Kyocera's H1 net profit falls 28.8% YoY

The Kyoto-based group’s operating profit plunged 45.5% on the year to ¥33,785 million in the six months to September 30.

Its consolidated net sales fell by 9.6% year on year to ¥653,243 million, primarily due to fluctuations in the Japanese currency.

Net sales in its applied ceramics division — which makes PV modules, among other products — fell to ¥97,906 million, from ¥113,636 million throughout the corresponding period a year earlier.

The company partly attributed its poor performance to the global decline of selling prices for solar panels, as well as disappointing sales of its PV modules in the US market.

It also said that demand for its solar panels fell due to the reduction of Japan’s feed-in tariff (FIT).

The Japanese government currently offers a FIT rate of ¥24/kWh for projects above 10 kW in size and between ¥31-¥33/kWh for projects below 10 kW.

In the three months to June 30, Kyocera’s applied ceramics unit posted revenues of ¥45.6 billion, down 13.2% from the preceding quarter.

“Sales of the solar energy business, principally for domestic industrial use, are expected to increase” in the third quarter of the current fiscal year, Kyocera said in an online statement.

As a result, it is maintaining its original group earnings forecast for the full fiscal year to March 31, 2017.