Financial Report for Shareholders - Kyocera

6
(3) Equipment Group
Net Sales: ¥527,379 million;
decrease by 3.4% from fiscal 2004
Net Sales (Yen in millions)
2002 478,293
2003
2004
2005
529,784
545,811
527,379
Digital Multifunction Products
Optical Modules
Operating Profit: ¥5,883 million;
decrease by 81.2% from fiscal 2004
Operating Profit (Yen in millions)
2002 24,413
2003
2004
2005
40,020
31,257
5,883
. Net sales decreased by 3.4% compared with fiscal 2004 to
¥527,379 million.
. Operating profit decreased by 81.2% compared with fiscal
2004 to ¥5,883 million.
. Sales of information equipment increased compared with fiscal
2004 due to expanded sale of mid- and high-speed digital
multifunction products and the sales contribution of new
models such as low- and mid-speed models. Sales of optical
instruments also increased due to contributions of optical
camera modules, which was more than enough to offset a
substantial decline in sales of digital cameras due to the
implementation of structural reforms. In contrast, sales of
telecommunications equipment were forced down due to
intensifying price competition for mobile phone handsets and
PHS-related products in Japan and overseas, and to the negative
impact of inventory adjustments for PHS-related products in
China. As a result, overall sales in this segment decreased
compared with fiscal 2004.
. Profit from information equipment grew strongly due to
increased sales of high-value-added products, while profit from
telecommunications equipment decreased due to lower sales.
Profit from optical instruments business substantially decreased
due to price erosion in digital cameras and to the recording of
costs of structural reforms. As a result, operating profit in this
segment decreased considerably.