Kyocera Result 01/08/2017

Kyocera announced the FY18 Q1 result with revenues of ¥345.2 billion ($3.1 billion) and net profit of ¥34.9 billion ($312 million), with a net margin of around 10%. Revenues increased by 7.9% on a yearly basis while the net profit simply doubled.

Revenue from sales of Industrial & Automotive Components, Semiconductor Components and Electronic Devices increased during FY7 Q1 due to rising demand from producers of automobiles, communications infrastructure equipment and smartphones. Revenue from Document Solutions expanded as well following the launch of new products and sales promotion activities. The profitability situation improved significantly due to stronger sales and continued cost reduction efforts.

Analyst Comment

This report made me smile. Many (,many) years ago I was talking to a fellow CEO about the challenges I found in setting good targets. Too low and it didn’t stretch the team enough, too high and it could de-motivate if it was seen as too tricky. He said, “I have no trouble with targets”. Then a pause.

“My staff on the other hand, have a lot of trouble with them. Simply ‘double’. That’s it. Simply ‘Double’. “, he continued. He was very successful and later sold his company and became very rich! (BR)