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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

FORM 6-K

Report of Foreign Private Issuer

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

the Securities Exchange Act of 1934

For the month of July 2017

Commission File Number: 1-07952

KYOCERA CORPORATION

(Translation of registrant’s name into English)

6, Takeda Tobadono-cho, Fushimi-ku,

Kyoto 612-8501, Japan

(Address of principal executive office)

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  ☒        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):  ☐


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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

(Registrant)

/s/ S HOICHI A OKI

Shoichi Aoki

Director,

Managing Executive Officer and

General Manager of

Corporate Financial and Accounting Group

Date: July 28, 2017


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Information furnished on this form:

EXHIBITS

 

Exhibit

    Number    

   

1.

  Consolidated Financial Results of Kyocera Corporation and its Subsidiaries for the Three Months Ended June  30, 2017


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LOGO

Consolidated Financial Results of Kyocera Corporation and its Subsidiaries

for the Three Months Ended June 30, 2017

The consolidated financial information is prepared in accordance with generally accepted accounting principles in the United States of America.

1. Consolidated Financial Results for the Three Months Ended June 30, 2017

 

(1) Consolidated results of operations

          (% of change from previous period)  
       Net sales     Profit from operations     Income before income taxes     Net income attributable
to shareholders of

Kyocera Corporation
 
     Million yen      %     Million yen      %     Million yen      %         Million yen          %  

Three months ended June 30, 2017

     345,162        7.9       31,167        154.0       49,260        98.6       34,981        100.4  

Three months ended June 30, 2016

     319,985        (5.7     12,270        (62.3     24,798        (47.2     17,453        (44.7

(Note) Comprehensive income:

  58,111 million yen for the three months ended June 30, 2017

(15,754) million yen for the three months ended June 30, 2016

 

       Net income
attributable to
shareholders of

Kyocera Corporation
per share - Basic
     Net income
attributable to
shareholders of

Kyocera Corporation
per share - Diluted
 
     Yen      Yen  

Three months ended June 30, 2017

     95.13        95.13  

Three months ended June 30, 2016

     47.58        47.58  

(2) Consolidated financial condition

 

     Total assets      Total equity      Kyocera Corporation
shareholders’ equity
     Kyocera  Corporation
shareholders’ equity
to total assets
 
     Million yen      Million yen      Million yen      %  

June 30, 2017

     3,130,043        2,454,219        2,368,052        75.7  

March 31, 2017

     3,110,470        2,418,909        2,334,219        75.1  

2. Dividends

 

    Dividends per share  
  End of
first quarter
    End of
second quarter
    End of
third quarter
    Year-end     Annual  
    Yen     Yen     Yen     Yen     Yen  

Year ended March 31, 2017

          50             60       110  

Year ending March 31, 2018

                            110  

Note:

Dividends per share for the year ending March 31, 2018 are forecasted to be 110.00 yen on an annual basis.

 

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3. Consolidated Financial Forecasts for the Year Ending March 31, 2018

 

              (% of change from previous year)  
       Net sales      Profit  from
operations
     Income before
income  taxes
     Net income
attributable to
shareholders of

Kyocera Corporation
     Net income
attributable to
shareholders of

Kyocera Corporation
per share
 
     Million yen      %      Million yen      %      Million yen      %      Million yen      %      Yen  

Year ending March 31, 2018

     1,500,000        5.4        120,000        14.8        150,000        8.8        105,000        1.1        285.55  

Note:

Forecast of earnings per share attributable to shareholders of Kyocera Corporation is calculated based on the diluted average number of shares outstanding during the three months ended June 30, 2017.

Notes:

(1) Increase or decrease in significant subsidiaries during the three months ended June 30, 2017: Yes

New companies : Not applicable

Excluded companies : 1 (Kyocera Crystal Device Corporation)

Please refer to the accompanying “(3) Notes to the consolidated financial statements” on page 12.

(2) Adoption of concise quarterly accounting method or procedure: Not applicable

(3) Changes in accounting policies:

(i) Changes due to adoption of new accounting standards: Yes

(ii) Changes due to other than adoption of new accounting standards: Not applicable

Please refer to the accompanying “(3) Notes to the consolidated financial statements” on page 12.

(4) Number of shares (common stock):

(i) Number of shares issued:

 

377,618,580 shares at June 30, 2017

   377,618,580 shares at March 31, 2017

(ii) Number of treasury stock:

 

9,907,615 shares at June 30, 2017

   9,906,197 shares at March 31, 2017

(iii) Average number of shares outstanding:

 

367,711,511 shares for the three months ended June 30, 2017    366,856,906 shares for the three months ended June 30, 2016

Presentation of Situation of Review Procedure

The consolidated financial information included in this Form 6-K is out of scope of audit procedure.

Instruction for Forecasts and Other Notes

Cautionary Statement for Forecasts:

With regard to forecasts set forth above, please refer to the accompanying “Forward-Looking Statements” on page 8.

Other Note:

This is an English translation of the Japanese original of the Consolidated Financial Results of Kyocera Corporation and its Subsidiaries for the Three Months Ended June 30, 2017. The translation is prepared solely for the reference and convenience of foreigners. In the event of any discrepancy between this translation and the Japanese original, the latter shall prevail.

 

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Accompanying Information

1. BUSINESS RESULTS, FINANCIAL CONDITION AND PROSPECTS

(1) Business Results for the Three Months Ended June 30, 2017

Consolidated Financial Results

During the three months ended June 30, 2017 (“the first quarter”), sales in the Industrial & Automotive Components Group, Semiconductor Components Group and Electronic Devices Group expanded due to an increase in demand for components used in automotive-related markets, communications infrastructure and smartphones. Sales in the Documents Solutions Group also increased on the back of investment in new products and aggressive sales promotion activities. As a result, consolidated net sales for the first quarter increased by ¥25,177 million, or 7.9%, to ¥345,162 million, compared with consolidated net sales for the three months ended June 30, 2016 (“the previous first quarter”).

Profits increased significantly due to the increase in sales and cost reductions. Profit from operations increased by ¥18,897 million, or 154.0%, to ¥31,167 million, income before income taxes increased by ¥24,462 million, or 98.6%, to ¥49,260 million, and net income attributable to shareholders of Kyocera Corporation increased by ¥17,528 million, or 100.4%, to ¥34,981 million, compared with the previous first quarter.

Average exchange rates for the first quarter were ¥111 to the U.S. dollar, marking depreciation by ¥3 (2.8%) from the previous first quarter and ¥122 to the Euro, unchanged year on year.

 

     Three months ended June 30,      Increase
(Decrease)
 
     2016      2017     
     Amount      %      Amount      %      Amount      %  
     (Yen in millions, except exchange rates)  

Net sales

   ¥ 319,985        100.0      ¥ 345,162        100.0      ¥ 25,177        7.9  

Profit from operations

     12,270        3.8        31,167        9.0        18,897        154.0  

Income before income taxes

     24,798        7.7        49,260        14.3        24,462        98.6  

Net income attributable to shareholders of Kyocera Corporation

     17,453        5.5        34,981        10.1        17,528        100.4  

Average US$ exchange rate

     108               111                       

Average Euro exchange rate

     122               122                       

 

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Consolidated Results by Reporting Segment

1) Industrial & Automotive Components Group

Sales in this reporting segment increased compared with the previous first quarter due primarily to an increase in sales of automotive products in the display business and to sales expansion in the cutting tool business. Operating profit increased significantly due to sales growth and cost reductions.

2) Semiconductor Components Group

Sales in this reporting segment increased compared with the previous first quarter due primarily to an increase in sales of ceramic packages for optical communications in line with expanding demand for large-capacity, high data speed communications. Operating profit increased significantly due to the increase in sales of ceramic packages and cost reductions.

3) Electronic Devices Group

Sales in this reporting segment increased compared with the previous first quarter due to brisk demand for capacitors and crystal components for smartphones and an increase in sales of printing devices for industrial equipment. Operating profit increased due to the increase in sales.

4) Communications Group

Sales of the information and communications services business, which provides ICT solutions, etc. increased compared with the previous first quarter. On the other hand, sales of the telecommunications equipment business decreased due to a decline in sales volume of low-end mobile phones for overseas market, which was more than enough to offset an increase in sales in Japan. As a result, sales in this reporting segment as a whole decreased compared with the previous first quarter. Operating profit increased, however, due to an increase in sales in Japan in the telecommunications equipment business and to sales expansion in the information and communications services business.

5) Document Solutions Group

Sales in this reporting segment increased compared with the previous first quarter due primarily to an increase in sales volume on the back of launching of new products, aggressive sales promotion activities and the contribution of sales from a consolidated subsidiary, which joined the Kyocera Group in December 2016. Operating profit increased significantly due to the sales growth and cost reductions.

6) Life & Environment Group

Sales in this reporting segment decreased compared with the previous first quarter due to downsizing of the solar energy business in the United States, while operating loss was reduced due to cost reductions.

 

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Net Sales by Reporting Segment

 

     Three months ended June 30,     Increase
(Decrease)
 
     2016     2017    
     Amount     %     Amount     %     Amount     %  
     (Yen in millions)  

Industrial & Automotive Components Group

   ¥ 52,516       16.4     ¥ 61,185       17.7     ¥ 8,669       16.5  

Semiconductor Components Group

     56,005       17.5       60,786       17.6       4,781       8.5  

Electronic Devices Group

     55,453       17.4       63,120       18.3       7,667       13.8  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Components Business

     163,974       51.3       185,091       53.6       21,117       12.9  

Communications Group

     57,835       18.1       57,071       16.5       (764     (1.3

Document Solutions Group

     74,939       23.4       80,973       23.5       6,034       8.1  

Life & Environment Group

     27,308       8.5       24,606       7.1       (2,702     (9.9
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Equipment & Systems Business

     160,082       50.0       162,650       47.1       2,568       1.6  

Others

     5,113       1.6       5,245       1.5       132       2.6  

Adjustments and eliminations

     (9,184     (2.9     (7,824     (2.2     1,360        
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net sales

   ¥ 319,985       100.0     ¥ 345,162       100.0     ¥ 25,177       7.9  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
Operating Profit (Loss) by Reporting Segment             
     Three months ended June 30,     Increase
(Decrease)
 
     2016     2017    
     Amount     %*     Amount     %*     Amount     %  
     (Yen in millions)  

Industrial & Automotive Components Group

   ¥ 1,757       3.3     ¥ 6,386       10.4     ¥ 4,629       263.5  

Semiconductor Components Group

     4,479       8.0       8,005       13.2       3,526       78.7  

Electronic Devices Group

     6,920       12.5       8,599       13.6       1,679       24.3  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Components Business

     13,156       8.0       22,990       12.4       9,834       74.7  

Communications Group

     (4,756           1,158       2.0       5,914        

Document Solutions Group

     5,851       7.8       9,237       11.4       3,386       57.9  

Life & Environment Group

     (1,882           (1,203           679        
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Equipment & Systems Business

     (787           9,192       5.7       9,979        

Others

     (966           466       8.9       1,432        
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating profit

     11,403       3.6       32,648       9.5       21,245       186.3  

Corporate gains and equity in earnings (losses) of affiliates and an unconsolidated subsidiary

     13,671             16,901             3,230       23.6  

Adjustments and eliminations

     (276           (289           (13      
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

   ¥ 24,798       7.7     ¥ 49,260       14.3     ¥ 24,462       98.6  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
* % to net sales of each corresponding segment

Note: Kyocera has changed the classification of its reporting segments from the year ending March 31, 2018. Business results for the three months ended June 30, 2016 have been reclassified in line with the change to reporting segment classifications.

 

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(2) Financial Condition

Consolidated Cash Flows

Cash and cash equivalents at June 30, 2017 decreased by ¥1,554 million to ¥374,641 million from ¥376,195 million at March 31, 2017.

1) Cash flows from operating activities

Net cash provided by operating activities for the first quarter increased by ¥22,176 million to ¥59,635 million from ¥37,459 million for the previous first quarter. This was due mainly to an increase in net income.

2) Cash flows from investing activities

Net cash used in investing activities for the first quarter increased by ¥16,879 million to ¥41,315 million from ¥24,436 million for the previous first quarter. This was due mainly to a decrease in proceeds from maturities of securities, which exceeded decreases in payments for purchases of securities and acquisitions of businesses.

3) Cash flows from financing activities

Net cash used in financing activities for the first quarter decreased by ¥2,336 million to ¥22,375 million from ¥24,711 million for the previous first quarter. This was due mainly to decreases in payments of short-term and long-term debts in spite of an increase in year-end dividends paid.

 

     Three months ended June 30,     Increase
(Decrease)
 
     2016     2017    
     (Yen in millions)  

Cash flows from operating activities

   ¥ 37,459     ¥ 59,635     ¥ 22,176  

Cash flows from investing activities

     (24,436     (41,315     (16,879

Cash flows from financing activities

     (24,711     (22,375     2,336  

Effect of exchange rate changes on cash and cash equivalents

     (17,317     2,501       19,818  

Net decrease in cash and cash equivalents

     (29,005     (1,554     27,451  

Cash and cash equivalents at beginning of period

     374,020       376,195       2,175  

Cash and cash equivalents at end of period

   ¥ 345,015     ¥ 374,641     ¥ 29,626  

 

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(3) Consolidated Financial Forecasts for the Year Ending March 31, 2018

Kyocera has not made any changes to its sales and profit forecasts for the year ending March 31, 2018 announced on May 1, 2017 because the results in the first quarter were in line with initial projections as the whole.

 

     Results for
the year  ended
March 31, 2017
     Forecasts for
the year  ending
March 31, 2018
     Increase
(Decrease)
 
     Amount      %      Amount      %      Amount      %  
     (Yen in millions, except exchange rates)  

Net sales

   ¥ 1,422,754        100.0      ¥ 1,500,000        100.0      ¥ 77,246        5.4  

Profit from operations

     104,542        7.3        120,000        8.0        15,458        14.8  

Income before income taxes

     137,849        9.7        150,000        10.0        12,151        8.8  

Net income attributable to shareholders of Kyocera Corporation

     103,843        7.3        105,000        7.0        1,157        1.1  

Average US$ exchange rate

     108               108                       

Average Euro exchange rate

     119               115                       

 

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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 the following:

 

(1) General conditions in the Japanese or global economy;

 

(2) Unexpected changes in economic, political and legal conditions in countries where we operate;

 

(3) Various export risks which may affect the significant percentage of our revenues derived from overseas sales;

 

(4) The effect of foreign exchange fluctuations on our results of operations;

 

(5) Intense competitive pressures to which our products are subject;

 

(6) Fluctuations in the price and ability of suppliers to provide the required quantity of raw materials for use in Kyocera’s production activities;

 

(7) Manufacturing delays or defects resulting from outsourcing or internal manufacturing processes;

 

(8) Shortages and rising costs of electricity affecting our production and sales activities;

 

(9) The possibility that future initiatives and in-process research and development may not produce the desired results;

 

(10) Companies or assets acquired by us not produce the returns or benefits, or bring in business opportunities;

 

(11) Inability to secure skilled employees, particularly engineering and technical personnel;

 

(12) Insufficient protection of our trade secrets and intellectual property rights including patents;

 

(13) Expenses associated with licenses we require to continue to manufacture and sell products;

 

(14) Environmental liability and compliance obligations by tightening of environmental laws and regulations;

 

(15) Unintentional conflict with laws and regulations or newly enacted laws and regulations;

 

(16) Our market or supply chains being affected by terrorism, plague, wars or similar events;

 

(17) Earthquakes and other natural disasters affecting our headquarters and major facilities as well as our suppliers and customers;

 

(18) Credit risk on trade receivables;

 

(19) Fluctuations in the value of, and impairment losses on, securities and other assets held by us;

 

(20) Impairment losses on long-lived assets, goodwill and intangible assets;

 

(21) Unrealized deferred tax assets and additional liabilities for unrecognized tax benefits; and

 

(22) Changes in accounting principles.

Such risks, uncertainties and other factors may cause our actual results, performance, achievements or financial condition to be materially different from any future results, performance, achievements or financial condition expressed or implied by these forward-looking statements. We undertake no obligation to publicly update any forward-looking statements included in this document.

 

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2. CONSOLIDATED FINANCIAL STATEMENTS

(1) Consolidated Balance Sheets (Unaudited)

 

     March 31, 2017     June 30, 2017     Increase
(Decrease)
 
     Amount     %     Amount     %    
     (Yen in millions)  

ASSETS

  

Current assets:

          

Cash and cash equivalents

   ¥ 376,195       ¥ 374,641       ¥ (1,554

Short-term investments in debt securities

     84,703         84,584         (119

Other short-term investments

     212,668         214,361         1,693  

Trade notes receivables

     28,370         26,195         (2,175

Trade accounts receivables

     291,485         255,940         (35,545

Less allowances for doubtful accounts and sales returns

     (5,593       (5,736       (143

Inventories

     331,155         352,890         21,735  

Other current assets

     119,714         114,442         (5,272
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total current assets

     1,438,697       46.3        1,417,317       45.3        (21,380
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-current assets:

          

Investments and advances:

          

Long-term investments in debt and equity securities

     1,130,756         1,153,296         22,540  

Other long-term investments

     22,246         40,436         18,190  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total investments and advances

     1,153,002       37.0       1,193,732             38.1       40,730  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Property, plant and equipment:

          

Land

     59,963         59,897         (66

Buildings

     351,431         355,159         3,728  

Machinery and equipment

     841,973         845,663         3,690  

Construction in progress

     14,097         13,811         (286

Less accumulated depreciation

     (1,000,860       (1,004,266       (3,406
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total property, plant and equipment

     266,604       8.6       270,264       8.6        3,660  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Goodwill

     110,470       3.5       112,532       3.6       2,062  

Intangible assets

     61,235       2.0       61,511       2.0       276  

Other assets

     80,462       2.6        74,687       2.4       (5,775
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total non-current assets

     1,671,773       53.7       1,712,726       54.7       40,953  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total assets

   ¥  3,110,470             100.0     ¥  3,130,043             100.0     ¥ 19,573  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

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     March 31, 2017      June 30, 2017      Increase
(Decrease)
 
     Amount     %      Amount     %     
     (Yen in millions)  

LIABILITIES AND EQUITY

            

Current liabilities:

            

Short-term borrowings

   ¥ 191        ¥ 117        ¥ (74

Current portion of long-term debt

     8,235          8,531          296  

Trade notes and accounts payable

     129,460          131,134          1,674  

Other notes and accounts payable

     60,881          56,144          (4,737

Accrued payroll and bonus

     62,868          51,125          (11,743

Accrued income taxes

     15,707          8,501          (7,206

Other accrued liabilities

     51,062          48,868          (2,194

Other current liabilities

     36,257          45,525          9,268  
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Total current liabilities

     364,661       11.7        349,945       11.2        (14,716
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Non-current liabilities:

            

Long-term debt

     16,409          17,678          1,269  

Accrued pension and severance liabilities

     31,720          32,345          625  

Deferred income taxes

     258,859          256,364          (2,495

Other non-current liabilities

     19,912          19,492          (420
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Total non-current liabilities

     326,900       10.5        325,879       10.4        (1,021
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Total liabilities

     691,561       22.2        675,824       21.6        (15,737
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Kyocera Corporation shareholders’ equity:

            

Common stock

     115,703          115,703           

Additional paid-in capital

     165,230          165,220          (10

Retained earnings

     1,638,116          1,651,034          12,918  

Accumulated other comprehensive income

     447,479          468,414          20,935  

Common stock in treasury, at cost

     (32,309        (32,319        (10
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Total Kyocera Corporation shareholders’ equity

     2,334,219       75.1        2,368,052       75.7        33,833  
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Noncontrolling interests

     84,690       2.7        86,167       2.7        1,477  
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Total equity

     2,418,909       77.8        2,454,219       78.4        35,310  
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Total liabilities and equity

   ¥    3,110,470              100.0      ¥   3,130,043              100.0      ¥ 19,573  
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 
Note: Accumulated other comprehensive income is as follows:             
     March 31, 2017            June 30, 2017            Increase
(Decrease)
 
     (Yen in millions)  

Net unrealized gains on securities

   ¥ 499,650        ¥  514,643        ¥ 14,993  

Net unrealized losses on derivative financial instruments

     (449        (480        (31

Pension adjustments

     (35,362        (35,937        (575

Foreign currency translation adjustments

     (16,360        (9,812        6,548  
  

 

 

      

 

 

      

 

 

 

Total

   ¥ 447,479        ¥ 468,414        ¥ 20,935  
  

 

 

      

 

 

      

 

 

 

 

10


Table of Contents

(2) Consolidated Statements of Income and Comprehensive Income (Unaudited)

Consolidated Statements of Income

 

    Three months ended June 30,     Increase
(Decrease)
 
    2016     2017    
    Amount     %     Amount     %     Amount     %  
    (Yen in millions and shares in thousands, except per share amounts)  

Net sales

  ¥ 319,985       100.0     ¥ 345,162       100.0     ¥ 25,177       7.9  

Cost of sales

    239,855       75.0       248,334       71.9       8,479       3.5  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

    80,130       25.0       96,828       28.1       16,698       20.8  

Selling, general and administrative expenses

    67,860       21.2       65,661       19.1       (2,199     (3.2
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Profit from operations

    12,270       3.8       31,167       9.0       18,897       154.0  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Other income (expenses):

           

Interest and dividend income

    14,584       4.6       18,403       5.4       3,819       26.2  

Interest expense

    (1,058     (0.3     (323     (0.1     735        

Foreign currency transaction gains (losses), net

    (1,273     (0.4     (590     (0.2     683        

Gains on sales of securities, net

    103       0.0       328       0.1       225       218.4  

Other, net

    172       0.0       275       0.1       103       59.9  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total other income (expenses)

    12,528       3.9       18,093       5.3       5,565       44.4  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

    24,798       7.7       49,260       14.3       24,462       98.6  

Income taxes

    6,324       1.9       12,732       3.7       6,408       101.3  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

    18,474       5.8       36,528       10.6       18,054       97.7  

Net income attributable to noncontrolling interests

    (1,021     (0.3     (1,547     (0.5     (526      
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to shareholders of Kyocera Corporation

  ¥ 17,453       5.5     ¥ 34,981       10.1     ¥ 17,528       100.4  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Per share information:

           

Net income attributable to shareholders of
Kyocera Corporation:

           

Basic

  ¥ 47.58       ¥ 95.13        

Diluted

    47.58         95.13        

Average number of shares of common stock outstanding:

           

Basic

    366,857         367,712        

Diluted

    366,857         367,712        

Note:

Basic earnings per share attributable to shareholders of Kyocera Corporation is calculated based on the average number of shares of common stock outstanding during each period, and diluted earnings per share attributable to shareholders of Kyocera Corporation is calculated based on the diluted average number of shares of stock outstanding during each period.

 

11


Table of Contents

Consolidated Statements of Comprehensive Income

 

    Three months ended June 30,     Increase
(Decrease)
 
    2016     2017    
    Amount     Amount     Amount  
    (Yen in millions)  

Net income

  ¥ 18,474     ¥ 36,528     ¥ 18,054  
 

 

 

   

 

 

   

 

 

 

Other comprehensive income—net of taxes

     

Net unrealized gains on securities

    18,204       15,001       (3,203

Net unrealized losses on derivative financial instruments

    (17     (52     (35

Pension adjustments

    1,421       (587     (2,008

Foreign currency translation adjustments

    (53,836     7,221       61,057  
 

 

 

   

 

 

   

 

 

 

Total other comprehensive income

    (34,228     21,583       55,811  
 

 

 

   

 

 

   

 

 

 

Comprehensive income

    (15,754     58,111       73,865  

Comprehensive income attributable to noncontrolling interests

    5,669       (2,211     (7,880
 

 

 

   

 

 

   

 

 

 

Comprehensive income attributable to shareholders of Kyocera Corporation

  ¥ (10,085   ¥ 55,900     ¥ 65,985  
 

 

 

   

 

 

   

 

 

 

(3) Notes to the consolidated financial statements

Cautionary Statement for Premise of a Going Concern

Not applicable.

Cautionary Statement for Significant Changes in Equity

Not applicable.

Increase or Decrease in Significant Subsidiaries during the three months ended June 30, 2017

For the three months ended June 30, 2017, Kyocera Crystal Device Corporation which was Kyocera Corporation’s significant subsidiary was excluded from consolidation of Kyocera Corporation due to dissolution of Kyocera Crystal Device Corporation resulted from absorption-type merger with Kyocera Corporation as the surviving company on April 1, 2017.

Changes in Accounting Policies

Recently Adopted Accounting Standards

The accounting standards which Kyocera adopted on or after April 1, 2017 did not have material impacts on Kyocera’s consolidated results of operations, financial condition and cash flows.

 

12

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