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During FY24 1Q-3Q, global economic growth remained slow due to growing uncertainty worldwide regarding the geopolitical situation as well as monetary tightening in Europe and the United States, etc. In addition, market condition remained sluggish in semiconductor-related markets as well as information and communications-related markets, which are our principal markets.
Sales revenue for FY24 1Q-3Q decreased by 2.2%, as compared with the nine months ended December 31, 2022 ("FY23 1Q-3Q"), due mainly to a decrease in demand for our principal products in the Core Components Business and the Electronic Components Business as a result of sluggish condition in our principal markets, which more than offset an increase in sales in the Solutions Business.
Profit decreased, due mainly to lower utilization ratio of production facilities caused by a decrease in orders while Kyocera continues to invest in anticipation of demand growth, as well as an increase in labor costs and research and development expenses. Operating profit decreased by 29.9%, profit before income taxes decreased by 22.8%, and profit attributable to owners of the parent decreased by 23.9% respectively, as compared with FY23 1Q-3Q.
[Released on February 1, 2024]
Financial results for the nine months came in below our expectations due to the global economic slowdown and the slower recovery of our principal markets, namely the semiconductor-related markets and information and communications-related markets, as compared with our expectations. Kyocera anticipates that severe condition in our principal markets will continue during the three months ending March 31, 2024 ("FY24 4Q").
In light of this business outlook, Kyocera has revised its consolidated financial forecasts for FY24 as set forth below.
