Ricoh Reports Results for Latest Quarter and Half-Year

Advertisements

Ricoh Company of Japan released financial results for its latest fiscal quarter and its fiscal half-year, with profits boosted by the sale of Ricoh Logistics Company and higher sales generated by its Office Services segment, with sales declines in its Office Printing segment.

Second Quarter Results

For its second fiscal quarter (the three months that ended on September 30, 2018), Ricoh reported sales of ¥497.3 billion, down 1.8 percent versus the same quarter a year earlier, and profits of ¥26.7 billion, versus a loss of 6.2 billion for the same quarter a year earlier.

First Half of Year

For the first half of its fiscal year (April 1 to September 30, 2018), Ricoh’s sales decreased by 1.1 percent as compared to the previous corresponding period, to ¥988.2 billion.

Sales in the  Office Printing segment, Commercial Printing segment, and Other segment decreased as compared to the previous corresponding period.

While sales in the Office Service segment, Industrial Printing segment, and Thermal Media segment increased, sales in the Office Printing segment decreased as compared to the previous corresponding period.

As for overseas sales by region, sales in the Americas decreased by 3.3 percent, and sales in Europe, the Middle East and Africa decreased by 0.4 percent, while sales in Ricoh’s Other region, which includes China, South East Asia and Oceania, decreased by 10.0 percent.

Gross profit decreased by 1.7 percent, as compared to the previous corresponding period, to ¥383.8 billion, mainly due to a decrease in sales.

Other income increased as compared to the previous corresponding period mainly due to gains on the sales of shares of Ricoh Logistics System Company. As a result, operating profit increased by 136.2 percent as compared to the previous corresponding period, to ¥52.0 billion.

Profit before income tax expenses increased by 181.8 percent as compared to the previous corresponding period, to ¥50.0 billion.

As a result, profit attributable to owners of the parent increased by 696.2 percent as compared to the previous corresponding period, to ¥36.0 billion.

Comprehensive income increased by 29.0 percent, as compared to the previous corresponding period, to ¥55.5 billion due to an increase in the profit for the period.

First Half Review by Segment

Office Printing
Sales in the Office Printing segment decreased by 3.7 percent, as compared to the previous corresponding period, to ¥538.5 billion.

Sales in the  overseas market decreased mainly in hardware and related supplies due to refining of business meetings based on the profit-oriented marketing strategy in accordance Ricoh’s 19th Mid-Term Management Plan. Gross profit decreased accordingly.

Selling, general and administrative expenses decreased significantly due to the effect of structural reforms. As a result, operating profit in the Office Printing segment increased by 12.9 percent, as compared to the previous corresponding period, to ¥57.2 billion.

Office Service
Sales in the Office Service segment increased by 9.1 percent, as compared to the previous corresponding period, to ¥231.3 billion.

Sales of business-process solutions and IT services increased mainly in the domestic market and Americas. As a result, operating profit in the Office Service segment was ¥6.2 billion. Operating profit for the previous corresponding period was a loss of ¥2.5 billion.

Commercial Printing
Sales in the Commercial Printing segment decreased by 4.5 percent, as compared to the previous corresponding period, to ¥86.5 billion.

Sales decreased primarily in hardware mainly because the current period was in the drop-off period of the product life cycle.

As a result, operating profit in the Commercial Printing segment decreased by 2.3 percent, as compared to the previous corresponding period, to ¥11.1 billion.

Sales in the Industrial Printing segment increased by 10.0%, as compared to the previous corresponding period, to ¥9.7 billion. Sales of Inkjet heads were “sluggish” in China, which Ricoh attributes to trade-friction issues with the United States.

As a result, operating loss in the Industrial Printing segment was ¥2.0 billion of loss. Operating profit for the previous corresponding period was a loss of ¥0.9 billion.

Revised Forecast

Ricoh revised its forecast for its fiscal year. While it still maintains its forecast of ¥2,040 billion in sales, it has increased its profits forecast 7 percent to ¥54 billion, down 135.5 percent versus the previous fiscal year.

Advertisements

More Resources

Advertisements
%d bloggers like this: