Kyocera Corp. is preparing to divest operations worth 200 billion yen ($1.3 billion) by March 2026, as the Japanese electronics manufacturer grapples with declining profits and weak demand for automotive components, Nikkei reported.
The company plans to identify and sell businesses with limited growth potential, accounting for about 10% of its total sales, President Hideo Tanimoto said. The restructuring comes as Kyocera forecasts a 30% drop in net profit to 71 billion yen for the fiscal year ending March 2024, marking its third straight year of decline.
The Kyoto-based manufacturer, known for its “amoeba management” style where small teams oversee individual business units, has maintained profitability since its 1959 founding. However, recent competition from Chinese rivals and sluggish performance in automotive capacitors and semiconductor packages have pressured earnings.
As part of its strategic shift, Kyocera will also reduce its 16% stake in telecommunications operator KDDI Corp. by one-third over five years. The sale is expected to generate around 500 billion yen for investments in core operations and acquisitions.
The company continues to expand in growth areas, investing 68 billion yen in a new Nagasaki facility for semiconductor-related components production.
