Brighter First Quarter for Ricoh, but Office Printing Sales Down

Ricoh Company of Japan reported an improved first quarter. Sales for its first quarter, which ended on June 30, 2017, increased by 1.0 percent as compared to the first quarter a year ago, to ¥492.5 billion. Sales in all segments excluding the Office Printing segment, increased.

Gross profits increased by 0.6 percent as compared to the first quarter a year ago,, to ¥199.9 billion, mainly due to the increase in sales. Operating profit increased by 74.1 percent as compared to the first quarter a year ago,, to ¥18.9 billion.

Profit before income taxes increased by 61.7 percent as compared to the first quarter a year ago, to ¥16.8 billion.
Profits increased by 126.3 percent as compared to the first quarter a year ago, to ¥10.7 billion.

Comprehensive income “increased significantly” as compared to the first quarter a year ago,, to ¥26.8 billion due to the increase in “cumulative translation adjustments and profit.” Ricoh reported a loss of  ¥64.8 billion for the first quarter a year ago.

Results by Segment

Office Printing

Sales in the Office Printing segment decreased by 2.8 percent to ¥284.6 billion as compared to the previous corresponding period.

Ricoh sates that, due to price adjustments that focused on profitability, the volume of copier/MFP sales decreased in Japan and overseas markets, but operating expenses decreased due to an improvement in profitability and the effects of restructuring.

As a result, operating profits for the Office Printing segment increased by 10.9 percent as compared to the previous corresponding period, to ¥31.3 billion.

Office Service

Sales in Ricoh’s Office Service segment increased by 5.9 percent  to ¥98.4 billion, as compared to the previous corresponding period.

Sales of IT products were up in Japan. As a result, Ricoh’s operating loss in its Office Service segment decreased by ¥0.1 billion as compared to the previous corresponding period, to a loss of ¥0.4 billion. Ricoh’s operating loss for this segment in the previous corresponding period was ¥0.6 billion.

Commercial Printing

Sales in Ricoh’s Commercial Printing segment increased by 6.9 percent to ¥45.6 billion as compared to the previous corresponding period, “due to the increase in sales of color cut-sheet printers and related parts and supplies” in both Japan and overseas.

As a result, operating profit for Ricoh’s Commercial Printing segment increased by 280.9 percent as compared to the previous corresponding period, to ¥7.1 billion.

Industrial Printing

Sales in Ricoh’s Industrial Printing segment increased by 78.4 percent to ¥4.3 billion as compared to the previous corresponding period.

Sales of inkjet print heads were good, and as a result, Ricoh’s operating loss for its Industrial Printing segment decreased by ¥0.5 billion as compared to the previous corresponding period, to a loss of ¥0.1 billion. Ricoh’s operating loss for this segment in the previous corresponding period was  ¥0.6 billion.

Thermal Media

Sales in the Thermal Media segment increased by 5.0 percent to ¥14.5 billion as compared to the previous corresponding period.

Sales in both Japan and overseas were good. As a result, operating profit for the Thermal Media segment increased by 9.1 percent as compared  to the previous corresponding period to ¥1.7 billion.

Other

Sales in the Other segment increased by 5.0 percent to ¥44.9 billion as compared to the previous corresponding period.

Though income and profit for Ricoh’s optical equipment business mainly increased, it was offset by a decrease in income and profit for its camera business, due to a decrease in sales of digital cameras. As a result, operating profit in the Other segment decreased by ¥2.5 billion as compared to the previous corresponding period to a loss of  ¥2.0 million.

Forecast

Ricoh is maintaining its forecast of profits of ¥3 billion in profits for its current fiscal year, but is projecting higher sales within Japan and lower sales outside of Japan.

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