Profits Up, But Revenue Down For Epson’s Fiscal Year

Seiko Epson of Japan today reported financial results for its fiscal year that ended on March 31, 2019.

The firm reported revenue of  ¥1,089.6 billion, down ¥12.4 billion, or 12.4 percent, with both versus the previous fiscal year. Business profit was ¥70.4 billion, down ¥4.2 billion, or down 4.2, with both versus the previous fiscal year.

On the bright side, profit for the year was ¥53.7 billion, up ¥11.8 billion, and 4.9 percent, with both versus the previous fiscal year.

Epson blamed currency volatility for the decline revenue, stating that it had a ¥15.7 billion negative effect on revenue, and a ¥8.6 billion negative effect on business profit. It also said revenue declined because of  economic stagnation in China and Latin America, and also because of political instability in various world regions.

The firm also stated that revenue for its robot and micro-devices businesses  continued to fall in China.

However, it stated that growth for its high-capacity ink-tank inkjet printers was restored.

Epson Printing Solutions Group

Revenue for Epson’s Printing Solutions Group was down 13 percent to ¥723.6 billion compared to the previous fiscal year, while profit was down 0.3 percent to ¥94.5 billion.

Epson noted that, in its printer business, it transitioned further away from ink-cartridge inkjet printers and instead focused on its high-capacity refillable ink-tank inkjet printers.

It continued to maintain ink-cartridge printer prices, and unit shipments decreased by 1.9 million units to 6.4 million units. Meanwhile, sales of high-capacity ink-tank models increased by 1.2 million units to 9 million units during Epson’s fiscal year.

Ink sales decreased due to a decline in the number of ink-cartridge printers in the field. Epson says foreign-currency exchange-rated effects were an additional factor in the decrease in total revenue in the printer business as a whole.

It also says its professional-printer revenue was flat year-over-year, despite the negative effect of foreign-currency exchange rates, as a decline in sales of large-format printers for photo applications was offset by growth in the strategic signage-, textile- and label-printer categories.

Epson noted that profit for its Printing Solutions group was essentially flat (down 0.3 percent) year-over-year. The group benefited from Epson’s transition away from
ink-cartridge printers and toward high-capacity ink-tank models, as well as from a onetime gain associated with Epson print heads. On the other hand, Epson’s increased spending on future growth and foreign-exchange effects negated these benefits.

Fiscal-Year Forecast

For its current fiscal year that will end on March 31, 2020, Epson is forecasting ¥1,130.0 billion in revenue, a year-over-year increase of ¥40.3 billion.

It expects business profit  to be in the range of ¥65.0 billion, a decrease of ¥5.4 billion.
Epson is also forecasting ¥45.0 billion in profit for the period, a decrease of ¥8.7 billion.

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