Edgar Filing: KYOCERA CORP

Form 6-K

FORM 6-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16 under

the Securities Exchange Act of 1934

For the month of January 2012

Commission File Number: 1-07952

KYOCERA CORPORATION

6 Takeda Tobadono-cho, Fushimi-ku,

Kyoto 612-8501, Japan

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

Form 20-F x Form 40-F ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Registration S-T Rule 101(b)(1): ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Registration S-T Rule 101(b)(7): ¨

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereto duly authorized.

KYOCERA CORPORATION

/s/ SHOICHI AOKI

Shoichi Aoki

Director,

Managing Executive Officer and

General Manager of

Corporate Financial and Business Systems

Administration Group

Date: January 30, 2012

Information furnished on this form:

EXHIBITS


Exhibit Number
1.		Consolidated Financial Results of Kyocera Corporation and its Subsidiaries for the Nine Months Ended December 31, 2011

2.		Revision of Financial Forecast for the Fiscal Year Ending March 31, 2012

LOGO

Consolidated Financial Results of Kyocera Corporation and its Subsidiaries

for the Nine Months Ended December 31, 2011

The consolidated financial information is prepared in accordance with accounting principles generally accepted in the United States of America.

1. Consolidated Financial Results for the Nine Months Ended December 31, 2011


(1) Consolidated results of operations							(% of change from previous period)
	Net sales					Profit from operations					Income before income taxes					Net income attributable to shareholders of Kyocera Corporation
	Million yen		%			Million yen		%			Million yen		%			Million yen		%
Nine Months ended December 31, 2011		885,389		(7.5	)		88,373		(26.2	)		102,604		(22.9	)		72,110		(23.1	)
Nine Months ended December 31, 2010		956,914		24.4			119,769		215.1			133,136		306.7			93,717		407.1

(Note) Comprehensive income:

37,225 million yen for the nine months ended December 31, 2011, (18.0)% of change from previous period

45,420 million yen for the nine months ended December 31, 2010, 116.6% of change from previous period


	Net income attributable to shareholders of Kyocera Corporation per share -Basic		Net income attributable to shareholders of Kyocera Corporation per share -Diluted
	Yen		Yen
Nine Months ended December 31, 2011		393.07		393.07
Nine Months ended December 31, 2010		510.67		510.67

(2) Consolidated financial condition


	Total assets		Total equity		Kyocera Corporation shareholders’ equity		Kyocera Corporation shareholders’ equity to total assets
	Million yen		Million yen		Million yen		%
December 31, 2011		1,900,106		1,494,381		1,431,721		75.3
March 31, 2011		1,946,566		1,483,359		1,420,263		73.0

2. Dividends


	Dividends per share
	End of first quarter		End of second quarter		End of third quarter		Year-end		Annual
	Yen		Yen		Yen		Yen		Yen
Year ended March 31, 2011		—		60.00		—		70.00		130.00
Year ending March 31, 2012		—		60.00		—		60.00		120.00

(Note)

Year-end dividend per share for the year ending March 31, 2012 is the forecast at date of disclosure of this report.

3. Consolidated Financial Forecast for the Year Ending March 31, 2012

(% of change from previous year)


	Net sales					Profit from operations					Income before income taxes					Net income attributable to shareholders of Kyocera Corporation					Net income attributable to shareholders of Kyocera Corporation per share
	Million yen		%			Million yen		%			Million yen		%			Million yen		%			Yen
Year ending March 31, 2012		1,180,000		(6.9	)		100,000		(35.9	)		113,000		(34.4	)		78,000		(36.3	)		425.18

(Note)

Forecast of earnings per share attributable to shareholders of Kyocera Corporation is computed based on the diluted average number of shares outstanding during the nine months ended December 31, 2011.

4. Others

(1) Increase or decrease in significant subsidiaries during the nine months ended December 31, 2011: None.

(2) Adoption of concise quarterly accounting method or procedure: None.

(3) Changes in accounting policies:

(i) Changes due to adoption of new accounting standards: Please refer to the accompanying “3. Other Information” on page 14.

(ii) Changes due to other than adoption of new accounting standards: None.

(4) Number of shares (common stock):

(i) Number of shares issued:


191,309,290 shares at December 31, 2011		191,309,290 shares at March 31, 2011

(ii) Number of treasury stock:


7,864,400 shares at December 31, 2011		7,796,321 shares at March 31, 2011

(iii) Average number of shares outstanding:


183,453,025 shares for the nine months ended December 31, 2011		183,518,395 shares for the nine months ended December 31, 2010

Presentation of Situation of Review Procedure

The consolidated financial information included in this report is out of scope of review procedure under the Financial Instruments and Exchange Law of Japan. Review procedure under the Financial Instruments and Exchange Law of Japan has not been completed at the date of disclosure of this report.

Instruction for Forecasts and Other Notes

Cautionary Statement for Forecasts:

With regard to forecasts set forth above, please refer to the accompanying “Forward-Looking Statements” on page 10.

Accompanying Information

1. Business Results, Financial Condition and Prospects

(1) Business Results for the Nine Months Ended December 31, 2011

Economic Situation and Business Environment

During the nine months ended December 31, 2011 (“the nine months”), the Japanese economy stagnated overall due to the continued yen’s appreciation against the Euro and the U.S. dollar and sluggish growth in exports, despite resolution of disruptions in production activities and the supply chain following the Great East Japan Earthquake. The U.S. economy continued to recover moderately due mainly to growth in private capital investment and exports, while in Europe, the business downturn became more pronounced, including decreases in personal consumption and willingness to invest as the financial crisis gradually worsened. The Chinese economy expanded primarily on the back of strong domestic demand in spite of signs of a slowdown in export growth.

In the digital consumer equipment market, which is the principal market for Kyocera Corporation and its consolidated subsidiaries (“Kyocera Group” or “Kyocera”), demand for such items as mobile phone handsets and personal computers was sluggish compared with initial projections; and in addition, component inventory adjustments at equipment manufacturers were prolonged. Furthermore, production activities for products such as digital cameras stagnated temporarily due to the impact of floods in Thailand. As a result, component demand primarily for digital consumer equipment fell below that for the nine months ended December 31, 2010 (“the previous nine months”).

Consolidated Financial Results

Average exchange rates for the nine months were ¥79 to the U.S. dollar, marking appreciation of ¥8 (approximately 9%) from ¥87 for the previous nine months, and ¥111 to the Euro, making appreciation of ¥2 (approximately 2%) from ¥113 for the previous nine months. As a result, net sales and income before income taxes for the nine months were adversely affected by approximately ¥32.5 billion and ¥7.5 billion, respectively, compared with the previous nine months.

Consolidated net sales for the nine months decreased by ¥71,525 million, or 7.5%, to ¥885,389 million, compared with ¥956,914 million in the previous nine months due to the sluggish component demand for digital consumer equipment and to a decline in sales in the Telecommunications Equipment Group in addition to the impact of the yen’s appreciation. Profit from operations for the nine months decreased by ¥31,396 million, or 26.2%, to ¥88,373 million, compared with ¥119,769 million in the previous nine months. In addition, income before income taxes decreased by ¥30,532 million, or 22.9%, to ¥102,604 million, compared with ¥133,136 million in the previous nine months. Net income attributable to shareholders of Kyocera Corporation for the nine months decreased by ¥21,607 million, or 23.1%, to ¥72,110 million, compared with ¥93,717 million in the previous nine months.


	Nine months ended December 31,								Increase (Decrease)
	2010				2011				Increase (Decrease)
	Amount		%		Amount		%		Amount			%
	(Yen in millions, except per share amounts and exchange rates)
Net sales	¥	956,914		100.0	¥	885,389		100.0	¥	(71,525	)		(7.5	)
Profit from operations		119,769		12.5		88,373		10.0		(31,396	)		(26.2	)
Income before income taxes		133,136		13.9		102,604		11.6		(30,532	)		(22.9	)
Net income attributable to shareholders of Kyocera Corporation		93,717		9.8		72,110		8.1		(21,607	)		(23.1	)
Diluted earnings per share attributable to shareholders of Kyocera Corporation		510.67		—		393.07		—		—			—
Average US$ exchange rate		87		—		79		—		—			—
Average Euro exchange rate		113		—		111		—		—			—

Consolidated Results by Reporting Segment

1) Fine Ceramic Parts Group

Sales and operating profit for the nine months increased in this reporting segment compared with the previous nine months due to an increase in demand for components used mainly in the LED-related and general industrial markets including the automobile market.

2) Semiconductor Parts Group

Sales and operating profit for the nine months in this reporting segment decreased compared with the previous nine months due to sluggish demand for components for digital consumer equipment caused mainly by customer inventory adjustments.

3) Applied Ceramic Products Group

In the cutting tool business, sales grew compared with the previous nine months particularly in the automobile market. In the solar energy business, however, there were weakening demand in Europe and a significant decline in product prices worldwide, as well as the impact of the yen’s appreciation. As a result, sales and operating profit in this reporting segment decreased compared with the previous nine months.

4) Electronic Device Group

Sales and operating profit for the nine months in this reporting segment decreased compared with the previous nine months due to sluggish demand for components used in digital consumer equipment resulting primarily from customer inventory adjustments as well as to the yen’s appreciation.

5) Telecommunications Equipment Group

Sales in this reporting segment for the nine months decreased compared with the previous nine months due mainly to sluggish sales of mobile phone handsets overseas. However, operating profit was improved in this reporting segment due to efforts to reduce manufacturing costs and to a sales contribution from smartphones in Japan.

6) Information Equipment Group

Sales in this reporting segment for the nine months increased slightly compared with the previous nine months due to the impact of the yen’s appreciation despite increased sales volume particularly in emerging countries resulting from active introduction of new products and expansion of sales networks. Operating profit increased compared with the previous nine months due to increased sales of high-value-added consumable products and to efforts to reduce manufacturing costs.

7) Others

Sales increased in this reporting segment for the nine months compared with the previous nine months due to a sales contribution from LED lighting and to growth in sales of the ICT (Information and Communication Technology) business at Kyocera Communication Systems Co., Ltd. Operating profit decreased compared with the previous nine months, however, due mainly to an increase in R&D expenses.

Net Sales by Reporting Segment


	Nine months ended December 31,												Increase (Decrease)
	2010						2011						Increase (Decrease)
	Amount			%			Amount			%			Amount			%
	(Yen in millions)
Fine Ceramic Parts Group	¥	56,251			5.9		¥	61,346			6.9		¥	5,095			9.1
Semiconductor Parts Group		132,640			13.9			117,733			13.3			(14,907	)		(11.2	)
Applied Ceramic Products Group		150,500			15.7			133,600			15.1			(16,900	)		(11.2	)
Electronic Device Group		183,840			19.2			165,360			18.7			(18,480	)		(10.1	)

Total Components Business		523,231			54.7			478,039			54.0			(45,192	)		(8.6	)
Telecommunications Equipment Group		175,768			18.4			136,568			15.4			(39,200	)		(22.3	)
Information Equipment Group		176,553			18.4			178,967			20.2			2,414			1.4

Total Equipment Business		352,321			36.8			315,535			35.6			(36,786	)		(10.4	)
Others		102,433			10.7			111,265			12.6			8,832			8.6
Adjustments and eliminations		(21,071	)		(2.2	)		(19,450	)		(2.2	)		1,621			—

Net sales	¥	956,914			100.0		¥	885,389			100.0		¥	(71,525	)		(7.5	)


Operating Profit (Loss) by Reporting Segment

	Nine months ended December 31,												Increase (Decrease)
	2010						2011						Increase (Decrease)
	Amount			%*			Amount			%*			Amount			%
	(Yen in millions)
Fine Ceramic Parts Group	¥	8,466			15.1		¥	9,618			15.7		¥	1,152			13.6
Semiconductor Parts Group		28,405			21.4			22,294			18.9			(6,111	)		(21.5	)
Applied Ceramic Products Group		23,194			15.4			7,231			5.4			(15,963	)		(68.8	)
Electronic Device Group		33,271			18.1			21,897			13.2			(11,374	)		(34.2	)

Total Components Business		93,336			17.8			61,040			12.8			(32,296	)		(34.6	)
Telecommunications Equipment Group		(954	)		—			811			0.6			1,765			—
Information Equipment Group		20,333			11.5			22,607			12.6			2,274			11.2

Total Equipment Business		19,379			5.5			23,418			7.4			4,039			20.8
Others		7,567			7.4			5,532			5.0			(2,035	)		(26.9	)

Operating profit		120,282			12.6			89,990			10.2			(30,292	)		(25.2	)
Corporate gains and Equity in earnings of affiliates and unconsolidated subsidiaries		14,246			—			13,394			—			(852	)		(6.0	)
Adjustments and eliminations		(1,392	)		—			(780	)		—			612			—

Income before income taxes	¥	133,136			13.9		¥	102,604			11.6		¥	(30,532	)		(22.9	)

*	% to net sales of each corresponding segment

Net Sales by Geographic Area

1) Japan

Sales for Japan for the nine months decreased compared with the previous nine months due to a decrease in sales in the solar energy business resulting mainly from deteriorated product prices, as well as to a decrease in sales in the Semiconductor Parts Group resulting mainly from sluggish demand for components used in digital consumer equipment.

2) Asia

Sales for Asia for the nine months decreased compared with the previous nine months due to declined sales in the Electronic Device Group and the Semiconductor Parts Group resulting from sluggish demand for components used in digital consumer equipment in addition to the yen’s appreciation.

3) Europe

Sales for Europe for the nine months decreased compared with the previous nine months due to a decrease in sales in the Applied Ceramic Products Group resulting from sluggish demand and from a significant decline in product prices in the solar energy business.

4) United States of America

Sales for the United States of America for the nine months decreased compared with the previous nine months due to a decrease in sales in the Telecommunications Equipment Group resulting from a decrease in sales volume of mobile phone handsets and to a decrease in sales in the Electronic Device Group resulting from sluggish demand for components used in digital consumer equipment, as well as to the yen’s appreciation.

5) Others

Sales for Others for the nine months decreased compared with the previous nine months due to a decrease in sales in the Telecommunications Equipment Group, as well as to a decrease in sales in the Semiconductor Parts Group resulting from sluggish demand for components used in digital consumer equipment.


	Nine months ended December 31,								Increase (Decrease)
	2010				2011				Increase (Decrease)
	Amount		%		Amount		%		Amount			%
	(Yen in millions)
Japan	¥	424,512		44.4	¥	419,364		47.4	¥	(5,148	)		(1.2	)
Asia		161,641		16.9		154,377		17.4		(7,264	)		(4.5	)
Europe		158,843		16.6		151,249		17.1		(7,594	)		(4.8	)
United States of America		166,428		17.4		118,861		13.4		(47,567	)		(28.6	)
Others		45,490		4.7		41,538		4.7		(3,952	)		(8.7	)

Net sales	¥	956,914		100.0	¥	885,389		100.0	¥	(71,525	)		(7.5	)

(2) Consolidated Financial Condition

Consolidated Cash Flows

Cash and cash equivalents at December 31, 2011 decreased by ¥19,641 million to ¥253,830 million from ¥273,471 million at March 31, 2011.

1) Cash flows from operating activities

Net cash provided by operating activities for the nine months decreased by ¥11,246 million to ¥62,214 million from ¥73,460 million for the previous nine months. This was due mainly to that a decrease in net income and a decrease in cash inflows from an increase in notes and accounts payable exceeded a decrease in cash outflows from an increase in receivables.

2) Cash flows from investing activities

Net cash used in investing activities for the nine months decreased by ¥73,597 million to ¥39,179 million from ¥112,776 million for the previous nine months. This was due mainly to that increases in proceeds from sales and maturities of available-for-sales and held-to maturity securities and an increase in withdrawals of time deposits and certificate of deposits exceeded an increase in acquisitions of businesses.

3) Cash flows from financing activities

Net cash used in financing activities for the nine months increased by ¥4,116 million to ¥33,435 million from ¥29,319 million for the previous nine months. This was due mainly to increases in payments of short-term borrowings and long-term debts as well as an increase in dividends paid.


	Nine months ended December 31,
	2010			2011
	(Yen in millions)
Cash flows from operating activities	¥	73,460		¥	62,214
Cash flows from investing activities		(112,776	)		(39,179	)
Cash flows from financing activities		(29,319	)		(33,435	)
Effect of exchange rate changes on cash and cash equivalents		(16,284	)		(9,241	)
Net decrease in cash and cash equivalents		(84,919	)		(19,641	)
Cash and cash equivalents at beginning of period		313,126			273,471
Cash and cash equivalents at end of period	¥	228,207		¥	253,830

(3) Consolidated Forecasts for the Year Ending March 31, 2012

Consolidated financial results for the third quarter (from October 1 to December 31, 2011) were sluggish, while the business environment fell short of assumptions made in October 2011. In the fourth quarter (from January 1 to March 31, 2012), there are concerns over the persistent yen’s appreciation and the global economic impact of the downturn in European financial conditions, as well as the continued impact of floods in Thailand. As a result, Kyocera forecasts that expansion of production activities and recovery in component demand in principal markets such as digital consumer equipment will occur from the following fiscal year onward, and the difficult business environment is expected to continue in the fourth quarter.

Based on the performance for the nine months and the business environment forecast for the fourth quarter, the following revisions have been made to the consolidated financial forecasts and the consolidated forecasts of net sales and operating profit by reporting segment for the year ending March 31, 2012 which were announced in October 2011.


	Results for the year ended March 31, 2011				Forecasts for the year ending March 31, 2012 announced on								Increase (Decrease) to Results
	Results for the year ended March 31, 2011				October 27, 2011 (Previous)				January 30, 2012 (Revised)				Increase (Decrease) to Results
	Amount		%		Amount		%		Amount		%		%
	(Yen in millions, except exchange rates)
Net sales	¥	1,266,924		100.0	¥	1,230,000		100.0	¥	1,180,000		100.0		(6.9	)
Profit from operations		155,924		12.3		125,000		10.2		100,000		8.5		(35.9	)
Income before income taxes		172,332		13.6		140,000		11.4		113,000		9.6		(34.4	)
Net income attributable to shareholders of Kyocera Corporation		122,448		9.7		87,000		7.1		78,000		6.6		(36.3	)
Average US$ exchange rate		86		—		78		—		78		—		—
Average Euro exchange rate		113		—		109		—		107		—		—

Net Sales by Reporting Segment


	Results for the year ended March 31, 2011						Forecasts for the year ending March 31, 2012 announced on												Increase (Decrease) to Results
	Results for the year ended March 31, 2011						October 27, 2011 (Previous)						January 30, 2012 (Revised)						Increase (Decrease) to Results
	Amount			%			Amount			%			Amount			%			%
	(Yen in millions)
Fine Ceramic Parts Group	¥	76,269			6.0		¥	83,000			6.7		¥	80,000			6.8			4.9
Semiconductor Parts Group		174,687			13.8			159,000			12.9			152,000			12.9			(13.0	)
Applied Ceramic Products Group		197,642			15.6			206,000			16.8			177,000			15.0			(10.4	)
Electronic Device Group		242,641			19.2			224,000			18.2			225,000			19.0			(7.3	)

Total Components Business		691,239			54.6			672,000			54.6			634,000			53.7			(8.3	)
Telecommunications Equipment Group		225,168			17.8			190,000			15.4			180,000			15.3			(20.1	)
Information Equipment Group		239,916			18.9			241,000			19.6			240,000			20.3			0.0

Total Equipment Business		465,084			36.7			431,000			35.0			420,000			35.6			(9.7	)
Others		139,383			11.0			156,000			12.7			152,000			12.9			9.1
Adjustments and eliminations		(28,782	)		(2.3	)		(29,000	)		(2.3	)		(26,000	)		(2.2	)		—

Net sales	¥	1,266,924			100.0		¥	1,230,000			100.0		¥	1,180,000			100.0			(6.9	)


Operating Profit by Reporting Segment
	Results for the year ended March 31, 2011						Forecasts for the year ending March 31, 2012 announced on												Increase (Decrease) to Results
	Results for the year ended March 31, 2011						October 27, 2011 (Previous)						January 30, 2012 (Revised)						Increase (Decrease) to Results
	Amount			%*			Amount			%*			Amount			%*			%
	(Yen in millions)
Fine Ceramic Parts Group	¥	11,969			15.7		¥	12,000			14.5		¥	10,500			13.1			(12.3	)
Semiconductor Parts Group		37,331			21.4			30,000			18.9			24,000			15.8			(35.7	)
Applied Ceramic Products Group		29,049			14.7			14,500			7.0			7,300			4.1			(74.9	)
Electronic Device Group		41,646			17.2			33,000			14.7			22,500			10.0			(46.0	)

Total Components Business		119,995			17.4			89,500			13.3			64,300			10.1			(46.4	)
Telecommunications Equipment Group		2,121			0.9			3,000			1.6			2,700			1.5			27.3
Information Equipment Group		25,845			10.8			26,000			10.8			26,000			10.8			0.6

Total Equipment Business		27,966			6.0			29,000			6.7			28,700			6.8			2.6
Others		9,651			6.9			8,000			5.1			7,000			4.6			(27.5	)

Operating profit		157,612			12.4			126,500			10.3			100,000			8.5			(36.6	)
Corporate and others		14,720			—			13,500			—			13,000			—			(11.7	)

Income before income taxes	¥	172,332			13.6		¥	140,000			11.4		¥	113,000			9.6			(34.4	)

*	% to net sales of each corresponding segment

Note: Forward-Looking Statements

Certain of the statements made in this document are forward-looking statements (within the meaning of Section 21E of the U.S. Securities and Exchange Act of 1934), which are based on our current assumptions and beliefs in light of the information currently available to us. These forward-looking statements involve known and unknown risks, uncertainties and other factors. Such risks, uncertainties and other factors include, but are not limited to the following lists:

(1)	General economic conditions in our markets, which are primarily Japan, North America, Europe and Asia;

(2)	Economic, political and legal conditions and unexpected changes therein in countries or areas where we operate;

(3)	Factors that may affect our exports, including a strong yen, political and economic instability, customs, and inadequate protection of our intellectual property;

(4)	Fluctuation in exchange rates that may affect the value of our foreign assets or the prices of our products;

(5)	Intensified competition in product pricing, technological innovation, R&D activities, product quality and speed of delivery;

(6)	Manufacturing delays or defects resulting from outsourcing or internal manufacturing processes;

(7)	The possibility that expansion of production capacity and in-process R&D activities may not produce the desired results;

(8)	The possibility that companies or assets acquired by us may not produce the returns or benefits, or bring in business opportunities, which we expect;

(9)	Inability to secure skilled employees, particularly engineering and technical personnel;

(10)	The possibility of divulgence of our trade secrets and infringement of our intellectual property rights;

(11)	The possibility that we may receive notice of claims of infringement of other parties’ intellectual property rights and claims for royalty payments;

(12)	Increases in our environmental liability and in costs and expenses required to observe obligations imposed by environmental laws and regulations in Japan and other countries;

(13)	Newly enacted laws and regulations or stricter interpretation of existing laws and regulations that may limit our business operations;

(14)	Events that may negatively impact our markets or supply chain, including terrorist acts, plague, war and similar events;

(15)	Earthquakes and other related natural disasters affecting our operational facilities and our markets or supply chain, as well as social and economic infrastructure;

(16)	Exposure to difficulties in collection of trade receivables due to customers’ worsening financial condition;

(17)	The possibility of recognition of impairment losses on investment securities held by us due to declines in their value;

(18)	The possibility that we may record impairment losses on long-lived assets, goodwill and intangible assets;

(19)	The possibility that deferred tax assets may not be realized or additional liabilities for unrecognized tax benefits may be incurred; and

(20)	Changes in accounting principles.

Such risks, uncertainties and other factors may cause our actual results, performance, achievements or financial condition to be materially different from any future results, performance, achievements or financial condition expressed or implied by these forward-looking statements. We undertake no obligation to publicly update any forward-looking statements included in this document.

2. Consolidated Financial Statements

(1) Consolidated Balance Sheets (Unaudited)


	March 31, 2011					December 31, 2011					Increase (Decrease)
	Amount			%		Amount			%		Increase (Decrease)
	(Yen in millions)
Current assets:
Cash and cash equivalents	¥	273,471				¥	253,830				¥	(19,641	)
Short-term investments in debt securities		44,012					41,457					(2,555	)
Other short-term investments		201,817					169,627					(32,190	)
Trade notes receivables		19,536					18,346					(1,190	)
Trade accounts receivables		208,404					204,805					(3,599	)
Less allowances for doubtful accounts and sales returns		(4,795	)				(4,271	)				524
Inventories		232,899					263,696					30,797
Advance payments		72,207					69,141					(3,066	)
Deferred income taxes		43,035					44,606					1,571
Other current assets		38,915					39,485					570

Total current assets		1,129,501			58.0		1,100,722			57.9		(28,779	)

Non-current assets:
Investments and advances:
Long-term investments in debt and equity securities		377,075					348,297					(28,778	)
Other long-term investments		16,804					18,942					2,138

Total investments and advances		393,879			20.3		367,239			19.3		(26,640	)

Property, plant and equipment:
Land		59,638					59,843					205
Buildings		288,992					293,728					4,736
Machinery and equipment		706,474					699,677					(6,797	)
Construction in progress		7,227					13,239					6,012
Less accumulated depreciation		(814,577	)				(813,744	)				833

Total property, plant and equipment		247,754			12.7		252,743			13.3		4,989

Goodwill		64,701			3.3		72,230			3.8		7,529
Intangible assets		42,160			2.2		44,778			2.4		2,618
Other assets		68,571			3.5		62,394			3.3		(6,177	)

Total non-current assets		817,065			42.0		799,384			42.1		(17,681	)

Total assets	¥	1,946,566			100.0	¥	1,900,106			100.0	¥	(46,460	)


	March 31, 2011						December 31, 2011						Increase (Decrease)
	Amount			%			Amount			%			Increase (Decrease)
	(Yen in millions)
Current liabilities:
Short-term borrowings	¥	7,852					¥	4,888					¥	(2,964	)
Current portion of long-term debt		10,687						9,802						(885	)
Trade notes and accounts payable		101,265						87,439						(13,826	)
Other notes and accounts payable		61,226						56,633						(4,593	)
Accrued payroll and bonus		49,092						41,658						(7,434	)
Accrued income taxes		18,069						16,222						(1,847	)
Other accrued liabilities		24,337						19,954						(4,383	)
Other current liabilities		28,087						32,403						4,316

Total current liabilities		300,615			15.4			268,999			14.2			(31,616	)

Non-current liabilities:
Long-term debt		24,538						19,622						(4,916	)
Accrued pension and severance liabilities		28,924						25,596						(3,328	)
Deferred income taxes		90,005						74,703						(15,302	)
Other non-current liabilities		19,125						16,805						(2,320	)

Total non-current liabilities		162,592			8.4			136,726			7.2			(25,866	)

Total liabilities		463,207			23.8			405,725			21.4			(57,482	)

Kyocera Corporation shareholders’ equity:
Common stock		115,703						115,703						—
Additional paid-in capital		162,336						162,543						207
Retained earnings		1,268,548						1,316,805						48,257
Accumulated other comprehensive income		(75,633	)					(112,108	)					(36,475	)
Treasury stock, at cost		(50,691	)					(51,222	)					(531	)

Total Kyocera Corporation shareholders’ equity		1,420,263			73.0			1,431,721			75.3			11,458

Noncontrolling interests		63,096			3.2			62,660			3.3			(436	)

Total equity		1,483,359			76.2			1,494,381			78.6			11,022

Total liabilities and equity	¥	1,946,566			100.0		¥	1,900,106			100.0		¥	(46,460	)


Note: Accumulated other comprehensive income is as follows:
	March 31, 2011						December 31, 2011						Increase (Decrease)
	(Yen in millions)
Net unrealized gains on securities	¥				32,235		¥				22,175		¥	(10,060	)
Net unrealized losses on derivative financial instruments					(29	)					(52	)		(23	)
Pension adjustments					(3,534	)					(4,541	)		(1,007	)
Foreign currency translation adjustments					(104,305	)					(129,690	)		(25,385	)
Total	¥				(75,633	)	¥				(112,108	)	¥	(36,475	)

(2) Consolidated Statements of Income (Unaudited)


	Nine months ended December 31,												Increase (Decrease)
	2010						2011						Increase (Decrease)
	Amount			%			Amount			%			Amount			%
	(Yen in millions and shares in thousands, except per share amounts)
Net sales	¥	956,914			100.0		¥	885,389			100.0		¥	(71,525	)		(7.5	)
Cost of sales		672,363			70.3			635,035			71.7			(37,328	)		(5.6	)

Gross profit		284,551			29.7			250,354			28.3			(34,197	)		(12.0	)
Selling, general and administrative expenses		164,782			17.2			161,981			18.3			(2,801	)		(1.7	)

Profit from operations		119,769			12.5			88,373			10.0			(31,396	)		(26.2	)
Other income (expenses):
Interest and dividend income		11,687			1.2			12,690			1.4			1,003			8.6
Interest expense		(1,673	)		(0.1	)		(1,516	)		(0.2	)		157			—
Foreign currency transaction gains, net		2,053			0.2			2,982			0.4			929			45.3
Other, net		1,300			0.1			75			0.0			(1,225	)		(94.2	)

Total other income (expenses)		13,367			1.4			14,231			1.6			864			6.5

Income before income taxes		133,136			13.9			102,604			11.6			(30,532	)		(22.9	)
Income taxes		33,713			3.5			25,328			2.9			(8,385	)		(24.9	)

Net income		99,423			10.4			77,276			8.7			(22,147	)		(22.3	)
Net income attributable to noncontrolling interests		(5,706	)		(0.6	)		(5,166	)		(0.6	)		540			—

Net income attributable to shareholders of Kyocera Corporation	¥	93,717			9.8		¥	72,110			8.1		¥	(21,607	)		(23.1	)

Earnings per share:
Net income attributable to shareholders of Kyocera Corporation:
Basic	¥	510.67					¥	393.07
Diluted		510.67						393.07
Average number of shares of common stock outstanding:
Basic		183,518						183,453
Diluted		183,518						183,453

Note:

Basic earnings per share attributable to shareholders of Kyocera Corporation was computed based on the average number of shares of common stock outstanding during each period, and diluted earnings per share attributable to shareholders of Kyocera Corporation was computed based on the diluted average number of shares of stock outstanding during each period.

(3) Cautionary Statement for Premise of a Going Concern

None.

(4) Cautionary Statement for Significant Changes in Equity

None.

3. Other Information

Changes in accounting policies:

Recently Adopted Accounting Standards

On April 1, 2011, Kyocera adopted the Financial Accounting Standards Board (FASB)’s Accounting Standards Update (ASU) No. 2009-13, “Multiple-Deliverable Revenue Arrangements—a consensus of the FASB Emerging Issues Task Force” which addressed the accounting for multiple-deliverable arrangements to enable vender to account for products or services separately rather than as a combined unit. This accounting standard addresses how to separate deliverables and how to measure and allocate arrangement consideration to one or more units of accounting. The adoption of this accounting standard did not have a material impact on Kyocera’s consolidated results of operations, financial condition and cash flows.

On April 1, 2011, Kyocera adopted the FASB’s ASU No. 2010-28, “When to Perform Step 2 of the Goodwill Impairment Test for Reporting Units with Zero or Negative Carrying Amounts.” This accounting standard modifies Step 1 of the goodwill impairment test for reporting units with zero or negative carrying amounts. For those reporting units, an entity is required to perform Step 2 of the goodwill impairment test if it is more likely than not that a goodwill impairment exists. The adoption of this accounting standard did not have a material impact on Kyocera’s consolidated results of operations, financial condition and cash flows.

January 30, 2012

To All Persons Concerned


Name of Company Listed:		Kyocera Corporation

Name of Representative:		Tetsuo Kuba, President and Director

		(Code number: 6971, The First Section of the Tokyo Stock Exchange, The First Section of the Osaka Securities Exchange)

Person for inquiry:		Shoichi Aoki Director, Managing Executive Officer and General Manager of Corporate Financial & Business Systems Administration Group (Tel: +81-75-604-3500)

Revision of Financial Forecast for the Fiscal Year Ending March 31, 2012

This is to advise you that Kyocera Corporation (“the Company”) resolved at a meeting of its Board of Directors held on January 30, 2012 that the financial forecast for the fiscal year ending March 31, 2012 (“fiscal 2012”), which was published on October 27, 2011, is revised as set forth below, taking into consideration of the business performance for the nine months ended December 31, 2011 and business environment for the fourth quarter (from January 1 to March 31, 2012) for fiscal 2012:

1. Revision of consolidated financial forecast for fiscal 2012 (April 1, 2011 to March 31, 2012)


	Net sales		Profit from operations		Income before income taxes		Net income attributable to shareholders of Kyocera Corporation		Earnings per share attributable to shareholders of Kyocera Corporation
	(Yen in millions, except per share amounts)
Forecast published on October 27, 2011 (A)		1,230,000		125,000		140,000		87,000		474.23
Revision made (B)		1,180,000		100,000		113,000		78,000		425.18
Amount of decrease (B - A)		-50,000		-25,000		-27,000		-9,000		—
Ratio of decrease (%)		-4.1		-20.0		-19.3		-10.3		—
(c.f.) Results for previous fiscal year (Annual Period ended March 31, 2011)		1,266,924		155,924		172,332		122,448		667.23

2. Reason for Revision

Consolidated financial results for the third quarter (from October 1 to December 31, 2011) were sluggish, while the business environment fell short of assumptions made in October 2011. In the fourth quarter, there are concerns over persistent yen’s appreciation and the global economic impact of the downturn in European financial conditions, as well as the continued impact of floods in Thailand. As a result, the Company forecasts that expansion of production activities and recovery in component demand in principal markets such as digital consumer equipment will occur from the following fiscal year onward, and the difficult business environment is expected to continue in the fourth quarter.

Based on the economic circumstances and the business environment forecast, the Company revised the consolidated financial forecasts for fiscal 2012.

Note: Forward-Looking Statements

(1)	General economic conditions in our markets, which are primarily Japan, North America, Europe and Asia;

(2)	Economic, political and legal conditions and unexpected changes therein in countries or areas where we operate;

(3)	Factors that may affect our exports, including a strong yen, political and economic instability, customs, and inadequate protection of our intellectual property;

(4)	Fluctuation in exchange rates that may affect the value of our foreign assets or the prices of our products;

(5)	Intensified competition in product pricing, technological innovation, R&D activities, product quality and speed of delivery;

(6)	Manufacturing delays or defects resulting from outsourcing or internal manufacturing processes;

(7)	The possibility that expansion of production capacity and in-process R&D activities may not produce the desired results;

(8)	The possibility that companies or assets acquired by us may not produce the returns or benefits, or bring in business opportunities, which we expect;

(9)	Inability to secure skilled employees, particularly engineering and technical personnel;

(10)	The possibility of divulgence of our trade secrets and infringement of our intellectual property rights;

(11)	The possibility that we may receive notice of claims of infringement of other parties’ intellectual property rights and claims for royalty payments;

(12)	Increases in our environmental liability and in costs and expenses required to observe obligations imposed by environmental laws and regulations in Japan and other countries;

(13)	Newly enacted laws and regulations or stricter interpretation of existing laws and regulations that may limit our business operations;

(14)	Events that may negatively impact our markets or supply chain, including terrorist acts, plague, war and similar events;

(15)	Earthquakes and other related natural disasters affecting our operational facilities and our markets or supply chain, as well as social and economic infrastructure;

(16)	Exposure to difficulties in collection of trade receivables due to customers’ worsening financial condition;

(17)	The possibility of recognition of impairment losses on investment securities held by us due to declines in their value;

(18)	The possibility that we may record impairment losses on long-lived assets, goodwill and intangible assets;

(19)	The possibility that deferred tax assets may not be realized or additional liabilities for unrecognized tax benefits may be incurred; and

(20)	Changes in accounting principles.

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents