TOKYO - Kyocera Corporation (TOKYO: 6971) today disclosed its consolidated financial results for the third quarter and the first nine months of the fiscal year ending March 31, 2024. The company, a leading supplier of industrial and automotive components, electronic devices, and other technology-related products, has experienced a downturn in profitability, with significant declines in operating profit, profit before income taxes, and profit attributable to owners of the parent.
For the nine-month period ending December 31, 2023, Kyocera reported a 2.2% decrease in sales revenue compared to the same period last year, amounting to JPY 1,492,672 million (USD 10,512 million). The company attributes this decline primarily to reduced demand in its Core Components and Electronic Components segments, partially offset by increased sales in the Solutions segment.
Operating profit for the nine months fell by 29.9% to JPY 79,844 million (USD 562 million), and profit before income taxes decreased by 22.8% to JPY 125,638 million (USD 885 million). Profit attributable to owners of the parent decreased by 23.9% to JPY 90,366 million (USD 636 million). These reductions reflect lower production equipment utilization rates due to decreased orders, rising labor costs, and higher research and development investments aimed at fostering future growth.
The third quarter alone saw a 1.3% decrease in sales revenue and a 30.9% decrease in operating profit, indicating continued challenges in the market.
In light of these results, Kyocera has revised its consolidated financial forecasts for the fiscal year ending March 31, 2024. The company now expects a 1.3% decrease in sales revenue from the previous fiscal year, with operating profit and profit before income taxes projected to fall by 26.1% and 20.5%, respectively. Profit attributable to owners of the parent is forecasted to decrease by 21.9%.
Kyocera's performance reflects the broader economic slowdown and the impact of geopolitical uncertainties and monetary restraint policies in Europe and the United States. These factors have contributed to weakness in the Semiconductor- and Information & Communications-related markets, which are significant revenue sources for Kyocera.
The information reported is based on a press release statement by Kyocera Corporation.
InvestingPro Insights
As Kyocera Corporation navigates a challenging economic landscape, marked by a downturn in profitability and decreased demand in key segments, a closer look at real-time data and InvestingPro Tips can provide investors with a nuanced understanding of the company's financial health and market position. Kyocera's commitment to dividend growth is highlighted by its track record of raising dividends for 3 consecutive years and maintaining these payments for an impressive 33 years. This consistency suggests a stable financial policy that may reassure investors looking for long-term income.
Additionally, Kyocera's stock is known to exhibit low price volatility, a characteristic that might appeal to investors seeking less risky assets in turbulent times. The company's role as a prominent player in the Electronic Equipment, Instruments & Components industry further cements its relevance in the technology sector. From a financial standpoint, Kyocera's cash flows are robust enough to cover interest payments comfortably, and its liquid assets surpass short-term obligations, indicating a healthy liquidity position.
Turning to the InvestingPro Data, Kyocera's market capitalization stands at $20.699 billion, with a Price/Earnings (P/E) ratio of 28.32, reflecting investor expectations of future earnings potential. The company's Price/Book ratio of 0.95 for the last twelve months as of Q2 2024 suggests that the stock may be undervalued relative to its net asset value. Furthermore, Kyocera has demonstrated a strong return over the last three months, with a 15.55% price total return, signifying a positive short-term investment outlook.
Investors seeking further insights can find additional InvestingPro Tips on Kyocera by visiting https://www.investing.com/pro/6971. With the InvestingPro subscription now on a special New Year sale, offering up to 50% off, it's an opportune time to access comprehensive analysis and data. For an even better deal, use coupon code SFY24 to get an additional 10% off a 2-year InvestingPro+ subscription, or SFY241 to get an additional 10% off a 1-year InvestingPro+ subscription.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.