Revenue Down for Fujifilm’s Quarter, but Forecasts ‘Record High’ Net Income

On August 8th, Fujifilm Holdings of Japan – which last year failed in a complicated merger deal to acquire Xerox – reported results for its first quarter that consisted of the three months ending on June 30, 2019.

The firm reported that operating income increased by 9.9 percent year-over-year, but revenue declined, due it says, to a decline in its imaging business (which mainly involves cameras), and a decline in exports to the United States and Europe for its document-imaging business. However, revenues generated by Fujifilm’s healthcare business increased year-over-year, and operating profit increased for its document-imaging business, due to higher profitability and structural reforms.

For its first quarter, Fujifilm reported revenues of ¥535.3 billion, down 5.2 percent year-over-year; operating income of ¥37.1 billion, up 0.7 percent year-over-year; and net income of ¥14.7 billion, down 48.2 percent year-over-year.

Fujifilm’s Document Solutions group reported revenues of ¥233.1 billion, down 8.0 percent year-over-year, but operating income of ¥21.7 billion, up 6.8 percent year-over-year. The company said that although exports to the United States and Europe were lower, sales of its DocuCentre-VI C2264 and ApeosPort-VII C color MFPs were “solid” in Japan, China, and Asia. In the production-printer segment, sales of the Iridesse color production press were strong in all regions. In the solutions and services segment, Fujifilm won a large BPO (business processing outsourcing) contract in Australia, and sales for this segment were strong in Japan.

Forecast

For its complete fiscal year that will in March 2020, Fujifilm forecasts revenue of ¥2,480 billion, up 2.0 percent versus the previous fiscal year, but down 4.6 percent versus a previous forecast. It’s also forecasting a “record high” for operating income – ¥240 billion – up 14.4 percent versus the previous fiscal year- and up 4.3 percent versus a previous forecast.

For full-year net income, Fujifilm is forecasting another “record high” – ¥177.0 billion – which would be up 12.6 percent versus the previous fiscal year (the firm did not provide a previous forecast for net income).

Financial Performance (U.S. GAAP)

Revenue (consolidated)

FY2016: 1,080.9 Billion yen, FY2017: 1,047.8 Billion yen, FY2018: 1,005.6 Billion yen

Operating Income (consolidated)

FY2016: 82.7 Billion yen, FY2017: 8.4 Billion yen, FY2018: 96.4 Billion yen

Note: These figures represent the revenue and operating income of FUJIFILM Holdings Corporation’s “Document Solutions” segment, which is equivalent to Fuji Xerox (consolidated). The operating income for fiscal 2017 ended March 31, 2018 entails one-time structural reform expenses of 70 billion Japanese yen. When excluding the one-time structural reform expenses, operating income for fiscal 2017 is 78.4 billion Japanese yen.

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