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During FY25 1H, the global economy grew moderately, partly due to lower inflation rates in various countries. In our principal markets, comprised of the semiconductor-related markets and the information and communication-related markets, demand increased mainly for AI-related products, but the markets as a whole did not achieve a full-fledged recovery.
Sales revenue for FY25 1H increased by 1.3%, as compared with the six months ended September 30, 2023 ("FY24 1H"), as sales revenue of the Electronic Components Business and the Solutions Business increased partly due to the impact of a weaker yen, while sales revenue of the Core Components Business remained flat.
Profit decreased due mainly to a lower utilization ratio of production facilities caused by sluggish orders for components and an increase in labor and other costs. By reporting segment, profits of the Solutions Business increased due mainly to the impact of a weaker yen, while profits of the Core Components Business and the Electronic Components Business decreased due to the significant decline in demand from the Organic Packages and Boards Business and Kyocera AVX Components Corporation Group ("KAVX"). As a result, operating profit decreased by 29.9%, profit before income taxes decreased by 33.5%, and profit attributable to owners of the parent decreased by 36.1% respectively, as compared with FY24 1H.
[Released on October 30, 2024]
During FY25 1H, the trend in demand for the Organic Packages Business and for KAVX were lower than our initial projections. Kyocera now anticipates that recovery in demand for these two businesses will not take place soon after the three months ending December 31, 2024 (FY25 3Q). In light of this business outlook, Kyocera has revised its consolidated financial forecast for FY25 as set forth below.
