Ricoh to Record ¥23.1 Billion ($202.4 Million) Extraordinary Loss
Earlier this week, Ricoh Company of Tokyo, Japan, released results for its last six months, including some positive increases for sales and operating profit, but today announced that it will record an extraordinary loss of ¥23.1 billion ($202.4 million).
The losses stem from a Japanese bank requesting compensation related to loans to Ricoh’s troubled Ricoh India subsidiary.
Ricoh explained that several banks in Japan have issued letter of credits to underwrite the debt of Ricoh India. These banks in Japan have the right to request compensation from Ricoh, if the request is made by local banks in India and the payment based on a letter of credit.
Yesterday, one of the local banks called on the letter of credit, and the corresponding bank in Japan has requested compensation from Ricoh Company. Consequently, Ricoh recognized the possibility of increasing losses related to this loan guarantee, thus allocating ¥23.1 billion yen, which is the full amount of the letter of credit, to its extraordinary losses in its non-consolidated financial results.
As Ricoh intends to claim the total amount from Ricoh India, the record of the allocation of the amount will be changed from reserves for guaranteed losses to an allowance for doubtful accounts.
Ricoh says it won’t change its published consolidated financial outlook for its fiscal year ending on March 31, 2018, for Ricoh Company, and which was previously announced on October 27, 2017.
- October 2017: Sales up for Ricoh, but Revises Forecast to Reflect Ricoh India Losses
- October 2017: Ricoh Execs to Take Pay Cuts; Ricoh to End Support for Ricoh India
- July 2017: Brighter First Quarter for Ricoh, but Office Printing Sales Down
- June 2017: Ricoh Said to be Selling Subsidiaries, Laying-Off Workers in North America
- May 2017: Ricoh Transfers Nearly 900 Small and Mid-Size Direct Accounts to Local Dealer
- May 2017: Bleak Fiscal Year for Ricoh, with Profits, Sales Sliding
- April 2017: Ricoh Reports Impairment Loss, Lowers Profits Forecast for Fiscal Year
- April 2017: Big Changes Afoot at Ricoh, Calls for Shifting Direct-Sale Customers to Dealers
- February 2017: Ricoh Revamps Leadership at Ricoh USA, Eliminates Ricoh Americas CEO Position