Financial Results Fiscal Year 2004/2005

24 May 2005

With consolidated net sales of 1.18 trillion Yen (about 8.49 billion Euro) Kyocera Corporation has finalized their Fiscal Year 2005 (April 2004 - March 2005).

The Japanese technology company could exceed its last fiscal year's results by 3.5 percent. Net income of 46 billion Yen (about 330 Million Euro) was 32.6 percent below the results of last fiscal year.

Among others, structural reforms in the business areas of telecommunications and optical instruments cost 11.7 billion Yen (84.2 Million Euro), which are responsible for this decreased profit. Profit from operations declined by 7.3 percent to about 101 billion Yen (about 726 Million Euro). Income before income tax decreased by about 6.5 percent (108 billion Yen, 774 Million Euro) compared with the previous fiscal year.

A strong sales increase mainly in the business areas of Fine Ceramics Group led to an extraordinary large demand for solar modules and solar power systems mainly in Europe and Japan. Fine ceramics components for semiconductors and LCD fabrication equipment enjoyed a strong demand. Electronic Device Group also ended with sales increase, being contributed by the sales from Kyocera Kinseki Corporation, a company’s wholly-owned subsidiary. In addition, demand for thermal printheads used in digital photo printers and LCD's for mobile phones and also industrial equipment increased, which resulted in increased sales. Operating profit of the product divisions - semiconductor parts, solar power systems and cutting tools increased drastically. With regard to electronic components, it also enjoyed increased profit, due to the positive effects of structural reforms and to the absence of restructuring costs at AVX Corporation, a US subsidiary recorded in fiscal year 2004.

In the Equipment Group, sales of medium and high speed digital multifunctional information equipment products (copiers and printers) increased. The sales of optical instruments increased due to strong demand for optical camera modules, which could balance out a substantial decrease in the sales of digital cameras caused by structural reforms. Sales of telecommunication equipment decreased due to intensive price competition for mobile phones in and out of Japan. In total sales of the equipment group decreased compared with the previous fiscal year.In European market, total sales increased, as the sales of information equipment and solar systems dramatically increased.

Outlook for the new fiscal year:
Kyocera expects a gradual recovery in the production of the electronic industry in the first half of FY2006 and a stronger recovery in the second half of FY2006 and also expects a global increase for alternative energies - mainly for solar energy.


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