Small Decline in Sales for OKI’s First Half, But Profits Slide; Will Expand Professional-Printer Business

OKI UK Headquarters

For the first half of its fiscal year running from April 1, 2015 to September 30, 2015,  OKI Electric Industry of Tokyo reported net sales of 223.0 billion yen, down 2.5 percent for the same period a year ago, and 0.9 billion yen in profits, down 91.0 percent versus the same period a year ago.

Printer Business

For its second half, OKI’s printer business recorded 59.0 billion yen in net sales, down from the 61.6 billion yen, and an operating loss of 0.5 billion yen, both versus the same half-year period a year ago.

Sales of color and monochrome LED-based printers were lower, due, OKI says, to a shrinking market in the United States and Europe, though sales of A3 copier/MFPs were “healthy.” OKI says it didn’t follow competitors’ lead by reducing prices for low-end products, but instead focused on generating profits, which it says resulted in decreased sales performance.

OKI says it will focus on strengthening its sales channels in Europe and the United States, develop niche-market products, such as those for healthcare and design, and expand its professional-printer business with its recent acquisition of Seiki I Infotech’s wide-format printer business.

OKI/Seiko Wide Format Printers

OKI/Seiko Wide Format Printers

Revised Forecast

OKI has revised its full-year forecast downwards, and is now projecting net sales of 515.0 billion, down from the 545.0 billion it had previously forecast, and profit of 10.0 billion yen, down from the 22.0 billion it had previously forecast. The revisions reflect OKI’s forecast of lower ATM sales in China, lower sales in Brazil, and lower sales of printers, the last of which it says have been affected by increased price competition and foreign-currency exchange-rate fluctuations.

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