OSAKA -- Kyocera seeks to lift group sales by one-third to reach 2 trillion yen ($18 billion) by fiscal 2020 while boosting operating profit to at least 200 billion yen, said President Hideo Tanimoto, who also plans to double productivity with the help of artificial intelligence.
The sales target represents a 500 billion yen increase from the Japanese electronics maker's forecast of 1.5 trillion yen for the fiscal year ending in March 2018. The development of new businesses such as automotive and electronic components is expected to produce half of this growth, with acquisitions providing the rest.
"Both sales and profits have been falling, but I want to get us back on track toward growth again," Tanimoto, who took the helm in April, said Tuesday.
Kyocera also plans to spend 20 billion yen to 30 billion yen annually to bolster productivity, the president said. The Kyoto-based company will use AI in applications such as detecting flaws when designing new electronic components, as well as accelerate automation by installing robots in factories.
Though orders for electronic components show signs of picking up, much of the current recovery owes to new smartphone models, Tanimoto said. Demand for smartphone components "fluctuates a lot, but demand related to data centers, fifth-generation networks and autonomous-driving technology will remain solid," he added.