Epson Revenue, Profits Flat in Latest Financial Results
Epson today reported financial results for its third fiscal quarter (the nine months ending on December 31, 2018). Revenue was down 0.5 percent to 829.0 billion yen, and business profit at 58.0 billion yen was essentially flat, with both versus the nine months a year earlier.
Printing Solutions Business
For the quarter, sales for Epson’s Printing Solutions business were down 9.8 billion yen to 201.7 billion yen versus the same period a year ago. Printer sales were down 11.8 billion yen to 143.8 billion yen, with inkjet models making up 85 percent of those sales. However, sales for Epson’s Professional Printing group were up 0.7 billion yen to 53.1 billion yen.
For its complete fiscal year that will end on March 31, 2019, Epson lowered its sales forecast for its Printing Solutions group, and is now forecasting that sales will be down 26.6 billion yen to 710.0 billion yen compared to the previous fiscal year.
Among the factors affecting its financial results, Epson cited:
- Slowing of the Chinese economy;
- Reduction of inventory by channels, which affected several Epson businesses, mainly its high-capacity ink-tank printers, as well as Epson robots, SIDM printers, and microdevices;
- Currency devaluation and economic stagnation in Latin America and in some other emerging markets;
- Overall soft product sales; and
- Ongoing discounting of ink cartridge printers by competitors in advanced economies.
Epson also looked at its strategic progress, which includes:
- Continued growth for its high-capacity ink-tank printer business; Epson noted that ink-tank printers now represent over 40 percent of the A4 printer market in Latin America; over 20 percent in Asia-Pacific; over 10 percent in China; and nearly 40 percent in India.
- Epson will continue to upgrade its products and services to target the office-imaging market., including developing high-speed, line-head inkjet MFP models, and will also expand its inkjet line-up in conjunction with its expansion of its PrecisionCore print-head production expansion that will also include OEMing print heads to others.
- Epson will continue to seek to expand in the professional printing market, and will also continue developing next generation projectors and robots.
For its fiscal year that will end on March 31, 2019, Epson lowered its forecast. It’s now forecasting that revenue will be down 2.9 percent to 1,070.0 billion yen, and business profit down 13.1 percent to 65.0 billion, with both versus the previous fiscal year.
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- April 2018: Epson Number-One Inkjet Vendor in India; Opens New Vietnam Sales Office
- September 2017: Epson Opens New Inkjet-Printer Manufacturing Facility in the Philippines
- July 2017: Robust First Quarter for Epson, ‘Acclaim’ for Enterprise Inkjet MFPs