KYOCERA Announces Consolidated Financial Results for Six Months Ended September 30, 2012

KYOTO, Japan--(BUSINESS WIRE)--Kyocera Corporation (NYSE:KYO)(TOKYO:6971) today announced consolidated financial results for the first half of fiscal year 2013 ("first half" or "FY13-H1," covering the six months ended September 30, 2012), as summarized below. Details are available at: http://global.kyocera.com/ir/financial/f_results.html

“This led to increased sales and profit compared to the first quarter, and with a pretax profit ratio of 10%, we have bounced back to double-digit margins.”

Consolidated Financial Highlights: First Half
Unit: Millions (except percentages and per-share amounts)
	Six Months Ended September 30
	2011 (FY12-H1) in JPY	2012 (FY13-H1) in JPY	Increase (Decrease)		2012 (FY13-H1) in USD	2012 (FY13-H1) in EUR
			Amount in JPY	%
Net sales:	604,268	608,431	4,163	0.7	7,800	6,084
Profit from operations:	67,763	25,891	(41,872)	(61.8)	332	259
Income before income taxes:	75,565	35,732	(39,833)	(52.7)	458	357
Net income attributable to shareholders of Kyocera Corporation:	46,768	25,371	(21,397)	(45.8)	325	254
Diluted earnings per share attributable to shareholders of Kyocera Corporation:	254.93	138.31	-	-	1.77	1.38
Note: As a convenience to the reader, U.S. dollar (USD) and euro (EUR) conversions are provided at the rates of USD1 = JPY78 and EUR1 = JPY100, rounded to the nearest unit.

Summary

In comparison with the prior first half ("FY12-H1"), this first half was characterized by the impact of the yen's appreciation; sluggish growth in demand for components used in industrial equipment and digital consumer electronics; a decrease in sales of solar energy products outside of Japan; and an overall decrease in sales of telecommunications equipment. Nonetheless, newly added revenue from LCD manufacturer Optrex Corporation (now Kyocera Display Corporation) led to increased consolidated net sales as compared to FY12-H1^*1. Profit decreased compared with the previous first half, primarily due to a JPY21,300 (USD266) million charge^*2 recorded at AVX Corporation, a U.S.-based subsidiary, for environmental remediation in New Bedford Harbor, Massachusetts (U.S.A.), and to the general impact of the yen's appreciation.

As a result, compared to FY12-H1, consolidated net sales increased 0.7%, to JPY608,431 (USD7,800) million; profit from operations decreased 61.8%, to JPY25,891 (USD332) million; income before income taxes decreased 52.7%, to JPY35,732 (USD458) million; and net income attributable to shareholders of Kyocera Corporation decreased 45.8%, to JPY25,371 (USD325) million.

Consolidated Financial Highlights: Second Quarter Comparisons
Unit: Millions (except percentages)
Against FY12-Q2	Three Months Ended September 30
	2011 (FY12-Q2) in JPY	2012 (FY13-Q2) in JPY	Increase (Decrease)		2012 (FY13-Q2) in USD	2012 (FY13-Q2) in EUR
			Amount in JPY	%
Net sales:	299,037	310,705	11,668	3.9	3,983	3,107
Profit from operations:	34,450	27,893	(6,557)	(19.0)	358	279
Income before income taxes:	35,643	31,005	(4,638)	(13.0)	398	310
Net income attributable to shareholders of Kyocera Corporation:	21,964	18,801	(3,163)	(14.4)	241	188

Against FY13-Q1	Three Months Ended
	June 30, 2012 (FY13-Q1) in JPY	September 30, 2012 (FY13-Q2) in JPY	Increase (Decrease)		2012 (FY13-Q2) in USD	2012 (FY13-Q2) in EUR
			Amount in JPY	%
Net sales:	297,726	310,705	12,979	4.4	3,983	3,107
Profit from operations:	-2,002	27,893	29,895	-	358	279
Income before income taxes:	4,727	31,005	26,278	555.9	398	310
Net income attributable to shareholders of Kyocera Corporation:	6,570	18,801	12,231	186.2	241	188
Note: As a convenience to the reader, U.S. dollar (USD) and euro (EUR) conversions are provided at the rates of USD1 = JPY78 and EUR1 = JPY100, rounded to the nearest unit.

"In the second quarter, we saw increased demand for components used in digital consumer electronics, in particular for smartphones, as well as expanded sales in our solar energy business in the Japanese market," stated Kyocera Corporation president, Tetsuo Kuba. "This led to increased sales and profit compared to the first quarter, and with a pretax profit ratio of 10%, we have bounced back to double-digit margins."

Consolidated Financial Forecasts: Year Ending March 31, 2013

From the third quarter (October 1 to December 31, 2012) onward, Kyocera expects an expansion in the Japanese domestic solar energy market; however, Kyocera also anticipates heightened uncertainty in the Chinese market and prolonged stagnation in the European economy. Based on these expectations, Kyocera has revised its consolidated financial and average exchange rate forecasts for the second half from projections announced in August 2012, as shown below.

"Under difficult business circumstances we have had to lower our forecasts for the fiscal year, but we still expect to achieve 10.8% growth in sales compared to the previous fiscal year, which will represent our highest annual sales to date," explained President Kuba.

Kyocera will strive to improve performance by increasing sales, taking advantage of business opportunities in the growing solar energy market in Japan and by aggressively introducing new products such as smartphones.

	Unit: Yen in millions (except percentages and exchange rates)
		Fiscal 2013 Forecasts Announced on		Increase (Decrease) (%) to Fiscal 2012 Results
	Fiscal 2012 Results	August 1, 2012	October 31, 2012
Net sales:	1,190,870	1,370,000	1,320,000	10.8
Profit from operations:	97,675	118,700	100,000	2.4
Income before income taxes:	114,893	129,900	115,000	0.1
Net income attributable to shareholders of Kyocera Corporation:	79,357	86,400	75,000	(5.5)
Average USD exchange rate:	79	79	79	-
Average EUR exchange rate:	109	97	101	-

^*1 Optrex Corporation became a consolidated subsidiary of Kyocera Corporation in February 2012.
^*2 The charge was converted into yen using the P&L rate of USD1 = JPY80, the average exchange rate in FY13-Q1, rounded to the nearest unit, according to the actual amount recorded in Kyocera's FY13-Q1 consolidated results.

FORWARD-LOOKING STATEMENTS

Except for historical information contained herein, the matters set forth in this press release are forward-looking statements that involve risks and uncertainties including, but not limited to, product demand, competition, regulatory approvals, the effect of economic conditions and technological difficulties, and other risks detailed in the Company's filings with the U.S. Securities and Exchange Commission.

About KYOCERA

Kyocera Corporation (NYSE:KYO)(TOKYO:6971) (http://global.kyocera.com/), the parent and global headquarters of the Kyocera Group, was founded in 1959 as a producer of fine ceramics (also known as "advanced ceramics"). By combining these engineered materials with metals and plastics, and integrating them with other technologies, Kyocera has become a leading supplier of solar power generating systems, telecommunications equipment, printers, copiers, electronic components, semiconductor packages, cutting tools and industrial ceramics. During the year ended March 31, 2012, the company's net sales totaled 1.19 trillion yen (approx. USD14.5 billion). The company is ranked #426 on Forbes magazine's 2012 "Global 2000" listing of the world's largest publicly traded companies.