Sales, Profits Down for OKI’s Fiscal Year; Stronger Japanese Currency Seen as Culprit
This week, OKI Electric Industry Company of Tokyo reported financial results for its fiscal year that ended on March 31, 2016, with net sales of 490.3 billion, down 9.2 percent, and profits of 6.6 billion yen, down 80.0 percent, both versus the previous fiscal year.
According to the firm, one bright spot was that operating income exceeded its projections. It attributed its lower profits to the impact of foreign-currency fluctuations, with the Japanese yen growing stronger versus the U.S. dollar, up about 10 percent since the beginning of the year. As for net sales for the year:
- Sales of ATMs in China and existing networks for telecom carriers declined year-over-year.
- Sales of fire-fighting wireless systems “passed a peak.”
- Sales of cash-handling equipment and systems for financial institutions in Japan were favorable.
Within OKI’s printer business, net sales for the year were 124.6 billion yen, down from OKI’s previous projection for 130.0 billion yen, and down 4.7 percent from the 129.3 billion yen OKI reported for the previous fiscal year. Operating income for the printer business was down 5.3 percent to 1.4 billion yen for the year.
Overall, the firm reported that a sluggish economy in emerging economies, competition from “home-grown vendors” in the China ATM market, as well as shrinking of the office-printer market, and intensified competition in the office-printer market, affected its results.
For its current fiscal year that will end in March 2017, OKI is projecting net sales of 500 billion yen and profits of 12.0 billion yen.
- February 2016: OKI Struggles through Difficult Quarter, But Forecast Unchanged
- November 2015: Small Decline in Sales for OKI’s First Half, But Profits Slide; Will Expand Professional-Printer Business
- August 2015: Slight Dip in Printer/MFP Revenue for OKI’s First Quarter, but Total Sales Up
- May 2015: OKI Rolls On with Strong Financial Results for its Latest Fiscal Year
- February 2015: OKI Net Sales and Income up for Nine-Month Period and Third Quarter
- November 2014: OKI Reports Favorable Sales Growth for its Printer Business, Raises Forecast for its Full Year