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 2003
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-
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/ HIDEKI ISHIDA |
Hideki Ishida Managing Executive Officer General Manager of Corporate Business Systems Administration Division |
Date: July 29, 2003
Information furnished on this form:
Exhibit Number |
||
1. | Consolidated Financial Results for the Three Months Ended June 30, 2003 |
July 29, 2003
Kyocera Corporation
Consolidated Financial Highlights (Unaudited)
Results for the Three Months Ended June 30, 2003
Three Months Ended June 30, |
Increase (Decrease) (%) |
||||||
2003 |
2002 |
||||||
(Yen in millions, except per share amounts and exchange rates) |
|||||||
Net sales |
253,126 | 253,930 | (0.3 | ) | |||
Profit from operations |
12,798 | 22,242 | (42.5 | ) | |||
Income before income taxes |
16,442 | 16,375 | 0.4 | ||||
Net income |
10,730 | 7,391 | 45.2 | ||||
Average exchange rates : |
|||||||
US$ |
118 | 127 | | ||||
Euro |
135 | 117 | | ||||
Earnings per share : |
|||||||
Net income |
|||||||
Basic |
58.01 | 39.10 | | ||||
Diluted |
58.01 | 39.07 | | ||||
Capital expenditures |
14,147 | 9,474 | 49.3 | ||||
Depreciation |
14,021 | 15,564 | (9.9 | ) | |||
R&D expenses |
12,243 | 11,376 | 7.6 | ||||
Total assets |
1,700,020 | 1,618,148 | | ||||
Stockholders equity |
1,053,922 | 1,028,996 | | ||||
Sales of products manufactured outside Japan to net sales (%) |
36.0 | 37.5 | |
1
Consolidated Results of Kyocera Corporation and its Subsidiaries
for the Three Months Ended June 30, 2003
1. | The basic items on preparation for consolidated results for the three months ended June 30, 2003 : |
(1) | The consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America. |
(2) | Change in accounting principle : None |
(3) | Changes in scope of consolidation and application of the equity method : |
Consolidation |
Equity method | |||
Increase |
5 | 0 | ||
Decrease |
0 | 1 |
2. | Consolidated financial information for the three months ended June 30, 2003 : |
(1) | Consolidated results of operations : |
Three months ended June 30, |
Year ended March 31, |
||||||||||
2003 |
2002 |
2003 |
|||||||||
Net sales |
¥ | 253,126 million | ¥ | 253,930 million | ¥ | 1,069,770 million | |||||
% change from the previous period |
(0.3 | )% | | 3.4 | % | ||||||
Profit from operations |
12,798 million | 22,242 million | 83,388 million | ||||||||
% change from the previous period |
(42.5 | )% | | 61.7 | % | ||||||
Income before income taxes |
16,442 million | 16,375 million | 76,037 million | ||||||||
% change from the previous period |
0.4 | % | | 37.3 | % | ||||||
Net income |
10,730 million | 7,391 million | 41,165 million | ||||||||
% change from the previous period |
45.2 | % | | 28.8 | % | ||||||
Earnings per share : |
|||||||||||
Basic |
¥ | 58.01 | ¥ | 39.10 | ¥ | 220.91 | |||||
Diluted |
58.01 | 39.07 | 220.86 |
(2) | Consolidated financial condition : |
As of June 30, |
As of March 31, |
|||||||||||
2003 |
2002 |
2003 |
||||||||||
Total assets |
¥ | 1,700,020 million | ¥ | 1,618,148 million | ¥ | 1,635,014 million | ||||||
Stockholders equity |
1,053,922 million | 1,028,996 million | 1,003,500 million | |||||||||
Stockholders equity to total assets |
62.0 | % | 63.6 | % | 61.4 | % | ||||||
Stockholders equity per share |
¥ | 5,698.04 | ¥ | 5,443.15 | ¥ | 5,425.37 |
2
Consolidated cash flows :
Three months ended June 30, |
Year ended March 31, | ||||||||
2003 |
2002 |
2003 | |||||||
Cash flows from operating activities |
¥ | 6,919 million | ¥ | 50,181 million | ¥ | 160,754 million | |||
Cash flows from investing activities |
2,841 million | (25,769) million | (58,512) million | ||||||
Cash flows from financing activities |
(9,391) million | (14,269) million | (74,662) million | ||||||
Cash and cash equivalents at end of period |
299,632 million | 280,777 million | 298,310 million |
3. | Consolidated financial forecasts for the year ending March 31, 2004 and the six months ending September 30, 2003: |
There are no changes in the forecast, which were announced in April 25, 2003. (Please refer to the accompanying "Forward Looking Statements" on page 7 with regard to the forecasts.)
3
Financial Results and Condition for the Three Months Ended June 30, 2003,
and Prospects for the Year Ending March 31, 2004
1. | Overview of the Three Months Ended June 30, 2003 |
1) | Economic Situation and Business Environment |
Although the stock market rose and there were signs of a recovery in personal consumption in the United States during the first quarter, the U.S. economy did not recover, due in part to a continued slump in the production capacity utilization ratio for the manufacturing industry. Further, the European economy weakened overall, and the Asian economy was negatively impacted by Severe Acute Respiratory Syndrome (SARS), which dulled consumption in the Chinese market. Together with the continued downturn in personal consumption and capital investment, these blows to the world economy combined to weaken the Japanese economy.
In the electronics industry, shipments of personal computers during the quarter increased year-on-year. However, due to lower-than-expected production of mobile handsets in China because of the impact of SARS, and to a downward trend in mobile handsets production in Europe and Korea, the global demand for mobile handset components fell short of forecasts.
2) | Consolidated Financial Results |
Three Months Ended June 30, |
Increase (%) |
||||||
2003 |
2002 |
||||||
(Yen in millions) | |||||||
Net sales |
253,126 | 253,930 | (0.3 | ) | |||
Profit from operations |
12,798 | 22,242 | (42.5 | ) | |||
Income before income taxes |
16,442 | 16,375 | 0.4 | ||||
Net income |
10,730 | 7,391 | 45.2 | ||||
US$ average exchange rate (yen) |
118 | 127 | | ||||
Euro average exchange rate (yen) |
135 | 117 | |
Although Kyocera Corporation and its consolidated subsidiaries (Kyocera) endeavored to expand sales of new products and develop new markets, weaker-than-expected demand during the first quarter, along with the impact of falling prices, resulted in a year-on-year decline in component sales such as Fine Ceramics Group and Electronic Device Group. Sales of Equipment Group were also down slightly year-on-year, despite an increase in sales of information equipment, due to the decline in mobile handset sales in the United States.
Sales of Others increased compared with the previous same period, because of the consolidation of Kyocera Chemical Corporation (Kyocera Chemical) into Kyocera in August 2002 and the contribution to the first quarter results for this fiscal year. As a whole, consolidated net sales during the first quarter were ¥253.1 billion, slightly down 0.3% from the same period of the previous year.
Profit from operations for the first quarter of the year ending March 31, 2004 decreased, as compared with the corresponding quarter of the previous fiscal year, due principally to a ¥4.6 billion revaluation gain recorded in the first quarter of the previous fiscal year in respect of the provision relating to the lawsuit with LaPine Technology Corporation (LTC) of the United States. Income before income taxes increased slightly, however, due to a significant decrease during the first quarter of the current fiscal year, as compared with the corresponding quarter of the previous fiscal year, in the foreign exchange losses incurred by Kyocera in connection with its foreign currency deposit with the financial institution which is issuing a letter of credit necessary for Kyocera to continue the lawsuit with LTC. Such deposit has been made to reduce the service fee charged by the financial institution on the letter of credit. In addition, net income increased as a result of the absence of net losses amounting to ¥2.3 billion as a cumulative effect under Statement of Financial Accounting Standards (SFAS) No. 142, Goodwill and Other Intangible Assets.
4
During the first quarter, agreement was reached on May 21st to make Kinseki, Limited. (Kinseki) a wholly-owned subsidiary through stock swap in order to strengthen its existing businesses, as part of Kyoceras core strategy initiative of high-value-added diversification. Kinseki is scheduled to become a wholly-owned subsidiary of the Company on August 1. In addition, agreement was reached on June 30 with IBM Corporation and IBM Japan Ltd. to transfer the SLCtm (Surface Laminar Circuitrytm: laminated high-density printed circuit board) business of IBM Japan Ltd.s Yasu Site to Kyocera. With the transfer of this business, Kyocera will establish a new company, which will begin operations as a new subsidiary in September 2003.
* | SLCtm (Surface Laminar Circuitrytm) is a laminated high-density printed circuit board developed by IBM Corporation of the United States, and Surface Laminar Circuitrytm is a trademark of IBM Corporation. |
2. | Consolidated Operating Segments |
Three Months Ended June 30, |
Increase (%) |
||||||||
2003 |
2002 |
||||||||
(Yen in millions) | |||||||||
Net Sales |
253,126 | 253,930 | (0.3 | ) | |||||
Fine Ceramics Group |
56,664 | 58,856 | (3.7 | ) | |||||
Electronic Device Group |
55,835 | 58,400 | (4.4 | ) | |||||
Equipment Group |
122,650 | 124,961 | (1.8 | ) | |||||
Others |
21,363 | 15,042 | 42.0 | ||||||
Adjustments and eliminations |
(3,386 | ) | (3,329 | ) | | ||||
Operating Profit |
14,929 | 14,761 | 1.1 | ||||||
Fine Ceramics Group |
4,681 | 3,717 | 25.9 | ||||||
Electronic Device Group |
1,309 | 2,176 | (39.8 | ) | |||||
Equipment Group |
7,350 | 8,341 | (11.9 | ) | |||||
Others |
1,589 | 527 | 201.5 |
1) | Fine Ceramics Group |
Although sales of semiconductor parts declined, sales of fine ceramic parts such as parts for LCD fabrication equipment and sapphire substrates for projectors achieved a steady growth year-on-year. Applied ceramic products such as solar energy systems and cutting tools resulted in significant increase of sales and profit.
2) | Electronic Device Group |
Kyocera recognized start-up costs associated with the launch of the micro-device business, and capacitor business including AVX Corporation, a U.S. subsidiary experienced a tough business situation in terms of sales and profit. However, both sales and profit of thin-film products and connectors grew.
3) | Equipment Group |
Sales and profit of telecommunications equipment were down, due to a depressed mobile handset market overseas, and optical instruments were also stagnant. For information equipment, however, sales increased year-on-year, and improvement in product mix and continued cost reductions generated a considerable increase in operating profit.
4) | Others |
Kyocera Chemical newly contributed to this segment during the quarter and Kyocera Communication Systems Co., Ltd. achieved a significant growth in sales and profit.
5
3. | Geographic Segments |
Three Months Ended June 30, |
Increase (%) |
||||||
2003 |
2002 |
||||||
(Yen in millions) | |||||||
Net Sales |
253,126 | 253,930 | (0.3 | ) | |||
Japan |
98,854 | 90,513 | 9.2 | ||||
United States of America |
59,000 | 79,833 | (26.1 | ) | |||
Asia |
45,729 | 39,421 | 16.0 | ||||
Europe |
36,972 | 33,611 | 10.0 | ||||
Others |
12,571 | 10,552 | 19.1 |
1) | Japan |
Net sales increased year-on-year, due to increased sales of fine ceramic parts and telecommunications equipment.
2) | United States of America |
Net sales declined year-on-year, mainly due to lower mobile handsets sales.
3) | Asia |
Net sales increased year-on-year, due to expanded sales of telecommunications equipment, such as PHS- related products for China.
4) | Europe |
Net sales increased year-on-year as a result of increased sales of information equipment.
4. | Cash Flows |
Cash and cash equivalents at June 30, 2003 increased by ¥1.3 billion to ¥299.6 billion compared with March 31, 2003.
Three Months Ended June 30, |
||||||
2003 |
2002 |
|||||
(Yen in millions) | ||||||
Cash flows from operating activities |
6,919 | 50,181 | ||||
Cash flows from investing activities |
2,841 | (25,769 | ) | |||
Cash flows from financing activities |
(9,391 | ) | (14,269 | ) | ||
Effect of exchange rate changes on cash and cash equivalents |
953 | (10,265 | ) | |||
Net increase (decrease) in cash and cash equivalents |
1,322 | (122 | ) | |||
Cash and cash equivalents at beginning of period |
298,310 | 280,899 | ||||
Cash and cash equivalents at end of period |
299,632 | 280,777 |
1) | Cash Flows from Operating Activities |
Net cash provided by operating activities for the three months ended June 30, 2003 decreased by ¥43.3 billion to ¥6.9 billion from the previous same period of ¥50.2 billion. This was due mainly to increases in inventories and payments for income taxes and a decrease in notes and accounts payable, although net income increased by ¥3.3 billion to ¥10.7 billion compared with the previous same period.
2) | Cash Flows from Investing Activities |
Net cash provided by investing activities for the three months ended June 30, 2003 increased by ¥28.6 billion to ¥2.8 billion from net cash used in the previous same period of ¥25.8 billion. This was due mainly to a decrease in purchase of securities and an increase in proceeds from maturities of securities.
3) | Cash Flows from Financing Activities |
Net cash used in financing activities for the three months ended June 30, 2003 decreased by ¥4.9 billion to ¥9.4 billion from the previous same period of ¥14.3 billion. This was due mainly to an increase in short-term debt.
6
5. | Prospects for the Year Ending March 31, 2004 |
1) | Economic Situation and Business Environment |
The prospects for economic conditions include a return to stability in the Asian economy as the SARS crisis settles down, continued sluggishness in the European economy, and a slow recovery in the U.S. economy. Because the Japanese economy is strongly affected by the U.S. economy, the future for Japan remains unclear.
The electronics industry expects a continued increase in demand for personal computers, as well as digital AV equipment like digital cameras and DVDs. Production of mobile handsets is expected to increase, due to growing demand for color LCDs and camera equipped models, but the direction of personal consumption remains unclear amid low expectations for a stable recovery in the global economy.
Given this business environment, Kyocera aims to improve its business performance by continuing to develop new markets and expand sales of new products, and by implementing further cost reductions. There is no revision of our initial forecast for the fiscal year ending March 31, 2004, and a detailed forecast of the previously announced is as follows.
2) | Consolidated Financial Forecast for the Year Ending March 31, 2004 (Announced April 25, 2003) |
Year Ending March 31, 2004 |
Percent change from the previous year (%) | |||
(Yen in millions) |
||||
Net sales |
1,140,000 | 6.6 | ||
Profit from operations |
89,000 | 6.7 | ||
Income before income taxes |
92,000 | 21.0 | ||
Net income |
52,000 | 26.3 | ||
US$ average exchange rate (yen) |
115 | | ||
Euro average exchange rate (yen) |
121 | |
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 devices; 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. 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.
7
CONSOLIDATED BALANCE SHEETS
Yen in millions |
||||||||||||||||
(Unaudited) June 30, 2003 |
March 31, 2003 |
Increase (Decrease) |
||||||||||||||
Amount |
% |
Amount |
% |
|||||||||||||
Current assets : |
||||||||||||||||
Cash and cash equivalents |
¥ | 299,632 | ¥ | 298,310 | ¥ | 1,322 | ||||||||||
Restricted cash |
58,321 | 56,368 | 1,953 | |||||||||||||
Short-term investments |
15,641 | 14,651 | 990 | |||||||||||||
Trade notes receivable |
39,104 | 35,446 | 3,658 | |||||||||||||
Trade accounts receivable |
167,350 | 179,750 | (12,400 | ) | ||||||||||||
Short-term finance receivables |
60,365 | 31,254 | 29,111 | |||||||||||||
Less allowances for doubtful accounts and sales returns |
(7,452 | ) | (7,703 | ) | 251 | |||||||||||
Inventories |
194,135 | 183,156 | 10,979 | |||||||||||||
Deferred income taxes |
51,742 | 52,136 | (394 | ) | ||||||||||||
Other current assets |
25,346 | 19,054 | 6,292 | |||||||||||||
Total current assets |
904,184 | 53.2 | 862,422 | 52.7 | 41,762 | |||||||||||
Non-current assets : |
||||||||||||||||
Investments in and advances to affiliates and unconsolidated subsidiaries |
24,783 | 24,398 | 385 | |||||||||||||
Securities and other investments |
359,419 | 308,137 | 51,282 | |||||||||||||
Total investments and advances |
384,202 | 22.6 | 332,535 | 20.3 | 51,667 | |||||||||||
Long-term finance receivables |
99,269 | 5.8 | 125,728 | 7.7 | (26,459 | ) | ||||||||||
Property, plant and equipment, at cost : |
||||||||||||||||
Land |
54,069 | 53,973 | 96 | |||||||||||||
Buildings |
203,423 | 203,387 | 36 | |||||||||||||
Machinery and equipment |
590,459 | 587,076 | 3,383 | |||||||||||||
Construction in progress |
7,095 | 5,483 | 1,612 | |||||||||||||
Less accumulated depreciation |
(604,912 | ) | (600,414 | ) | (4,498 | ) | ||||||||||
250,134 | 14.7 | 249,505 | 15.3 | 629 | ||||||||||||
Goodwill |
25,805 | 1.5 | 25,703 | 1.6 | 102 | |||||||||||
Intangible assets |
13,792 | 0.8 | 15,068 | 0.9 | (1,276 | ) | ||||||||||
Other assets |
22,634 | 1.4 | 24,053 | 1.5 | (1,419 | ) | ||||||||||
Total non-current assets |
795,836 | 46.8 | 772,592 | 47.3 | 23,244 | |||||||||||
¥ | 1,700,020 | 100.0 | ¥ | 1,635,014 | 100.0 | ¥ | 65,006 | |||||||||
Note 1: | Restricted cash represents the amount of time deposit to a financial institution in order to reduce the cost for the issuance of letter of credit in connection with a legal proceeding. |
Note 2: | Effective April 1, 2002, Kyocera adopted SFAS No.142, Goodwill and Other Intangible Assets. According to this standard, the intangible assets formerly included in other assets is separately disclosed. |
8
Yen in millions |
||||||||||||||||
(Unaudited) June 30, 2003 |
March 31, 2003 |
Increase (Decrease) |
||||||||||||||
Amount |
% |
Amount |
% |
|||||||||||||
Current liabilities : |
||||||||||||||||
Short-term borrowings |
¥ | 111,600 | ¥ | 107,886 | ¥ | 3,714 | ||||||||||
Current portion of long-term debt |
42,513 | 30,198 | 12,315 | |||||||||||||
Trade notes and accounts payable |
93,588 | 98,105 | (4,517 | ) | ||||||||||||
Other notes and accounts payable |
32,635 | 28,428 | 4,207 | |||||||||||||
Accrued payroll and bonus |
41,614 | 33,059 | 8,555 | |||||||||||||
Accrued income taxes |
9,726 | 28,060 | (18,334 | ) | ||||||||||||
Accrued litigation expenses |
42,112 | 41,862 | 250 | |||||||||||||
Other accrued expenses |
22,943 | 23,387 | (444 | ) | ||||||||||||
Other current liabilities |
15,518 | 14,589 | 929 | |||||||||||||
Total current liabilities |
412,249 | 24.2 | 405,574 | 24.8 | 6,675 | |||||||||||
Non-current liabilities : |
||||||||||||||||
Long-term debt |
40,451 | 60,736 | (20,285 | ) | ||||||||||||
Accrued pension and severance costs |
74,909 | 74,906 | 3 | |||||||||||||
Deferred income taxes |
51,266 | 22,879 | 28,387 | |||||||||||||
Other non-current liabilities |
4,644 | 5,859 | (1,215 | ) | ||||||||||||
Total non-current liabilities |
171,270 | 10.1 | 164,380 | 10.0 | 6,890 | |||||||||||
Total liabilities |
583,519 | 34.3 | 569,954 | 34.8 | 13,565 | |||||||||||
Minority interests in subsidiaries |
62,579 | 3.7 | 61,560 | 3.8 | 1,019 | |||||||||||
Stockholders equity : |
||||||||||||||||
Common stock |
115,703 | 115,703 | | |||||||||||||
Additional paid-in capital |
167,675 | 167,675 | | |||||||||||||
Retained earnings |
833,531 | 828,350 | 5,181 | |||||||||||||
Accumulated other comprehensive income |
(10,940 | ) | (56,194 | ) | 45,254 | |||||||||||
Treasury stock, at cost |
(52,047 | ) | (52,034 | ) | (13 | ) | ||||||||||
Total stockholders equity |
1,053,922 | 62.0 | 1,003,500 | 61.4 | 50,422 | |||||||||||
¥ | 1,700,020 | 100.0 | ¥ | 1,635,014 | 100.0 | ¥ | 65,006 | |||||||||
Note 3: Accumulated other comprehensive income is as follows:
Yen in millions |
||||||||
June 30, 2003 |
March 31, 2003 |
|||||||
Net unrealized gains (losses) on securities |
¥ | 11,117 | ¥ | (29,955 | ) | |||
Net unrealized losses on derivative financial instruments |
¥ | (268 | ) | ¥ | (331 | ) | ||
Minimum pension liability adjustments |
¥ | (10,931 | ) | ¥ | (10,931 | ) | ||
Foreign currency translation adjustments |
¥ | (10,858 | ) | ¥ | (14,977 | ) |
9
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
Yen in millions and shares in thousands, except per share amounts |
|||||||||||||||||||||
Three months ended June 30, |
Increase (Decrease) |
||||||||||||||||||||
2003 |
2002 |
||||||||||||||||||||
Amount |
% |
Amount |
% |
Amount |
% |
||||||||||||||||
Net sales |
¥ | 253,126 | 100.0 | ¥ | 253,930 | 100.0 | ¥ | (804 | ) | (0.3 | ) | ||||||||||
Cost of sales |
189,539 | 74.9 | 185,246 | 73.0 | 4,293 | 2.3 | |||||||||||||||
Gross profit |
63,587 | 25.1 | 68,684 | 27.0 | (5,097 | ) | (7.4 | ) | |||||||||||||
Selling, general and administrative expenses |
50,789 | 20.0 | 46,442 | 18.2 | 4,347 | 9.4 | |||||||||||||||
Profit from operations |
12,798 | 5.1 | 22,242 | 8.8 | (9,444 | ) | (42.5 | ) | |||||||||||||
Interest and dividend income |
1,635 | 0.6 | 1,688 | 0.6 | (53 | ) | (3.1 | ) | |||||||||||||
Interest expense |
(361 | ) | (0.1 | ) | (440 | ) | (0.2 | ) | 79 | | |||||||||||
Foreign currency transaction gains (losses), net |
1,253 | 0.5 | (7,270 | ) | (2.9 | ) | 8,523 | | |||||||||||||
Equity in earnings of affiliates and unconsolidated subsidiaries |
733 | 0.3 | 15 | 0.0 | 718 | | |||||||||||||||
Other, net | 384 | 0.1 | 140 | 0.1 | 244 | 174.3 | |||||||||||||||
Total other income (expenses) |
3,644 | 1.4 | (5,867 | ) | (2.4 | ) | 9,511 | | |||||||||||||
Income before income taxes, minority interests and cumulative effect of change in accounting principle |
16,442 | 6.5 | 16,375 | 6.4 | 67 | 0.4 | |||||||||||||||
Income taxes |
6,294 | 2.5 | 6,658 | 2.6 | (364 | ) | (5.5 | ) | |||||||||||||
Income before minority interests and cumulative effect of change in accounting principle |
10,148 | 4.0 | 9,717 | 3.8 | 431 | 4.4 | |||||||||||||||
Minority interests |
582 | 0.2 | (70 | ) | (0.0 | ) | 652 | | |||||||||||||
Income before cumulative effect of change in accounting principle |
10,730 | 4.2 | 9,647 | 3.8 | 1,083 | 11.2 | |||||||||||||||
Cumulative effect of change in accounting principle |
| | (2,256 | ) | (0.9 | ) | 2,256 | | |||||||||||||
Net income |
¥ | 10,730 | 4.2 | ¥ | 7,391 | 2.9 | ¥ | 3,339 | 45.2 | ||||||||||||
Earnings per share : |
|||||||||||||||||||||
Income before cumulative effect of change in accounting principle : |
|||||||||||||||||||||
Basic |
¥ | 58.01 | ¥ | 51.03 | |||||||||||||||||
Diluted |
¥ | 58.01 | ¥ | 51.00 | |||||||||||||||||
Net income : |
|||||||||||||||||||||
Basic |
¥ | 58.01 | ¥ | 39.10 | |||||||||||||||||
Diluted |
¥ | 58.01 | ¥ | 39.07 | |||||||||||||||||
Weighted average number of shares of common stock outstanding : |
|||||||||||||||||||||
Basic |
184,963 | 189,042 | |||||||||||||||||||
Diluted |
184,963 | 189,165 |
10
Notes:
1. | Kyocera applies SFAS No.130, Financial Reporting of Comprehensive Income. |
Based on this standard, comprehensive income for the three months ended June 30, 2003 and 2002 was an increase of 55,984 million yen and 4,830 million yen, 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.
3. | Effective April 1, 2002, Kyocera adopted SFAS No.142, Goodwill and Other Intangible Assets. |
Upon the adoption of this standard, Kyocera recognized cumulative effects of this change in accounting principle, net of tax amounted to 2,256 million yen for the three months ended June 30, 2002.
11
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
Yen in millions |
||||||||
Three months ended June 30, |
||||||||
2003 |
2002 |
|||||||
Cash flows from operating activities: |
||||||||
Net income |
¥ | 10,730 | ¥ | 7,391 | ||||
Adjustments to reconcile net income to net cash provided by operating activities : |
||||||||
Depreciation and amortization |
16,086 | 17,351 | ||||||
Cumulative effect of change in accounting principle |
| 2,256 | ||||||
Foreign currency adjustments |
(1,230 | ) | 7,372 | |||||
Decrease in receivables |
6,900 | 5,571 | ||||||
(Increase) decrease in inventories |
(9,221 | ) | 8,496 | |||||
(Increase) decrease in other current assets |
(2,495 | ) | 1,726 | |||||
Decrease in notes and accounts payable |
(7,141 | ) | (1,707 | ) | ||||
Other, net |
(6,710 | ) | 1,725 | |||||
Net cash provided by operating activities |
6,919 | 50,181 | ||||||
Cash flows from investing activities : |
||||||||
Payments for purchases of securities |
(13,408 | ) | (22,281 | ) | ||||
Payments for purchases of investments and advances |
(86 | ) | (109 | ) | ||||
Sales and maturities of securities |
30,240 | 7,751 | ||||||
Payments for purchases of property, plant and equipment, and intangible assets |
(12,148 | ) | (11,520 | ) | ||||
Proceeds from sales of property, plant and equipment, and intangible assets |
569 | 424 | ||||||
Acquisitions of businesses, net of cash acquired |
45 | | ||||||
Restricted cash |
(1,994 | ) | (511 | ) | ||||
Other, net |
(377 | ) | 477 | |||||
Net cash provided by (used in) investing activities |
2,841 | (25,769 | ) | |||||
Cash flows from financing activities : |
||||||||
Increase in short-term debt |
3,499 | 1,029 | ||||||
Proceeds from issuance of long-term debt |
463 | 396 | ||||||
Payments of long-term debt |
(8,506 | ) | (10,238 | ) | ||||
Dividends paid |
(5,363 | ) | (5,564 | ) | ||||
Other, net |
516 | 108 | ||||||
Net cash used in financing activities |
(9,391 | ) | (14,269 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents |
953 | (10,265 | ) | |||||
Net increase (decrease) in cash and cash equivalents |
1,322 | (122 | ) | |||||
Cash and cash equivalents at beginning of period |
298,310 | 280,899 | ||||||
Cash and cash equivalents at end of period |
¥ | 299,632 | ¥ | 280,777 | ||||
12
SEGMENT INFORMATION (Unaudited)
1. | Operating segments : |
Yen in millions |
|||||||||||||||
Three months ended June 30, |
|||||||||||||||
2003 |
2002 |
Increase (Decrease) |
|||||||||||||
Amount |
Amount |
Amount |
% |
||||||||||||
Net sales : |
|||||||||||||||
Fine Ceramics Group |
¥ | 56,664 | ¥ | 58,856 | ¥ | (2,192 | ) | (3.7 | ) | ||||||
Electronic Device Group |
55,835 | 58,400 | (2,565 | ) | (4.4 | ) | |||||||||
Equipment Group |
122,650 | 124,961 | (2,311 | ) | (1.8 | ) | |||||||||
Others |
21,363 | 15,042 | 6,321 | 42.0 | |||||||||||
Adjustments and eliminations |
(3,386 | ) | (3,329 | ) | (57 | ) | | ||||||||
¥ | 253,126 | ¥ | 253,930 | ¥ | (804 | ) | (0.3 | ) | |||||||
Operating profit : |
|||||||||||||||
Fine Ceramics Group |
¥ | 4,681 | ¥ | 3,717 | ¥ | 964 | 25.9 | ||||||||
Electronic Device Group |
1,309 | 2,176 | (867 | ) | (39.8 | ) | |||||||||
Equipment Group |
7,350 | 8,341 | (991 | ) | (11.9 | ) | |||||||||
Others |
1,589 | 527 | 1,062 | 201.5 | |||||||||||
14,929 | 14,761 | 168 | 1.1 | ||||||||||||
Corporate |
720 | 1,483 | (763 | ) | (51.4 | ) | |||||||||
Equity in earnings of affiliates and unconsolidated subsidiaries |
733 | 15 | 718 | | |||||||||||
Adjustments and eliminations |
60 | 116 | (56 | ) | (48.3 | ) | |||||||||
Income before income taxes |
¥ | 16,442 | ¥ | 16,375 | ¥ | 67 | 0.4 | ||||||||
Depreciation and amortization : |
|||||||||||||||
Fine Ceramics Group |
¥ | 3,744 | ¥ | 4,609 | ¥ | (865 | ) | (18.8 | ) | ||||||
Electronic Device Group |
5,575 | 6,286 | (711 | ) | (11.3 | ) | |||||||||
Equipment Group |
4,924 | 4,879 | 45 | 0.9 | |||||||||||
Others |
1,253 | 959 | 294 | 30.7 | |||||||||||
Corporate |
590 | 618 | (28 | ) | (4.5 | ) | |||||||||
¥ | 16,086 | ¥ | 17,351 | ¥ | (1,265 | ) | (7.3 | ) | |||||||
Capital expenditures : |
|||||||||||||||
Fine Ceramics Group |
¥ | 2,808 | ¥ | 1,904 | ¥ | 904 | 47.5 | ||||||||
Electronic Device Group |
5,504 | 2,594 | 2,910 | 112.2 | |||||||||||
Equipment Group |
4,891 | 3,602 | 1,289 | 35.8 | |||||||||||
Others |
278 | 870 | (592 | ) | (68.0 | ) | |||||||||
Corporate |
666 | 504 | 162 | 32.1 | |||||||||||
¥ | 14,147 | ¥ | 9,474 | ¥ | 4,673 | 49.3 | |||||||||
13
2. | Geographic segments (Sales and Operating profits by geographic area) : |
Yen in millions |
|||||||||||||||
Three months ended June 30, |
|||||||||||||||
2003 |
2002 |
Increase (Decrease) |
|||||||||||||
Amount |
Amount |
Amount |
% |
||||||||||||
Net sales: |
|||||||||||||||
Japan |
¥ | 114,719 | ¥ | 102,913 | ¥ | 11,806 | 11.5 | ||||||||
Intra-group sales and transfer between geographic areas |
62,000 | 60,862 | 1,138 | 1.9 | |||||||||||
176,719 | 163,775 | 12,944 | 7.9 | ||||||||||||
United States of America |
67,020 | 85,877 | (18,857 | ) | (22.0 | ) | |||||||||
Intra-group sales and transfer between geographic areas |
6,377 | 4,916 | 1,461 | 29.7 | |||||||||||
73,397 | 90,793 | (17,396 | ) | (19.2 | ) | ||||||||||
Asia |
29,252 | 25,875 | 3,377 | 13.1 | |||||||||||
Intra-group sales and transfer between geographic areas |
23,068 | 19,887 | 3,181 | 16.0 | |||||||||||
52,320 | 45,762 | 6,558 | 14.3 | ||||||||||||
Europe |
37,621 | 35,633 | 1,988 | 5.6 | |||||||||||
Intra-group sales and transfer between geographic areas |
7,729 | 7,492 | 237 | 3.2 | |||||||||||
45,350 | 43,125 | 2,225 | 5.2 | ||||||||||||
Others |
4,514 | 3,631 | 883 | 24.3 | |||||||||||
Intra-group sales and transfer between geographic areas |
1,593 | 2,251 | (658 | ) | (29.2 | ) | |||||||||
6,107 | 5,882 | 225 | 3.8 | ||||||||||||
Adjustments and eliminations |
(100,767 | ) | (95,407 | ) | (5,360 | ) | | ||||||||
¥ | 253,126 | ¥ | 253,930 | ¥ | (804 | ) | (0.3 | ) | |||||||
Operating Profits : | |||||||||||||||
Japan |
¥ | 19,165 | ¥ | 9,374 | ¥ | 9,791 | 104.4 | ||||||||
United States of America |
(1,797 | ) | 3,223 | (5,020 | ) | | |||||||||
Asia |
917 | 2,738 | (1,821 | ) | (66.5 | ) | |||||||||
Europe |
(1,999 | ) | (2,263 | ) | 264 | | |||||||||
Others |
176 | 379 | (203 | ) | (53.6 | ) | |||||||||
16,462 | 13,451 | 3,011 | 22.4 | ||||||||||||
Adjustments and eliminations |
(1,473 | ) | 1,426 | (2,899 | ) | | |||||||||
14,989 | 14,877 | 112 | 0.8 | ||||||||||||
Corporate |
720 | 1,483 | (763 | ) | (51.4 | ) | |||||||||
Equity in earnings of affiliates and unconsolidated subsidiaries |
733 | 15 | 718 | | |||||||||||
Income before income taxes |
¥ | 16,442 | ¥ | 16,375 | ¥ | 67 | 0.4 | ||||||||
14
3. | Geographic segments (Sales by region) : |
Yen in millions |
|||||||||||||||||||
Three months ended June 30, |
|||||||||||||||||||
2003 |
2002 |
Increase (Decrease) |
|||||||||||||||||
Amount |
% |
Amount |
% |
Amount |
% |
||||||||||||||
Japan |
¥ | 98,854 | 39.1 | ¥ | 90,513 | 35.7 | ¥ | 8,341 | 9.2 | ||||||||||
United States of America |
59,000 | 23.3 | 79,833 | 31.4 | (20,833 | ) | (26.1 | ) | |||||||||||
Asia |
45,729 | 18.0 | 39,421 | 15.5 | 6,308 | 16.0 | |||||||||||||
Europe |
36,972 | 14.6 | 33,611 | 13.2 | 3,361 | 10.0 | |||||||||||||
Others |
12,571 | 5.0 | 10,552 | 4.2 | 2,019 | 19.1 | |||||||||||||
Net sales |
¥ | 253,126 | 100.0 | ¥ | 253,930 | 100.0 | ¥ | (804 | ) | (0.3 | ) | ||||||||
Sales outside Japan |
¥ | 154,272 | ¥ | 163,417 | ¥ | (9,145 | ) | (5.6 | ) | ||||||||||
Sales outside Japan to net sales |
60.9 | % | 64.3 | % |
15