Ricoh Reports Much Improved Profits, But Slow Sales, for Third Quarter
On February 7th, Ricoh Company of Japan released results for the nine-month period (third quarter) that ended on December 31, 2018, with profit increasing by 192.1 percent year-over-year to ¥50.6 billion yen, due to a decrease in interest expenses and other losses, with insolvent Ricoh India, which is now up for sale, being excluded from financial results.
However, Ricoh’s sales for the third quarter decreased by 1.8 percent year-over-year to ¥1,489.4 billion.
Operating profit increased by 64.8 percent year-over-year to ¥79.1 billion.
Office Printing Group
Sales in the Office Printing segment decreased by 4.7 percent year-over-year to ¥809.2 billion.
Sales for the group in Ricoh’s overseas market decreased mainly in hardware and related supplies due to “refining of business meetings based on the profit-oriented marketing strategy in accordance with 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 for the Office Printing segment increased by 1.9 percent year-over-year to ¥90.2 billion.
Office Service Group
Sales in the Office Service segment increased by 9.8 percent year-over-year to ¥348.8 billion.
Sales of business-process solutions and IT services increased mainly in the domestic market and Americas.
As a result, operating profit for the Office Service segment was ¥9.4 billion. For the same period a year earlier, Ricoh had reported an operating loss for the Office Service group of ¥3.0 billion.
Commercial Printing Group
Sales in the Commercial Printing segment decreased by 1.9 percent year-over-year to ¥135.1 billion.
Ricoh says hardware sales decreased because the current period was in the “drop-off period of the product life cycle.”
However, with the launch of a new product at the end of period, operating profit for the Commercial Printing segment increased by 1.2 percent year-over-year to ¥20.2 billion.
Industrial Printing Group
Sales in the Industrial Printing segment increased by 16.3 percent year-over-year to ¥15.6 billion.
However, sales of inkjet print heads “turned sluggish” in China, due to China’s trade-friction issues with the United States, and expenses increased due to initial investment.
As a result, the Industrial Printing segment reported a loss of ¥2.9 billion. Operating loss for the same period a year earlier was ¥1.7 billion.
Thermal Media Group
Sales in the Thermal Media segment increased by 9.3 percent year-over-year to ¥50.6 billion.
Sales in both the domestic market (Japan) and the overseas market “remained solid,” while operating expenses increased mainly due to the sharp rise in the prices of raw materials.
As a result, operating profit for the Thermal Media segment decreased by 43.1 percent year-over-year to ¥2.6 billion.
Sales for Ricoh’s Other segment decreased by 14.4 percent year-over-year to ¥130.0 billion.
Ricoh reported a gain on sales of shares in Ricoh Logistics System Company, therefore operating profit for the Other segment increased by 199.1 percent year-over-year to ¥17.0 billion.
For its complete fiscal year that will end on March 31, 2019, Ricoh expects profit of ¥54 billion yen versus a loss of ¥135.3 billion for the previous fiscal year; operating profit of ¥85 billion yen versus a loss of ¥115.6 billion for the previous fiscal year; and sales of ¥2.04 trillion, down 1.1 percent versus the previous fiscal year.
- January 2019: Ricoh Expanding Thermal-Production Line in Europe
- January 2019: Trade War Prompts Ricoh to Move Manufacturing Out of China
- December 2018: Ricoh to Close Call Center, Lay Off Workers
- October 2018: Ricoh to Acquire MakeLeaps, LAC Corporation
- October 2018: Ricoh Reports Results for Latest Quarter and Half-Year
- July 2018: Weak First-Quarter Results for Ricoh
- July 2018: Ricoh to Build Production Facility in China
- July 2018: Ricoh: Latest Dealer Conference ‘Most Successful’
- June 2018: What’s Next for Ricoh? Five Big Things