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In the first quarter of fiscal year 2015 (1QFY15) ended on June 30, 2014, Kyocera Corporation faced a yearly drop due to slow or no growth in certain key segments and markets. The slower Japanese solar energy market was one of the causes.
Kyocera Corporation mostly relies on digital consumer equipment, fine ceramic parts and solar PV products. Compared with the three months ended June 30, 2013 (1QFY14), Q1 brought essentially no growth in the mobile phone market globally as rising demand for smartphones was offset by contracting demand for conventional handsets. Additionally, growth in Japan's solar energy market slowed due mainly to the completion of government subsidies for residential solar power generating systems, and to the impact of higher consumption tax. Conversely, global sales of automobiles increased steadily, particularly in China and the United States.
In 1QFY15, Kyocera reached its highest first-quarter consolidated revenue by rising sales in the Information Equipment and Fine Ceramic Parts segments. Semiconductor Parts segment’s sales also rose due to revenue from a new subsidiary acquired in the prior fiscal year. In contrast, Q1FY15 sales decreased in the Applied Ceramic Products segment and the Electronic Device segment. Consolidated Q1 profit declined due to lower profitability in the Applied Ceramic Products, Semiconductor Parts, and Telecommunications Equipment segments, which offset increased profit in the Information Equipment and Electronic Device segments.
In summary, consolidated net sales increased 0.9% over 1QFY14, to JPY 334,714 yen (US$3,314) million; profit from operations decreased 26.0%, to JPY 18,782 (US$186) million; income before income taxes decreased 11.9%, to JPY 30,680 (US$304) million; and net income attributable to shareholders of Kyocera Corporation decreased 14.1%, to JPY19,467 (US$193) million.