Profits Up for Fujifilm, Issues Generally Optimistic Forecast
Fujifilm Holdings of Japan announced financial results for the first nine months of its fiscal year, with the first nine months ending on December 31, 2019, and the fiscal year ending on March 31, 2020. Of note during the nine-month period was the Fujifilm completed its $2.3 billion purchase of Xerox’s 25-percent stake in Fuji Xerox in November 2019, obtaining 100-percent ownership of Fuji Xerox, its 57-year old joint venture with Xerox.
For the nine-month period, Fujifilm’s operating income declined by 4.2 percent year-over-year to ¥151.6 billion, but net income increased by 19.4 percent year-over-year to ¥120.7, “proceeding as planned” for Fujifilm’s full-year target of 8 percent.
Revenue for the period was ¥1,728.4, down 4.4 percent year-over-year.
The firm noted a decline in sales of office-imaging equipment in the United States and Europe, but sales generated by Fujifilm’s healthcare business group expanded.
Revenue for Fujifilm’s Document Solutions group was ¥721.1 billion, down 2.2 percent year-over-year, while operating income for the group was ¥80.5 billion, up 20.3 percent.
The firm noted that Document Solutions sales declined in the United States Europe, and China, but that sales were strong for its flagship ApeosPort-VIIC color copier/MFP series in Japan.
Additionally, the firm noted “strong sales” for its Iridesse production press in the United States, Europe, and Japan.
In the solutions and services business, sales were “favorable” with the expansion of one-stop services for the design and maintenance of IT environments in Japan.
For Fujifilm’s third quarter that ended on December 31, 2019, revenues were ¥596.3 billion, down 4.9 percent year-over-year; operating income was ¥59.6 billion, up 10.0 percent year-over-year; and net income was also ¥59.6 billion, up 10.0 percent year-over-year.
Revenue for Fujifilm’s Document Solutions group was ¥235.8 billion, down 1.5 percent year-over-year.
For its fiscal year that will end on March 31, 2020, Fujifilm is forecasting:
- Revenue of ¥2,370.0 billion, down 2.5 percent year-over-year, and down 2.7 percent versus its previous forecast;
- Operating income of ¥220.0 billion, up 4.8 percent year-over-year, but down 8.3 percent year-over-year; and
- Net income of ¥165.0, up 19.5 percent year-over-year, and up 1.9 percent versus its previous outlook.
- January 2020: Fuji Xerox to Terminate Technology Agreement with Xerox
- November 2019: Mixed Financial Results for Fujifilm, But Raises Forecast
- November 2019: In Big Shakeup, Xerox to Exit Fuji Xerox Partnership
- November 2019: Fuji Xerox Will Continue to Supply Xerox, But Also Other OEMs
- November 2019: Xerox Completes Sale of Stake in Fuji Xerox
- May 2019: Fujifilm Posts Upbeat Financial Results; Will Pursue Xerox Take-Over in Court