Modest Growth for Ricoh in Latest Quarter; Slower Copier/MFP Sales Growth
Ricoh Company of Tokyo reports that for its latest fiscal quarter, sales were up 2.3 percent to 526.4 billion yen compared to the same quarter a year ago, mainly due to an increase in sales in both its Imaging & Solutions and Industrial Products segments.
The firm reports that while the Japanese economy continued to maintain its gradual recovery – largely fueled by improved corporate profits along with the recovery in the labor market and an increase in household income – there was a temporary decline in consumer spending due to a new consumption-tax increase.
Under such market conditions in Japan, sales in the Industrial Products and Other segment increased, but was offset by a sales decline in Ricoh’s Imaging & Solutions segment. As a result, sales in the Japan market decreased by 0.4 percent compared to the same quarter a year ago.
However, sales in the Americas increased by 2.9 percent (a decrease of 0.4 percent excluding foreign-currency exchange fluctuations), while sales in Europe, the Middle East, and Africa increased by 4.9 percent (a decrease of 3.4 percent excluding foreign currency-exchange fluctuations) and sales in Ricoh’s Other region, which includes China, South East Asia, and Oceania, increased by 5.5 percent (an increase of 5.3 percent, excluding foreign currency-exchange fluctuations).
Overall, sales in Ricoh’s overseas market increased by 4.0 percent compared to the same quarter a year ago. Excluding the effects of foreign-currency fluctuations, overseas sales would have decreased by 0.8 percent compared to the same quarter a year ago.
Gross profit for Ricoh increased by 3.8 percent to 219.3 billion yen, due, Ricoh says, to increased sales and weakening of the yen. Although Ricoh’s attempts to streamline costs have contributed to its controlling selling, general, and administrative expenses, these expenses have increased by 1.6 percent to 192.1 billion yen, due to the weakening of the yen and acquisitions.
As a result, operating profit increased by 22.2 percent to 27.1 billion yen compared to the same quarter a year ago.
Profit before income tax expenses increased by 24.1 percent to 25.8 billion yen compared to the same quarter a year ago. As a result, profit increased by 28.8 percent to 15.0 billion yen.
However, although profit increased compared to the same quarter a year ago, Ricoh says comprehensive income declined to 6.5 billion yen due to a decline in cumulative translation adjustments.
Within Ricoh’s Imaging & Solutions group, sales were up 2.1 percent to 470.4 billion yen. Operating proft increased by 3.8 percent to 39.6 billion yen due to an increase in gross profit achieved through the increase in sales and the weakening of the Japanese yen. Within this group:
- Office Imaging sales decreased by 1.0 percent to 359.7 billion yen. Ricoh says that although sales of color MFPs increased in both the Japan and overseas markets through the sale of new models introduced in the previous fiscal year, the significant decrease in sales of monochrome MFPs and the decline in after-sales revenue affected the total sales in this category. As a result, sales in this category declined compared to the same quarter a year ago.
- Sales in the production-printing category increased by 6.8 percent to 41.9 billion yen. Ricoh says this increase was achieved through an increase in sales of color cut-sheet printers introduced in the previous fiscal year, along with an increase in sales of related parts and supplies and services in both the Japan and overseas markets.
- Sales in Ricoh’s Network System Solutions business increased by 18.5 percent to 68.7 billion yen primarily through an increase in sales of personal computers in the Japan market, along with an increase in sales overseas achieved through the acquisition of mindSHIFT Technologies in the United States.