(RTTNews) - Telecommunications equipment company Kyocera Corporation (KYO: News ) Friday reported a sharp decline in net profit for the first half of fiscal 2010, hurt mainly by a 26.5% decrease in net sales reflecting lower demand. The company left its fiscal 2010 sales and profit guidance unchanged from that announced in April.

For the first-half period, net income attributable to shareholders was down 80.7% to JPY8.73 billion, or US$92 million, from JPY45.25 billion in the prior-year period. On a per share basis, earnings were JPY47.56 compared to JPY238.52 last year.

Net sales for the period plunged to JPY483.90 billion, or US$5.09 billion, from JPY658.72 billion in the first half of fiscal 2009.

Kyocera said its revenues and profit were also reduced by appreciation of yen against Euro and US dollar. Average exchange rate for the six-month period was JPY95 to the US dollar, and JPY133 to Euro. As a result, net sales was down by nearly US$474 million or JPY45.0 billion, the company stated.

On a segmental basis, sales from components business slumped 28.7% to US$2.58 billion or JPY245.08 billion, sales from equipment business fell 26.9% to US$2.01 billion or JPY190.90 billion, and sales from other segment slipped 12.8% to US$609 million or JPY57.83 billion in the first six months of fiscal 2010.

The Kyoto, Japan-based company said solar energy business outside Japan continued to face tougher than anticipated pricing conditions, while digital consumer equipment production levels recovered beyond initial projections, and demand for components mainly in semiconductor parts group expanded steadily.
Kyocera noted that demand for components used in digital consumer equipment remained below the year-ago period. Mobile phone handsets' sales remained low in Japan and the US, and information equipment sales decreased, mainly due to curtailed information technology investment, added the company.

Looking ahead, for the three months ending December 31, 2009, Kyocera expects demand for components used in digital consumer equipment to remain unclear outside of Japan. Consequently, the company has made no changes to its sales and profit guidance for fiscal 2010 that was announced in April 2009.

For fiscal year 2010, Kyocera continues to expect earnings of JPY34 billion or JPY185.26 per share, and net sales of JPY1.04 trillion. The company expects average exchange rate for fiscal 2010 to be JPY92 to the US dollar, and JPY129 to Euro.

KYO closed Wednesday's regular trading session at $85.45 per share on the New York Stock Exchange.

To receive FREE breaking news email alerts for Kyocera Corp. and others in your portfolio

by RTT Staff Writer

For comments and feedback: contact editorial@rttnews.com