Modest Gains for Ricoh’s Latest Quarter Aided by Digital-Imaging Sales, Weaker Yen

A man walks in front of the headquarters of Ricoh Co in Tokyo

Ricoh Corporation of Japan reported that for the six months ended September 30, 2015, sales roses 6.1 percent to 1,095.1 billion yen, and profit for the company rose 1.7 percent to 34.5 billion yen, both compared to the same period a year ago.

Ricoh says the sales increase was due to sales increases achieved by both its Imaging & Solutions and Industrial Products groups. Sales for the Industrial Products group and color MFPs increased, but were offset by sales declines of monochrome copier/MFPs in the Imaging & Solutions group. As a result, sales in the domestic (Japan) market decreased by 2.1 percent as compared to the previous corresponding period.

Ricoh reported a significant increase in sales for Production Printing and Network System Solutions groups that, along with the weakening trend of the yen against U.S. dollar, contributed to the overall increase in sales overseas.

Sales in the Americas increased by 16.0 percent, sales in Europe, Middle East, and Africa increased by 2.2 percent, and sales in Other region, which includes China, South East Asia and Oceania, increased by 16.2 percent.

As a result, sales in the overseas market increased by 10.7 percent as compared to the previous corresponding period. Excluding effects of foreign currency fluctuations, sales in overseas would have increased by 2.4 percent as compared to the previous corresponding period.

Selling, general, and administrative expenses increased by 4.0 percent as compared to the previous corresponding period, to 408.1 billion yen, due, Ricoh says primarily to the weakening of the yen against U.S. dollar and business acquisitions.

Imaging & Solutions Group

For the sixth months, Ricoh reports that sales for its Office Imaging group increased by 3.4 percent as compared to the previous corresponding period, to 711.3 billion yen. On top of the impact of the weakening of the yen, its says sales of color MFP models were favorable in the domestic market as well as overseas.

For its Production Printing group, sales increased by 21.6 percent as compared to the previous corresponding period to 108.1 billion yen. The increase was achieved through an increase in sales of color cut-sheet printers, along with an increase in sales of related parts, supplies, and services in both domestic and overseas markets, especially in Europe.

For its Network System Solutions group, sales increased by 14.6 as compared to the previous corresponding period to 158.5 billion yen. In Japan, even though sales decreased due to the rebound from the special demand for personal computers, sales in security products increased. In overseas markets, the “synergy effect” from business acquisitions and IT services in India contributed to overall sales increase.

As a result of the above, overall sales in the Imaging & Solutions segment increased by 6.9 percent as compared to the previous corresponding period to 978.0 billion yen, but operating profit decreased by 3.6 percent as compared to the previous corresponding period to ¥78.6 billion

Full-Year Forecast

For its entire fiscal year ending March 2016, Ricoh is slightly lowering both its sales and profits forecast from its previous forecast, forecasting sales of 2,300.0 billion yen and profit of 71.0 billion yen.

More Resources

April 2015: Earnings Slump at Ricoh for Fourth Quarter and Full Fiscal Year

October 2014: RICOH REPORTS ROBUST INCOME, STEADY SALES GAINS FOR FIRST HALF OF ITS FISCAL YEAR

April 2014: RICOH REPORTS ROBUST FINANCIAL RESULTS FOR FISCAL YEAR

February 2014: RICOH REPORTS STRONG FINANCIAL RESULTS, RAISES OUTLOOK

November 2013: SALES, NET INCOME UP FOR RICOH JAPAN’S SECOND QUARTER, FISCAL HALF-YEAR, PUSHES FORECAST UP

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