Weak First-Quarter Results for Ricoh

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Ricoh Company of Tokyo, Japan, today reported results for its fiscal first quarter that ran from April 1 to June 30, 2018, with sales for the first quarter declining by 0.3 percent as compared to the first quarter a year ago to ¥490.9 billion.

Profits for Ricoh’s first quarter decreased by 14.0 percent compared to the first quarter a year ago to ¥9.2 billion. Comprehensive income decreased by 70.7 percent compared to the first quarter a year ago.

While sales in Ricoh’s Office Service segment increased, sales generated by its Office Printing segment and the Commercial Printing segment declined compared to the first quarter a year ago.

Sales for Ricoh’s Office Services division increased 9.7 percent to ¥108 billion ($972.5 million) compared to the same quarter last year. Sales were boosted by a 12.8 percent increase in the Americas. Operating profit increased ¥2.6 billion, versus a loss of -¥400 million for the first quarter a year ago, to ¥2.2 billion this quarter. The company said this was mainly due to IT infrastructure sales in its domestic Japan market.

For its Office Printing segment, sales declined 3.8 percent to ¥273.7 billion. Ricoh says the decline was due to losses in its overseas market, particularly in the Americas, where sales fell 6.8  percent. Office Printing segment sales in Europe, Middle East and Africa increased by 3.4 percent, and sales in Ricoh’s Other region, which includes China, South East Asia, and Oceania, decreased by 4.8 percent.

As a result, sales in the overseas mark decreased by 2.8 percent.

Following is a closer look at Ricoh’s printer and copier-related segments for its first quarter:

Office Service

Sales in the Office Service segment increased by 9.7 percent compared to the first quarter a year ago to ¥108.0 billion. Sales of IT  infrastructure and applications increased mainly in Ricoh’s Japan domestic market. As a result, operating profit in the Office Service segment increased by ¥2.6 billion compared to the first quarter a year ago to ¥2.2 billion. For the first quarter a year ago, Ricoh reported an operating loss of ¥0.4 billion for this segment.

Commercial Printing

Sales for Ricoh’s Commercial Printing segment decreased by 7.2 percent compared to the first quarter a year ago to ¥42.4 billion. Sales decreased primarily in the overseas market mainly due to sluggish sales in the Americas. As a result, operating profit for Ricoh’s Commercial Printing segment decreased by 31.1 percent compared to the first quarter a year ago to ¥4.9 billion.

Industrial Printing

Sales generated by Ricoh’s Industrial Printing segment increased by 35.0 percent compared to the first quarter a year ago  to ¥5.8 billion. Sales of inkjet print heads “remained solid” primarily in Ricoh’s overseas market, while costs accompanying business expansion increased. As a result, Ricoh’s operating loss for its Industrial Printing segment remained flat as compared to the first quarter a year ago, with a loss of ¥0.1 billion. Ricoh’s operating loss for this segment a year ago was  also ¥0.1 billion.

Forecast

Ricoh did not change its forecast. For its current fiscal year that will end on March 31, 2019, it’s forecasting ¥2,040 billion in sales, down 1.1 percent versus the previous fiscal year, and profits of ¥47.0 billion, versus a loss of ¥135.5 billion for the previous fiscal year.

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