Fujifilm’s First-Quarter Profits Decline as Shipments of Printers to Xerox Suffer Sharp Decline

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The Nikkei Asian Review reports that Fujifilm of Tokyo’s first-quarter profits dropped 24 percent year-over-year, citing declining shipments of office printers to sales partner Xerox. However, Fujifilm’s other businesses are said to have helped “stave off a worse result.”

Operating profit for Fujifilm’s April to June 2016 quarter declined to 27.5 billion yen ($260 million), while net profit declined 54 percent to 11.1 billion yen. Foreign-exchange losses of 6.4 billion yen are said to have contributed to the steep decline.

Fujfilm’s document-solutions group “put the biggest drag on operating profit,” declining about 40 percent. Fujifilm sells printers in Asia and Oceania via its subsidiary Fuji Xerox, but is said to rely on Xerox in other regions. The Nikkie Asian Review says Xerox is reducing its printer inventories as its prepares to split into two separate companies by the end of 2016.

Digital cameras such as Fujifilm’s Instax instant cameras performed better, with Fujifilm’s imaging solutions group seeing a 17 percent rise in operating profits.

Overall, first-quarter results turned out somewhat better than the company had expected, Fujifilm Vice President Masaru Yoshizawa said.

Fujifilm is maintaining its full-year operating profit to rise 15 percent to an all-time high of 220 billion yen. Fujifilm President Kenji Sukeno said that Xerox will emerge from its split “with greater strength in sales, expressing confidence that the office printer business will recover in the second half.”

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