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 2004
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 Finance Division |
Date: July 29, 2004
Information furnished on this form:
EXHIBITS
Exhibit Number |
||
1. | Consolidated Financial Results for the Three Months Ended June 30, 2004 | |
2. | Consolidated Financial Results for the Three Months Ended June 30, 2004 (Information purposes only) |
KYOCERA CORPORATION |
Consolidated Financial Highlights (Unaudited)
Results for the Three Months Ended June 30, 2004
(Yen in millions, except per share amounts and exchange rates)
Three Months Ended June 30, |
Increase (Decrease) (%) |
||||||
2004 |
2003 |
||||||
Net sales |
293,143 | 253,126 | 15.8 | ||||
Profit from operations |
34,751 | 12,798 | 171.5 | ||||
Income before income taxes |
38,062 | 16,442 | 131.5 | ||||
Net income |
21,982 | 10,730 | 104.9 | ||||
Average exchange rates : |
|||||||
US$ |
110 | 118 | | ||||
Euro |
132 | 135 | | ||||
Earnings per share : |
|||||||
Net Income |
|||||||
Basic |
117.25 | 58.01 | | ||||
Diluted |
117.17 | 58.01 | | ||||
Capital expenditures |
11,811 | 14,147 | (16.5 | ) | |||
Depreciation |
13,233 | 14,021 | (5.6 | ) | |||
R&D expenses |
13,875 | 12,243 | 13.3 | ||||
Sales of products manufactured outside Japan to net sales (%) |
36.1 | 36.0 | |
- 1 -
Consolidated Results of Kyocera Corporation and its Subsidiaries
for the Three Months Ended June 30, 2004
1. | The basic items on preparation for consolidated results for the three months ended June 30, 2004 : |
(1) | The consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America. |
(2) | Change in accounting policies : None |
(3) | Changes in scope of consolidation and application of the equity method : |
Consolidation |
Equity method | |||
Increase | 1 | 0 | ||
Decrease | 1 | 0 |
2. | Consolidated financial information for the three months ended June 30, 2004 : |
(1) | Consolidated results of operations : |
Three months ended June 30, |
Year ended March 31, |
|||||||||||
2004 |
2003 |
2004 |
||||||||||
Net sales |
¥ | 293,143 million | ¥ | 253,126 million | ¥ | 1,140,814 million | ||||||
% change from the previous period |
15.8 | % | (0.3 | )% | 6.6 | % | ||||||
Profit from operations |
34,751 million | 12,798 million | 108,962 million | |||||||||
% change from the previous period |
171.5 | % | (42.5 | )% | 30.7 | % | ||||||
Income before income taxes |
38,062 million | 16,442 million | 115,040 million | |||||||||
% change from the previous period |
131.5 | % | 0.4 | % | 51.3 | % | ||||||
Net income |
21,982 million | 10,730 million | 68,086 million | |||||||||
% change from the previous period |
104.9 | % | 45.2 | % | 65.4 | % | ||||||
Earnings per share : |
||||||||||||
Basic |
¥ | 117.25 | ¥ | 58.01 | ¥ | 364.79 | ||||||
Diluted |
117.17 | 58.01 | 364.78 |
(2) | Consolidated financial condition : |
June 30, |
March 31, |
|||||||||||
2004 |
2003 |
2004 |
||||||||||
Total assets |
¥ | 1,833,390 million | ¥ | 1,700,020 million | ¥ | 1,794,758 million | ||||||
Stockholders equity |
1,186,373 million | 1,053,922 million | 1,153,746 million | |||||||||
Stockholders equity to total assets |
64.7 | % | 62.0 | % | 64.3 | % | ||||||
Stockholders equity per share |
¥ | 6,327.55 | ¥ | 5,698.04 | ¥ | 6,153.83 |
- 2 -
(3) | Consolidated cash flows : |
Three months ended June 30, |
Year ended March 31, | ||||||||
2004 |
2003 |
2004 | |||||||
Cash flows from operating activities |
¥ | 26,812 million | ¥ | 6,919 million | ¥ | 62,575 million | |||
Cash flows from investing activities |
(114,211) million | 2,841 million | 29,581 million | ||||||
Cash flows from financing activities |
(7,576) million | (9,391) million | (20,422) million | ||||||
Cash and cash equivalents at end of period |
267,801 million | 299,632 million | 361,132 million |
3. | Consolidated financial forecast for the year ending March 31, 2005 : |
There is no revision of our initial forecast for the fiscal year ending March 31, 2005, which was described in Form 6-K filed on April 27, 2004. (Please refer to the accompanying Forward Looking Statements on page 11 with regard to the forecasts.)
- 3 -
Business Results and Cash Flows for the Three Months Ended June 30, 2004
1. Business Results for the Three Months Ended June 30, 2004
(1) Economic Situation and Business Environment
The Japanese economy showed clear signs of recovery during the three months ended June 30, 2004 (the first quarter) represented by improving corporate earnings, expanding capital investment in the private sector and increasing personal consumption. The U.S economy also recovered steadily supported by an improvement in the employment situation in addition to expansion of capital expenditures in the private sector and increasing personal consumption. The European economy as a whole recovered moderately. Asian economy grew smoothly due mainly to the strong growth of the Chinese economy.
In the electronics industry, the production volume increased in Asia, especially Japan and China for mobile phones and other digital consumer products. Additionally, markets for semiconductors and personal computers expanded steadily on a global scale.
(2) Consolidated Financial Results
(Yen in millions, except per share amounts and exchange rates)
Three Months Ended June 30, |
Increase (Decrease) (%) | |||||
2004 |
2003 |
|||||
Net sales |
293,143 | 253,126 | 15.8 | |||
Profit from operations |
34,751 | 12,798 | 171.5 | |||
Income before income taxes |
38,062 | 16,442 | 131.5 | |||
Net income |
21,982 | 10,730 | 104.9 | |||
Diluted earnings per share |
117.17 | 58.01 | | |||
US$ average exchange rate |
110 | 118 | | |||
Euro average exchange rate |
132 | 135 | |
1) Sales
Sales of Kyocera Corporation and its consolidated subsidiaries (Kyocera) for the first quarter increased in all operating segments compared with those in the three months ended June 30, 2003 (the previous first quarter).
Demands for Kyoceras components business such as Fine Ceramics Group and Electronic Device Group were strong supported by the favorably increased production activities. As favorable market environment has spurred an increase in production volume and a decline in prices for components has not been intense, sales of Kyoceras components business has increased significantly in the first quarter compared with the previous first quarter. Sales of Equipment Group have increased due mainly to increased sales of mobile handsets in the U. S. and information equipment.
As a result, consolidated net sales for the first quarter amounted to ¥293.1 billion, an increase of 15.8% compared with the previous first quarter.
- 4 -
2) Profit
The effect of an increase in sales coupled with a considerable growth in component production volume resulted in an improvement of production efficiencies. Group-wide structural reforms implemented in the previous fiscal year that aimed to improve operating profitability also began to show positive effects in the first quarter. Consequently, profit from operations for the first quarter increased approximately 2.7 times compared with the previous first quarter. Income before income taxes increased to ¥38.1 billion, approximately 2.3 times, while net income increased to ¥22.0 billion, approximately 2.0 times compared with the previous first quarter, respectively.
3) Effect of Exchange Rate Fluctuations
The yen appreciated 8 yen against the U.S. dollar and 3 yen against Euro compared with the average exchange rates in the previous first quarter, respectively. Consequently, net sales after translation into yen were negatively affected by approximately ¥10.5 billion compared with the previous first quarter. Also, income before income taxes after translation into yen was negatively affected by approximately ¥2.4 billion compared with the previous first quarter.
(3) Operating Highlights
1) | Kinseki, Ltd. (Kinseki), a wholly-owned subsidiary, and Kyocera Corporation re-organized the operations related to crystal components on April 1, 2004. Kinsekis marketing division was merged into the marketing division of the electronic component of Kyocera Corporation and the manufacturing division of crystal related components of Kyocera Corporation was transferred to Kinseki. At the same time, Kinseki changed its name to Kyocera Kinseki Corporation (Kyocera Kinseki). |
2) | On April 1, 2004, Kyocera integrated the organic material components business into Kyocera SLC Technologies Corporation (KST), a wholly owned subsidiary. Management resources relating to the organic material components business were concentrated in KST to enhance the synergistic effects within Kyocera and to expand the business base. |
3) | On May 18, 2004, Kyocera announced that a new factory would be built in the City of Ayabe, Kyoto Prefecture. The new factory would have three floors high with a total floor area of 25,200 m2. Operations are expected to commence in June 2005. At the factory, KST plans to produce semiconductor organic packages and laminated high-density printed circuit boards used in micro processors and chipsets for digital consumer products. Planned investment in the factory will amount to approximately ¥17.0 billion in total. |
- 5 -
4) | On May 21, 2004, Kyocera reached an agreement with Kobe Steel, Ltd. (Kobe Steel) to merge the medical material operations of both companies into a successor company, Japan Medical Materials Corporation, which will be established on September 1, 2004. As a dedicated manufacturer of medical materials, a successor company will benefit from the integration of the specialized expertise of Kyocera and Kobe Steel in material processing technologies, while maximizing synergies by integrating development, production and marketing divisions. It will also seek to expand its business worldwide. |
5) | On June 21, 2004, the Carlyle Group (Carlyle), Kyocera, KDDI Corporation (KDDI) and DDI Pocket, Inc. (DDI Pocket) reached an agreement that a consortium of Kyocera and Carlyle would acquire the business of DDI Pocket, a subsidiary of KDDI. Under the agreement, the company that succeeds DDI Pockets business (the NewCo) will be 30% owned by Kyocera. In cooperation with NewCo, Kyocera will endeavor to expand sales in its PHS related business by carving out new markets in Japan as well as overseas. |
(4) Consolidated Operating Segments
(Yen in millions)
Three Months Ended June 30, |
Increase (Decrease) (%) |
||||||||
2004 |
2003 |
||||||||
Net sales |
293,143 | 253,126 | 15.8 | ||||||
Fine Ceramics Group |
72,591 | 56,664 | 28.1 | ||||||
Electronic Device Group |
70,068 | 55,835 | 25.5 | ||||||
Equipment Group |
130,321 | 122,650 | 6.3 | ||||||
Others |
25,926 | 21,156 | 22.5 | ||||||
Adjustments and eliminations |
(5,763 | ) | (3,179 | ) | | ||||
Operating profit |
33,911 | 14,885 | 127.8 | ||||||
Fine Ceramics Group |
11,591 | 4,681 | 147.6 | ||||||
Electronic Device Group |
11,528 | 1,309 | 780.7 | ||||||
Equipment Group |
7,904 | 7,350 | 7.5 | ||||||
Others |
2,888 | 1,545 | 86.9 | ||||||
Corporate |
4,031 | 764 | 427.6 | ||||||
Equity in earnings of affiliates and unconsolidated subsidiaries |
127 | 733 | (82.7 | ) | |||||
Adjustments and eliminations |
(7 | ) | 60 | | |||||
Income before income taxes |
38,062 | 16,442 | 131.5 |
Commencing in the third quarter of the fiscal year ended March 31, 2004 (October to December 2003), net sales and operating profit of Precision Machine Division of Kyocera Corporation, previously included within Others, have been charged to Corporate. Accordingly, previously reported net sales and operating profit of operating segment for the previous first quarter were restated.
- 6 -
1) Fine Ceramics Group
Demand for fine ceramic parts was strong, particularly for semiconductor and LCD fabrication equipment and sapphire substrates for LEDs. In semiconductor parts, sales of ceramic packages especially applicable for mobile handsets and digital consumer products increased appreciably. Sales of cutting tools and solar energy products also increased. Operating profit in this segment rose markedly in the first quarter, increasing approximately 2.5 times compared with the previous first quarter. Primary attributable factors were the effect of sales increases and the effects of cost reduction through expanded production in China, notably of semiconductor parts.
2) Electronic Device Group
Overall sales in this segment grew due primarily to strong performances from ceramic capacitors and crystal related components driven by an increase in component demand. In addition to sales contribution since the start of the fiscal year from Kyocera Kinseki, which became a consolidated subsidiary in August 2003, sales at AVX Corporation, a U.S. subsidiary, increased remarkably. Strong sales, improved rate of operation and the absence of restructuring charges that were recorded in the previous first quarter culminated in an approximately 8.8 times increase in operating profit.
3) Equipment Group
Sales of information equipment rose as Kyocera Mita Group secured major new customers and expanded its product line-up. Despite sluggish sales of mobile phones in Japan due mainly to the product line-up consisted mainly of stayed models, sales at KYOCERA WIRELESS CORP., a U.S. subsidiary, increased. As a result, sales of telecommunications equipment increased. Operating profit in this segment increased, due predominantly to improved margins of information equipment business, including successful product cost reduction by standardizing engines and components for printers and multi-function products.
4) Others
Sales and operating profits in this operating segment increased due to favorable results of Kyocera Chemical Corporation, especially in its business of flexible printed circuits materials and epoxy molding compounds for semiconductor packages, and favorable results at Kyocera Communication Systems Co., Ltd. (KCCS), especially in its data center business, network optimizing business and telecommunications engineering business.
- 7 -
(5) Orders and Production (Consolidated)
(Yen in millions)
Three Months Ended June 30, |
Increase (Decrease) (%) | |||||||
2004 |
2003 |
|||||||
Orders |
313,678 | 262,749 | 19.4 | |||||
Fine Ceramics Group |
76,387 | 59,846 | 27.6 | |||||
Electronic Device Group |
74,607 | 56,722 | 31.5 | |||||
Equipment Group |
141,614 | 126,542 | 11.9 | |||||
Others |
27,192 | 22,641 | 20.1 | |||||
Adjustments and eliminations |
(6,122 | ) | (3,002 | ) | | |||
Production |
302,083 | 256,778 | 17.6 | |||||
Fine Ceramics Group |
74,724 | 57,877 | 29.1 | |||||
Electronic Device group |
73,840 | 57,563 | 28.3 | |||||
Equipment Group |
135,732 | 127,030 | 6.9 | |||||
Others |
17,787 | 14,308 | 24.3 |
(6) Geographic Segments (Consolidated)
(Yen in millions)
Three Months Ended June 30, |
Increase (Decrease) (%) | |||||
2004 |
2003 |
|||||
Sales |
293,143 | 253,126 | 15.8 | |||
Japan |
101,602 | 98,854 | 2.8 | |||
The United States |
67,266 | 59,000 | 14.0 | |||
Asia |
59,011 | 45,729 | 29.0 | |||
Europe |
41,244 | 36,972 | 11.6 | |||
Others |
24,020 | 12,571 | 91.1 |
- 8 -
<Japan>
Sales increased compared with the previous first quarter due to a strong performance from the components business, notably Electronic Device Group and Fine Ceramics Group, and sales growth in information equipment, optical instruments and KCCS.
<The United States>
Sales increased considerably due to higher sales of mobile handsets and an improvement in the market environment surrounding the components business.
<Asia>
Sales in the previous first quarter were adversely affected by a slowdown in production activities in electronic industries in Asia caused by Severe Acute Respiratory Syndrome (SARS). The absence of such a factor in the first quarter resulted in a significant increase in component sales, and thus a striking increase in regional sales.
<Europe>
Sales grew considerably due primarily to an increase in sales of information equipment and electronic devices.
2. Cash flows
Cash and cash equivalents at June 30, 2004 decreased by ¥93,331 million to ¥267,801 million compared with March 31, 2004.
(Yen in millions)
Three Months Ended June 30, |
||||||
2004 |
2003 |
|||||
Cash flows from operating activities |
26,812 | 6,919 | ||||
Cash flows from investing activities |
(114,211 | ) | 2,841 | |||
Cash flows from financing activities |
(7,576 | ) | (9,391 | ) | ||
Effect of exchange rate changes on cash and cash equivalents |
1,644 | 953 | ||||
Net (decrease) increase in cash and cash equivalents |
(93,331 | ) | 1,322 | |||
Cash and cash equivalents at beginning of period |
361,132 | 298,310 | ||||
Cash and cash equivalents at end of period |
267,801 | 299,632 |
- 9 -
1) | Cash Flows from Operating Activities |
Net cash provided by operating activities in the first quarter increased by ¥19,893 million to ¥26,812 million from the previous first quarter of ¥6,919 million. This was due mainly to an increase in net income by ¥11,252 million to ¥21,982 million and a decrease in receivables.
2) | Cash Flows from Investing Activities |
Net cash used in investing activities in the first quarter increased by ¥117,052 million to ¥114,211 million from net cash provided in the previous first quarter of ¥2,841 million. This was due mainly to increases in purchases of the government bonds and negotiable certificate of deposits (CD) in consideration of current and future financial position according to our investment policy.
3) | Cash Flows from Financing Activities |
Net cash used in financing activities in the first quarter decreased by ¥1,815 million to ¥7,576 million from the previous first quarter of ¥9,391 million. This was due mainly to an increase in short-term debt.
- 10 -
3. Consolidated Financial Forecast for the Year Ending March 31, 2005 (described in Form 6-K filed on April 27, 2004)
There is no revision of our initial forecast for the fiscal year ending March 31, 2005, and detailed forecast of the previously described is as follows
(Yen in millions, except per share amounts and exchange rate)
The fiscal year ending March 31, 2005 (Forcast) |
Increase (Decrease) (%) compared with the fiscal year ended March 31, 2004 | |||
Net sales |
1,260,000 | 10.4 | ||
Profit from operations |
135,000 | 23.9 | ||
Income before income taxes |
140,000 | 21.7 | ||
Net income |
85,000 | 24.8 | ||
Diluted earnings per share |
455.40 | | ||
US$ average exchange rate |
100 | | ||
Euro average exchange rate |
123 | |
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 components; the extent and pace of future growth or contraction in information technology-related markets around the world, including those for communications and personal computers; and events that may impact negatively on our markets or supply chain, including terrorist acts and outbreaks of diseases such as SARS. 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.
- 11 -
CONSOLIDATED BALANCE SHEETS
Yen in millions | ||||||||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||||
June 30, 2004 |
March 31, 2004 |
June 30, 2003 | ||||||||||||||||
Amount |
% |
Amount |
% |
Amount |
% | |||||||||||||
Current assets : |
||||||||||||||||||
Cash and cash equivalents |
¥ | 267,801 | ¥ | 361,132 | ¥ | 299,632 | ||||||||||||
Restricted cash |
| | 58,321 | |||||||||||||||
Short-term investments |
70,470 | 3,855 | 15,641 | |||||||||||||||
Trade notes receivable |
39,558 | 33,801 | 39,104 | |||||||||||||||
Trade accounts receivable |
192,215 | 207,583 | 167,350 | |||||||||||||||
Short-term finance receivables |
71,494 | 70,553 | 60,365 | |||||||||||||||
Less allowances for doubtful accounts and sales returns |
(9,113 | ) | (8,468 | ) | (7,452 | ) | ||||||||||||
Inventories |
219,836 | 197,194 | 194,135 | |||||||||||||||
Deferred income taxes |
36,243 | 34,957 | 51,742 | |||||||||||||||
Other current assets |
35,014 | 33,089 | 25,346 | |||||||||||||||
Total current assets |
923,518 | 50.4 | 933,696 | 52.0 | 904,184 | 53.2 | ||||||||||||
Non-current assets : |
||||||||||||||||||
Investments in and advances to affiliates and unconsolidated subsidiaries |
23,880 | 24,054 | 24,783 | |||||||||||||||
Securities and other investments |
484,585 | 430,096 | 359,419 | |||||||||||||||
Total investments and advances |
508,465 | 27.7 | 454,150 | 25.3 | 384,202 | 22.6 | ||||||||||||
Long-term finance receivables |
82,762 | 4.5 | 88,512 | 5.0 | 99,269 | 5.8 | ||||||||||||
Property, plant and equipment, at cost : |
||||||||||||||||||
Land |
54,905 | 54,867 | 54,069 | |||||||||||||||
Buildings |
220,535 | 217,216 | 203,423 | |||||||||||||||
Machinery and equipment |
631,380 | 622,721 | 590,459 | |||||||||||||||
Construction in progress |
6,802 | 10,384 | 7,095 | |||||||||||||||
Less accumulated depreciation |
(661,480 | ) | (650,668 | ) | (604,912 | ) | ||||||||||||
252,142 | 13.8 | 254,520 | 14.2 | 250,134 | 14.7 | |||||||||||||
Goodwill |
25,531 | 1.4 | 25,254 | 1.4 | 25,805 | 1.5 | ||||||||||||
Intangible assets |
18,403 | 1.0 | 16,645 | 0.9 | 13,792 | 0.8 | ||||||||||||
Other assets |
22,569 | 1.2 | 21,981 | 1.2 | 22,634 | 1.4 | ||||||||||||
Total non-current assets |
909,872 | 49.6 | 861,062 | 48.0 | 795,836 | 46.8 | ||||||||||||
Total assets |
¥ | 1,833,390 | 100.0 | ¥ | 1,794,758 | 100.0 | ¥ | 1,700,020 | 100.0 | |||||||||
Note 1: | Restricted cash represents the amount of the time deposit to a financial institution in order to reduce the cost for the issuance of letter of credit in connection with the litigation against LaPine. Kyocera Corporation withdrew all restricted cash because Kyocera Corporation reached agreement to settle all claims in pending litigation on December 22, 2003 (U.S. time). |
- 12 -
Yen in millions | ||||||||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||||
June 30, 2004 |
March 31, 2004 |
June 30, 2003 | ||||||||||||||||
Amount |
% |
Amount |
% |
Amount |
% | |||||||||||||
Current liabilities : |
||||||||||||||||||
Short-term borrowings |
¥ | 105,488 | ¥ | 84,815 | ¥ | 111,600 | ||||||||||||
Current portion of long-term debt |
22,770 | 44,522 | 42,513 | |||||||||||||||
Trade notes and accounts payable |
106,510 | 110,759 | 93,588 | |||||||||||||||
Other notes and accounts payable |
34,092 | 38,115 | 32,635 | |||||||||||||||
Accrued payroll and bonus |
42,707 | 34,161 | 41,614 | |||||||||||||||
Accrued income taxes |
19,938 | 19,054 | 9,726 | |||||||||||||||
Accrued litigation expenses |
| | 42,112 | |||||||||||||||
Other accrued expenses |
27,072 | 28,665 | 22,943 | |||||||||||||||
Other current liabilities |
15,806 | 16,548 | 15,518 | |||||||||||||||
Total current liabilities |
374,383 | 20.4 | 376,639 | 21.0 | 412,249 | 24.2 | ||||||||||||
Non-current liabilities : |
||||||||||||||||||
Long-term debt |
69,813 | 70,608 | 40,451 | |||||||||||||||
Accrued pension and severance costs |
36,194 | 38,620 | 74,909 | |||||||||||||||
Deferred income taxes |
105,756 | 95,498 | 51,266 | |||||||||||||||
Other non-current liabilities |
6,174 | 6,409 | 4,644 | |||||||||||||||
Total non-current liabilities |
217,937 | 11.9 | 211,135 | 11.7 | 171,270 | 10.1 | ||||||||||||
Total liabilities |
592,320 | 32.3 | 587,774 | 32.7 | 583,519 | 34.3 | ||||||||||||
Minority interests in subsidiaries |
54,697 | 3.0 | 53,238 | 3.0 | 62,579 | 3.7 | ||||||||||||
Stockholders equity : |
||||||||||||||||||
Common stock |
115,703 | 115,703 | 115,703 | |||||||||||||||
Additional paid-in capital |
162,088 | 162,091 | 167,675 | |||||||||||||||
Retained earnings |
901,620 | 885,262 | 833,531 | |||||||||||||||
Accumulated other comprehensive income |
38,247 | 22,046 | (10,940 | ) | ||||||||||||||
Treasury stock, at cost |
(31,285 | ) | (31,356 | ) | (52,047 | ) | ||||||||||||
Total stockholders equity |
1,186,373 | 64.7 | 1,153,746 | 64.3 | 1,053,922 | 62.0 | ||||||||||||
Total liabilities, minority interests and stockholders equity |
¥ | 1,833,390 | 100.0 | ¥ | 1,794,758 | 100.0 | ¥ | 1,700,020 | 100.0 | |||||||||
Note 2: Accumulated other comprehensive income is as follows:
Yen in millions |
||||||||||||
June 30, 2004 |
March 31, 2004 |
June 30, 2003 |
||||||||||
Net unrealized gains on securities |
¥ | 71,738 | ¥ | 59,241 | ¥ | 11,117 | ||||||
Net unrealized gains (losses) on derivative financial instruments |
¥ | 15 | ¥ | (48 | ) | ¥ | (268 | ) | ||||
Minimum pension liability adjustments |
¥ | (1,477 | ) | ¥ | (1,477 | ) | ¥ | (10,931 | ) | |||
Foreign currency translation adjustments |
¥ | (32,029 | ) | ¥ | (35,670 | ) | ¥ | (10,858 | ) |
- 13 -
CONSOLIDATED STATEMENTS OF INCOME(Unaudited)
Yen in millions, except per share amounts |
|||||||||||||||||||||
Three months ended June 30, |
Increase (Decrease) |
||||||||||||||||||||
2004 |
2003 |
||||||||||||||||||||
Amount |
% |
Amount |
% |
Amount |
% |
||||||||||||||||
Net sales |
¥ | 293,143 | 100.0 | ¥ | 253,126 | 100.0 | ¥ | 40,017 | 15.8 | ||||||||||||
Cost of sales |
205,508 | 70.1 | 189,539 | 74.9 | 15,969 | 8.4 | |||||||||||||||
Gross profit |
87,635 | 29.9 | 63,587 | 25.1 | 24,048 | 37.8 | |||||||||||||||
Selling, general and administrative expenses |
52,884 | 18.0 | 50,789 | 20.0 | 2,095 | 4.1 | |||||||||||||||
Profit from operations |
34,751 | 11.9 | 12,798 | 5.1 | 21,953 | 171.5 | |||||||||||||||
Other income or expenses : |
|||||||||||||||||||||
Interest and dividend income |
2,056 | 0.7 | 1,635 | 0.6 | 421 | 25.7 | |||||||||||||||
Interest expense |
(326 | ) | (0.1 | ) | (361 | ) | (0.1 | ) | 35 | | |||||||||||
Foreign currency transaction gains, net |
399 | 0.1 | 1,253 | 0.5 | (854 | ) | (68.2 | ) | |||||||||||||
Equity in earnings of affiliates and unconsolidated subsidiaries |
127 | 0.0 | 733 | 0.3 | (606 | ) | (82.7 | ) | |||||||||||||
Other, net |
1,055 | 0.4 | 384 | 0.1 | 671 | 174.7 | |||||||||||||||
Total other income or expenses |
3,311 | 1.1 | 3,644 | 1.4 | (333 | ) | (9.1 | ) | |||||||||||||
Income before income taxes and minority interests |
38,062 | 13.0 | 16,442 | 6.5 | 21,620 | 131.5 | |||||||||||||||
Income taxes |
15,107 | 5.2 | 6,294 | 2.5 | 8,813 | 140.0 | |||||||||||||||
Income before minority interests |
22,955 | 7.8 | 10,148 | 4.0 | 12,807 | 126.2 | |||||||||||||||
Minority interests |
(973 | ) | (0.3 | ) | 582 | 0.2 | (1,555 | ) | | ||||||||||||
Net income |
¥ | 21,982 | 7.5 | ¥ | 10,730 | 4.2 | ¥ | 11,252 | 104.9 | ||||||||||||
Earnings per share: |
|||||||||||||||||||||
Net income: |
|||||||||||||||||||||
Basic |
¥ | 117.25 | ¥ | 58.01 | |||||||||||||||||
Diluted |
¥ | 117.17 | ¥ | 58.01 | |||||||||||||||||
Weighted average number of shares of common stock outstanding (shares in thousands) : |
|||||||||||||||||||||
Basic |
187,491 | 184,963 | |||||||||||||||||||
Diluted |
187,612 | 184,963 |
- 14 -
Notes:
1. | Kyocera applies the Statement of Financial Accounting Standards (SFAS) No.130, Financial Reporting of Comprehensive Income. Based on this standard, comprehensive income for the three months ended June 30, 2004 and 2003 was an increase of 38,183 million yen and an increase of 55,984 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. |
- 15 -
CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY
Yen in millions and shares in thousands | ||||||||||||||||||||||
(Number of shares of common stock) |
Common stock |
Additional paid-in capital |
Retained earnings |
Accumulated other comprehensive income |
Treasury stock, at cost |
Comprehensive income | ||||||||||||||||
Balance, March 31, 2003 (184,964) |
¥ | 115,703 | ¥ | 167,675 | ¥ | 828,350 | ¥ | (56,194 | ) | ¥ | (52,034 | ) | ||||||||||
Net income for the year |
68,086 | ¥ | 68,086 | |||||||||||||||||||
Other comprehensive income |
78,240 | 78,240 | ||||||||||||||||||||
Total comprehensive income for the year |
¥ | 146,326 | ||||||||||||||||||||
Cash dividends |
(11,174 | ) | ||||||||||||||||||||
Purchase of treasury stock (14) |
(105 | ) | ||||||||||||||||||||
Reissuance of treasury stock (5) |
4 | 44 | ||||||||||||||||||||
Allocation of treasury stock for share exchange (2,529) |
(5,607 | ) | 20,739 | |||||||||||||||||||
Stock option plan of a subsidiary |
19 | |||||||||||||||||||||
Balance, March 31, 2004 (187,484) |
115,703 | 162,091 | 885,262 | 22,046 | (31,356 | ) | ||||||||||||||||
(Unaudited) |
||||||||||||||||||||||
Net income for the period |
21,982 | ¥ | 21,982 | |||||||||||||||||||
Other comprehensive income |
16,201 | 16,201 | ||||||||||||||||||||
Total comprehensive income for the period |
¥ | 38,183 | ||||||||||||||||||||
Cash dividends |
(5,624 | ) | ||||||||||||||||||||
Purchase of treasury stock (4) |
(34 | ) | ||||||||||||||||||||
Reissuance of treasury stock (13) |
(3 | ) | 105 | |||||||||||||||||||
Balance, June 30, 2004 (187,493) |
¥ | 115,703 | ¥ | 162,088 | ¥ | 901,620 | ¥ | 38,247 | ¥ | (31,285 | ) | |||||||||||
Yen in millions and shares in thousands | |||||||||||||||||||||
(Number of shares of common stock) |
Common stock |
Additional paid-in capital |
Retained earnings |
Accumulated other comprehensive income |
Treasury stock, at cost |
Comprehensive income | |||||||||||||||
Balance, March 31, 2003 (184,964) |
¥ | 115,703 | ¥ | 167,675 | ¥ | 828,350 | ¥ | (56,194 | ) | ¥ | (52,034 | ) | |||||||||
(Unaudited) |
|||||||||||||||||||||
Net income for the period |
10,730 | ¥ | 10,730 | ||||||||||||||||||
Other comprehensive income |
45,254 | 45,254 | |||||||||||||||||||
Total comprehensive income for the period |
¥ | 55,984 | |||||||||||||||||||
Cash dividends |
(5,549 | ) | |||||||||||||||||||
Purchase of treasury stock (2) |
(13 | ) | |||||||||||||||||||
Balance, June 30, 2003 (184,962) |
¥ | 115,703 | ¥ | 167,675 | ¥ | 833,531 | ¥ | (10,940 | ) | ¥ | (52,047 | ) | |||||||||
- 16 -
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
Yen in millions |
||||||||
Three months ended June 30, |
||||||||
2004 |
2003 |
|||||||
Cash flows from operating activities: |
||||||||
Net income |
¥ | 21,982 | ¥ | 10,730 | ||||
Adjustments to reconcile net income to net cash provided by operating activities : |
||||||||
Depreciation and amortization |
15,244 | 16,086 | ||||||
Losses on inventories |
2,637 | 1,216 | ||||||
Foreign currency adjustments |
(260 | ) | (1,230 | ) | ||||
Decrease in receivables |
16,064 | 6,900 | ||||||
Increase in inventories |
(24,753 | ) | (9,221 | ) | ||||
Increase in other current assets |
(1,692 | ) | (2,495 | ) | ||||
Decrease in notes and accounts payable |
(7,220 | ) | (7,141 | ) | ||||
Other, net |
4,810 | (7,926 | ) | |||||
Net cash provided by operating activities |
26,812 | 6,919 | ||||||
Cash flows from investing activities : |
||||||||
Payments for purchases of securities |
(51,255 | ) | (13,408 | ) | ||||
Payments for purchases of investments and advances |
(173 | ) | (86 | ) | ||||
Sales and maturities of securities |
10,610 | 30,240 | ||||||
Payments for purchases of property, plant and equipment, and intangible assets |
(15,559 | ) | (12,148 | ) | ||||
Proceeds from sales of property, plant and equipment, and intangible assets |
1,102 | 569 | ||||||
Acquisitions of businesses, net of cash acquired |
| 45 | ||||||
Negotiable Certificate of Deposits |
(59,000 | ) | | |||||
Restricted cash |
| (1,994 | ) | |||||
Other, net |
64 | (377 | ) | |||||
Net cash (used in) provided by investing activities |
(114,211 | ) | 2,841 | |||||
Cash flows from financing activities : |
||||||||
Increase in short-term debt |
20,617 | 3,499 | ||||||
Proceeds from issuance of long-term debt |
3,418 | 463 | ||||||
Payments of long-term debt |
(26,049 | ) | (8,506 | ) | ||||
Dividends paid |
(5,736 | ) | (5,363 | ) | ||||
Net purchases of treasury stock |
67 | (14 | ) | |||||
Other, net |
107 | 530 | ||||||
Net cash used in financing activities |
(7,576 | ) | (9,391 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents |
1,644 | 953 | ||||||
Net (decrease) increase in cash and cash equivalents |
(93,331 | ) | 1,322 | |||||
Cash and cash equivalents at beginning of period |
361,132 | 298,310 | ||||||
Cash and cash equivalents at end of period |
¥ | 267,801 | ¥ | 299,632 | ||||
- 17 -
SEGMENT INFORMATION (Unaudited)
1. Operating segments :
Yen in millions |
|||||||||||||||
Three months ended June 30, |
Increase (Decrease) |
||||||||||||||
2004 |
2003 |
||||||||||||||
Amount |
Amount |
Amount |
% |
||||||||||||
Net sales : |
|||||||||||||||
Fine Ceramics Group |
¥ | 72,591 | ¥ | 56,664 | ¥ | 15,927 | 28.1 | ||||||||
Electronic Device Group |
70,068 | 55,835 | 14,233 | 25.5 | |||||||||||
Equipment Group |
130,321 | 122,650 | 7,671 | 6.3 | |||||||||||
Others |
25,926 | 21,156 | 4,770 | 22.5 | |||||||||||
Adjustments and eliminations |
(5,763 | ) | (3,179 | ) | (2,584 | ) | | ||||||||
¥ | 293,143 | ¥ | 253,126 | ¥ | 40,017 | 15.8 | |||||||||
Operating profit : |
|||||||||||||||
Fine Ceramics Group |
¥ | 11,591 | ¥ | 4,681 | ¥ | 6,910 | 147.6 | ||||||||
Electronic Device Group |
11,528 | 1,309 | 10,219 | 780.7 | |||||||||||
Equipment Group |
7,904 | 7,350 | 554 | 7.5 | |||||||||||
Others |
2,888 | 1,545 | 1,343 | 86.9 | |||||||||||
33,911 | 14,885 | 19,026 | 127.8 | ||||||||||||
Corporate |
4,031 | 764 | 3,267 | 427.6 | |||||||||||
Equity in earnings of affiliates and unconsolidated subsidiaries |
127 | 733 | (606 | ) | (82.7 | ) | |||||||||
Adjustments and eliminations |
(7 | ) | 60 | (67 | ) | | |||||||||
Income before income taxes |
¥ | 38,062 | ¥ | 16,442 | ¥ | 21,620 | 131.5 | ||||||||
Depreciation and amortization : |
|||||||||||||||
Fine Ceramics Group |
¥ | 3,882 | ¥ | 3,744 | ¥ | 138 | 3.7 | ||||||||
Electronic Device Group |
5,030 | 5,575 | (545 | ) | (9.8 | ) | |||||||||
Equipment Group |
4,410 | 4,924 | (514 | ) | (10.4 | ) | |||||||||
Others |
1,312 | 1,240 | 72 | 5.8 | |||||||||||
Corporate |
610 | 603 | 7 | 1.2 | |||||||||||
Total |
¥ | 15,244 | ¥ | 16,086 | ¥ | (842 | ) | (5.2 | ) | ||||||
Capital expenditures : |
|||||||||||||||
Fine Ceramics Group |
¥ | 3,208 | ¥ | 2,808 | ¥ | 400 | 14.2 | ||||||||
Electronic Device Group |
4,422 | 5,504 | (1,082 | ) | (19.7 | ) | |||||||||
Equipment Group |
3,390 | 4,891 | (1,501 | ) | (30.7 | ) | |||||||||
Others |
374 | 278 | 96 | 34.5 | |||||||||||
Corporate |
417 | 666 | (249 | ) | (37.4 | ) | |||||||||
Total |
¥ | 11,811 | ¥ | 14,147 | ¥ | (2,336 | ) | (16.5 | ) | ||||||
- 18 -
2. Geographic segments (Sales and operating profit by geographic area) :
Yen in millions |
|||||||||||||||
Three months ended June 30, |
Increase (Decrease) |
||||||||||||||
2004 |
2003 |
||||||||||||||
Amount |
Amount |
Amount |
% |
||||||||||||
Net sales: |
|||||||||||||||
Japan |
¥ | 120,890 | ¥ | 114,719 | ¥ | 6,171 | 5.4 | ||||||||
Intra-group sales and transfer between geographic areas |
82,052 | 62,000 | 20,052 | 32.3 | |||||||||||
202,942 | 176,719 | 26,223 | 14.8 | ||||||||||||
United States of America |
86,418 | 67,020 | 19,398 | 28.9 | |||||||||||
Intra-group sales and transfer between geographic areas |
6,340 | 6,377 | (37 | ) | (0.6 | ) | |||||||||
92,758 | 73,397 | 19,361 | 26.4 | ||||||||||||
Asia |
39,057 | 29,252 | 9,805 | 33.5 | |||||||||||
Intra-group sales and transfer between geographic areas |
30,603 | 23,068 | 7,535 | 32.7 | |||||||||||
69,660 | 52,320 | 17,340 | 33.1 | ||||||||||||
Europe |
42,232 | 37,621 | 4,611 | 12.3 | |||||||||||
Intra-group sales and transfer between geographic areas |
8,818 | 7,729 | 1,089 | 14.1 | |||||||||||
51,050 | 45,350 | 5,700 | 12.6 | ||||||||||||
Others |
4,546 | 4,514 | 32 | 0.7 | |||||||||||
Intra-group sales and transfer between geographic areas |
2,239 | 1,593 | 646 | 40.6 | |||||||||||
6,785 | 6,107 | 678 | 11.1 | ||||||||||||
Adjustments and eliminations |
(130,052 | ) | (100,767 | ) | (29,285 | ) | | ||||||||
¥ | 293,143 | ¥ | 253,126 | ¥ | 40,017 | 15.8 | |||||||||
Operating profit: |
|||||||||||||||
Japan |
¥ | 27,078 | ¥ | 19,121 | ¥ | 7,957 | 41.6 | ||||||||
United States of America |
5,643 | (1,797 | ) | 7,440 | | ||||||||||
Asia |
4,787 | 917 | 3,870 | 422.0 | |||||||||||
Europe |
139 | (1,999 | ) | 2,138 | | ||||||||||
Others |
452 | 176 | 276 | 156.8 | |||||||||||
38,099 | 16,418 | 21,681 | 132.1 | ||||||||||||
Adjustments and eliminations |
(4,195 | ) | (1,473 | ) | (2,722 | ) | | ||||||||
33,904 | 14,945 | 18,959 | 126.9 | ||||||||||||
Corporate |
4,031 | 764 | 3,267 | 427.6 | |||||||||||
Equity in earnings of affiliates and unconsolidated subsidiaries |
127 | 733 | (606 | ) | (82.7 | ) | |||||||||
Income before income taxes |
¥ | 38,062 | ¥ | 16,442 | ¥ | 21,620 | 131.5 | ||||||||
- 19 -
3. Geographic segments (Sales by region) :
Yen in millions | |||||||||||||||||
Three months ended June 30, |
Increase (Decrease) | ||||||||||||||||
2004 |
2003 |
||||||||||||||||
Amount |
% |
Amount |
% |
Amount |
% | ||||||||||||
Japan |
¥ | 101,602 | 34.7 | ¥ | 98,854 | 39.1 | ¥ | 2,748 | 2.8 | ||||||||
United States of America |
67,266 | 22.9 | 59,000 | 23.3 | 8,266 | 14.0 | |||||||||||
Asia |
59,011 | 20.1 | 45,729 | 18.0 | 13,282 | 29.0 | |||||||||||
Europe |
41,244 | 14.1 | 36,972 | 14.6 | 4,272 | 11.6 | |||||||||||
Others |
24,020 | 8.2 | 12,571 | 5.0 | 11,449 | 91.1 | |||||||||||
Net sales |
¥ | 293,143 | 100.0 | ¥ | 253,126 | 100.0 | ¥ | 40,017 | 15.8 | ||||||||
Sales outside Japan |
¥ | 191,541 | ¥ | 154,272 | ¥ | 37,269 | 24.2 | ||||||||||
Sales outside Japan ratio to net sales |
65.3 | % | 60.9 | % |
- 20 -
Name of Company listed: |
Kyocera Corporation | |
Name of Representative: |
Yasuo Nishiguchi, President and Director | |
(Code number: 6971, | ||
The First Section of the Tokyo Stock Exchange, | ||
The First Section of the Osaka Securities Exchange) | ||
Person for inquiry: |
Hideki Ishida | |
Managing Executive Officer | ||
(Tel: 075-604-3500) |
Re: Consolidated Financial Results
for the Three Months Ended June 30, 2004 (Information purposes only)
As set forth in the earnings digest relating to the fiscal year ended March, 31, 2004 (described in Form 6-K filed on April, 27, 2004), with effect from the fiscal year ending March, 31, 2005, Kyocera has been publicly announcing financial forecasts for full fiscal years only.
The consolidated income before income taxes and net income for the three months ended June 30, 2004 as announced today have already exceeded the consolidated income before income taxes and net income for the six months ended September 30, 2003 by 51.5% and 39.5%, respectively. Accordingly, Kyocera hereby announces them for Timely Disclosure.
Kyocera does not revise the consolidated financial forecast for the fiscal year ending March 31, 2005, which was described in Form 6-K filed on April 27, 2004 as follows:
Financial forecast for the fiscal year ending March 31, 2005 (yen in millions) |
Increase or decrease (%) compared with the fiscal year ended March 31, 2004 | |||
Net Sales |
1,260,000 | 10.4 | ||
Income before Income Taxes |
140,000 | 21.7 | ||
Net Income |
85,000 | 24.8 |
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 components; the extent and pace of future growth or contraction in information technology-related markets around the world, including those for communications and personal computers; and events that may impact negatively on our markets or supply chain, including terrorist acts and outbreaks of diseases such as SARS. 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.