Profits Down for Epson’s Past Nine Month, But Revenue, Profits Up for Printer Group

Seiko Epson of Japan has reported financial results for the nine-month period ending on December 31, 2017, with revenue up 8.8 percent year-over-year to ¥833.4 billion yen, but profits down 26.3 percent year-over-year to ¥34.7 billion.

However, Epson says that its inkjet-printer business “continued to expand,” as sales of its high-capacity ink-tank inkjet printers “jumped” in emerging economies, and sales of ink-tank inkjet printers also grew in developed economies. Consumables’ revenue was flat, however, and page printers’ and their consumables’ sales declined, but the latter was the result of Epson focusing on higher-value models.

Total revenue generated by large-format professional inkjet printers increased, due to sales growth in the photo- and graphic-arts printing segments. Epson says it saw “solid demand” in the growing signage, textile, and label printer markets. Revenue generated by point-of-sale (POS) printers also increased.

Revenue for Epson’s entire printer-solution group for the period was ¥553.7 billion, up 8.4 percent year-over-year. Profit for the group was ¥71.1 billion, up 8.2 percent year-over-year.

Epson’s Visual Communications group generated revenue of ¥150.8 billion, up 12.9 percent year-over-year, with profits of ¥18.3 billion, up 54.5 percent year-over-year.

Epson’s Wearable and Industrial Products group generated revenue of ¥128.6 billion, up 6.5 percent year-over-year, with profits of ¥6.7 billion, up 3.7 percent year-over-year.

Other revenue amounted to ¥0.6 billion, down 36.4 percent year-over-year, with a loss of ¥0.4 billion, compared to a loss of ¥0.4 billion for the same period a year earlier.

Forecast

Epson revised its full-year forecast as shown below, in order to reflect a depreciation of the yen, with revenue up versus its previous forecast, but profits for the full fiscal year, which will end in March 2018, revised downwards:

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