 trillion yen (about US$12.9 billion)

KYOTO, Japan—April 25, 2008—Kyocera Corporation (NYSE:KYO) today announced its consolidated financial results for the fiscal year ended March 31, 2008 (fiscal 2008).

 

Financial Results, fiscal years ended March 31

Unit: millions (except percentages, exchange rates and per-share amounts)

 

 

Fiscal 2007

in JP Yen

Fiscal 2008

in JP Yen

Increase %

Fiscal 2008

in US$*

Net Sales

1,283,897

1,290,436

0.5

12,904

Profit from operations

135,102

152,420

12.8

1,524

Income from continuing operations before income taxes

156,540

174,842

11.7

1,748

Net income

106,504

107,244

0.7

1,072

Diluted earnings per share

564.79

565.8

0.2

$5.66

Average exchange rates (US$)

117

114

-

-

Average exchange rates (Euro)

150

162

-

-

*based on the rates of US$1 = ¥ 100, as a convenience to the reader.

Full-Year Results

During fiscal 2008, the Kyocera Group worked aggressively to introduce new products and improve productivity in order to achieve continuous sales expansion and a high profit ratio.  

Consolidated net sales for fiscal 2008 amounted to ¥1,290,436 (US$12,904) million ― a marginal increase of 0.5% compared with the fiscal year ended March 31, 2007 (fiscal 2007), but still marked the highest, as rising sales in the Components Business more than offset a sales decrease in the Equipment Business.

Profit from operations increased by 12.8% to ¥152,420 (US$1,524) million, reflecting a significant increase in profit in the Equipment Business, partially offset by diminished profit in the Components Business. Depreciation increased by ¥5,475 (US$54) million as revised tax codes in Japan triggered a comprehensive review of fixed asset values.

Income from continuing operations before income taxes increased by 11.7% to ¥174,842 (US$1,748) million, due to increases in the categories of A) equity in earnings of affiliates and unconsolidated subsidiaries, and B) interest and dividend income. Net income increased by 0.7% to ¥107,244 (US$1,072) million.

Sales in the Components Business increased by 4.5% as compared with fiscal 2007, to ¥679,990 (US$6,800) million, while operating profit decreased by 4.1%, to ¥100,373 (US$1,004) million. The operating profit ratio was 14.8%.

The Components Business sales increase was led by the Applied Ceramic Products Group, which enjoyed strong demand for solar energy products outside . Despite increased profit in the Applied Ceramic Products Group, however, operating profit for the Components Business decreased overall compared to fiscal 2007, due to diminished profit from the Fine Ceramic Parts Group, Semiconductor Parts Group and Electronic Device Group.

Equipment Business sales decreased by 4.3% in comparison with fiscal 2007, to ¥497,563 (US$4,976) million, as increased sales at the Information Equipment Group were more than offset by a year-on-year decline in sales at the Telecommunications Equipment Group. Operating profit increased by 35.2%, to ¥46,324 (US$463) million, as a result of rising profit from both reporting segments. The operating profit ratio was 9.3%.

Outlook and Future Prospects

The global economic slowdown is expected to intensify in the year ending March 31, 2009 (fiscal 2009), fueling fears of weaker demand for digital consumer equipment, and therefore uncertainty in the outlook for component demand as well.

In this market environment, Kyocera believes that sales in the Components Business will be sluggish in fiscal 2009. However, Kyocera forecasts an increase in consolidated net sales for fiscal 2009 as a result of its acquisition of the mobile phone business of SANYO Electric Co., Ltd. in the Telecommunications Equipment Group, and rising sales at the Applied Ceramic Products Group, particularly in solar energy products.

Operating profit is expected to decline in comparison with fiscal 2008 as a result of infrastructure development costs relating to business integration within the Telecommunications Equipment Group, coupled with price erosion in the Components Business and the impact of the strengthening yen.

To improve business performance, Kyocera will work aggressively to introduce new products, reduce costs, enhance productivity, cultivate new markets and exploit the rich synergies available within its diverse business mix.

Forecast for the Year Ending March 31, 2009

Unit: millions (except percentages, exchange rates and per-share amounts)

 

 

Fiscal 2008

Results

Fiscal 2009

Forecasts

Increase

(Decrease)

%

Amount

% of net sales

Amount

% of net sales

Net Sales

1,290,436

100.0

1,476,000

100.0

14.4

Profit from operations

152,420

11.8

145,000

9.8

(4.9)

Income from continuing operations before income taxes

174,842

13.5

165,000

11.2

(5.6)

Net income

107,244

8.3

102,000

6.9

(4.9)

Diluted earnings per share

565.80

-

538.13

-

(4.9)

Average US$ exchange rate

114

-

100

-

-

Average Euro exchange rate

162

-

152

-

-

Capital expenditures

85,101

6.6

84,000

5.7

(1.3)

Depreciation

75,630

5.9

90,000

6.1

19.0

Complete details of Kyocera’s fiscal year 2008 financial results are available at:

http://global.kyocera.com/ir/financial/f_results.html

FORWARD-LOOKING STATEMENTS

Except for historical information contained herein, the matters set forth in this press release are forward-looking statements that involve risks and uncertainties including, but not limited to, product demand, competition, regulatory approvals, the effect of economic conditions and technological difficulties, and other risks detailed in the Company's filings with the U.S. Securities and Exchange Commission.

About Kyocera

Kyocera Corporation (NYSE:KYO / http://www.kyocera.com), the parent and global headquarters of the Kyocera Group, was founded in 1959 as a producer of advanced ceramics. By combining these engineered materials with metals and plastics, and integrating them with other technologies, Kyocera Corporation has become a leading supplier of telecommunications equipment, copiers, printers, solar energy systems, electronic components, semiconductor packages and industrial ceramics.

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