Seeking New Growth, Ricoh to Spend Some $1.8 Billion on Mergers and Acquisitions
The Nikkei Asian Review reports that, after years of cost-cutting, Ricoh Company of Tokyo, Japan, is set to spend $1.8 billion on mergers and acquisitions as it seeks new avenues for growth.
Ricoh President and CEO Yoshinori Yamashita also said at a news conference this week in which he outlined Ricoh’s new five-year business strategy, that Ricoh’s businesses would not be threatened by Fujifilm’s proposed takeover of Xerox, a move that would make the combined Xerox-Fuji Xerox the world’s largest maker of copier/MFPs.
If successful, Ricoh’s share of office equipment in overall sales would fall below 40 percent from its current 50-percent level.
Ricoh’s aggressive cost-cutting has included a shrinkage of its workforce; its workforce is expected to shrink to under 100,000 employees by the end of March 2018.
Along with its cost-cutting, Ricoh also ended financial support for its troubled Indian subsidiary, Ricoh India, the latter of which is proceeding with bankruptcy insolvency proceedings
The strategy appears to be working, as, earlier this month, Ricoh reported that sales for the nine-month period ending December 31, 2017 increased by 3.2 percent as compared to the previous corresponding period, to ¥1,516.2 billion. Sales in all segments, except Ricoh’s Office Printing segment, increased. As a result, profits increased by 321.4 percent as compared to the previous corresponding period, to ¥17.3 billion. It’s now expecting to break even, as opposed to posting a loss, as it had previously forecast, for its entire fiscal year that will end on March 31, 2018.
The Nikkei Asian Review notes, however, that the office-printing market has been significantly declining, noting that market-research firm IDC’s data indicates that global shipments of office-imaging equipment fell nearly 30 percent over the past nine years.
- February 2018: Fueled by Cost-Cutting, Ricoh Reports Sales and Profits up for Nine-Month Period
- January 2018: Ricoh India Files for Bankruptcy Insolvency Proceedings
- November 2017: Ricoh to Record ¥23.1 Billion ($202.4 Million) Extraordinary Loss
- 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