Instead of Breaking Even, Ricoh May Record Loss for Fiscal Year
The Nikkei Asian Review reports that Ricoh Company of Tokyo, Japan, may be considering booking up to $929 million (100 billion yen ) in impairment losses on under-performing North American operations. Earlier this month, Ricoh had forecast that it expects to break even for its fiscal year that will end on March 31, 2018, but that may be change if Ricoh records an impairment loss.
According to the Nikkei Asian Review, the units include U.S. distributor Ikon Office Solutions, which Ricoh purchased for about $1.6 billion in 2008. “Ricoh may record the losses for the current fiscal year ending next month. The Japanese company had nearly 390 billion yen in goodwill and intangible assets from such acquisitions on the books at the end of 2017,” according to the Nikkei Asian Review.
The shift from paper to digital documents in the office in North America and Europe is said to be behind the Ikon losses. In production and commercial printing, many competitors are said to be compounding Ricoh’s problem.
Last year, Ricoh began restructuring, which including some 5,000 job cuts, primarily in Ricoh’s biggest overseas market, the United States, and also stopped the flow of financial aid to its troubled Indian subsidiary, Ricoh India. Ricoh also announced plans to sell its entire stake in Coca-Cola Bottlers Japan Holdings for about 55 billion yen.
Keep in mind, however, that Ricoh published a statement not confirming the Nikkei Asian’s story, and stating that it has not officially announced any impairment losses associated with its North American business. It says it’s in the process of conducting its annual impairment accounting tests, any loss remains unknown at this time, and that it will announce them if and when it identifies them.
- February 2018: Seeking New Growth, Ricoh to Spend Some $1.8 Billion on Mergers and Acquisitions
- 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