FX.co ★ Kyocera H1 Profit Down; Cuts FY Outlook

Kyocera Corporation (KYO), a prominent Japanese firm specializing in ceramics and electronics, has announced a significant decline in its profits for the six months ending September 30, 2024. The profit attributable to owners of the parent fell by 36.1%, or 20.41 billion yen, landing at 36.08 billion yen compared to the previous year. This downturn is largely attributed to reduced utilization of production facilities driven by sluggish demand for components, coupled with rising labor and other associated costs. Consequently, net income per share dropped to 25.61 yen from last year's 39.90 yen.

The operating profit experienced a substantial year-over-year decrease, falling 29.9% to 37.88 billion yen.

Contrastingly, sales revenue for the first half of the fiscal year saw a slight uptick, rising by 1.3% to reach 998.59 billion yen. This increase was influenced by stronger sales in the Electronic Components Business and the Solutions Business, partly due to the effects of a weaker yen, while revenue from the Core Components Business remained stable.

Looking forward to the fiscal year ending March 31, 2025, Kyocera projects its profit attributable to owners of the parent to be 71.00 billion yen, with basic earnings per share of 50.40 yen and an anticipated sales revenue of 2.02 trillion yen.

This projection marks a revision from April 2024, when the company forecasted an annual profit attributable to owners of the parent at 112.0 billion yen, with basic earnings per share of 79.31 yen and expected sales revenue of 2.05 trillion yen.