April 22, 2014 6:12 am JST

Solar panels seen handing Kyocera 10% profit bump

OSAKA -- Kyocera Corp. is on track to generate some 130 billion yen ($1.25 billion) in operating profit in the year ending next March, up 10% or so, thanks to brisk demand for products related to solar power generation.

     Sales at the Kyoto-based company are seen rising by 100 billion yen, or 7%, from fiscal 2013 estimates to 1.54 trillion yen. The fine-ceramic-parts business, which covers solar-power-related parts and cutting tools for automotive manufacturing, will likely drive growth.

     The feed-in tariff program is expected to continue to bolster demand for solar-power-related parts, as companies and individuals increasingly opt for green energy. Sales to businesses are expected to rise for panels used at megasolar farms. For consumers, sales of systems combining panels and storage batteries will likely climb.

     In the semiconductor parts segment, demand will likely grow for substrates used in smartphones, as will server components. The information equipment segment, which includes printers and multifunction copiers, is expected to enjoy sales growth in both advanced countries and emerging markets, including China, Southeast Asia, the Middle East and Africa.

     In the year ended March 31, Kyocera's operating profit apparently jumped 56% to about 120 billion yen, topping the projection by 5 billion yen. Sales are estimated at around 1.44 trillion yen, a gain of 12% on the year and roughly 10 billion yen better than forecast.