Net profit came to 41.2 billion yen (343 million dollars), as pre-tax profit climbed 37.3 percent to 76.0 billion yen.

Sales rose 3.4 percent to 1.07 trillion yen, said the world's largest manufacturer of integrated circuit ceramic packages.

"Although sales in the fine ceramics and electronics device groups were down, strong sales in the equipment group, including telecommunications and information equipment, resulted in an increase in sales," the firm said in a statement.

Kyocera achieved higher profits "as a result of increased sales and productivity in the equipment group in addition to a decrease in restructuring costs in overseas subsidiaries," it said.

It also suffered an eight billion yen loss due to the devaluation of investment securities and equity in a domestic affiliate.

For the year to March 2004, Kyocera expects net profit will further recover to 52 billion yen and pre-tax profit to 92 billion yen on sales of 1.14 trillion yen.

SPACE.WIRE