Declines for Fujifilm’s First Half, Second Quarter, But Some Recovery

On November 10th, Fujifilm of Tokyo, Japan, posted results for the first half of its fiscal year and its second quarter.

First Half

For its first half (April 1 to September 30, 2020), Fujifilm posted revenue of ¥997.3 billion, down 11.9 percent year-over-year; operating income of ¥56.4 billion, down 38.6 percent year-over-year; and net income of ¥67.6 billion, up 10.6 percent year-over-year. Earnings per share were ¥169.12, versus ¥149.38 for the same period a year earlier.

Fujifilm stated that although revenue and operating income were down due to the impact of the COVID-19 pandemic, the pace of decline is shrinking, with a path to recovery evident in the second quarter.

The firm stated that its sales reflected higher sales for its bio CDMO business and electronic-materials business, and lower sales for its document business, photo-imaging business, and graphic-systems business.

For the six months, revenue was down for all business groups, with revenue for the Document Solutions down 15.5 percent year-over-year to ¥410.2 billion. The Document Solutions group reported operating income of ¥28.3 billion, down 48.4 percent year-over-year.

In Fujifilm’s production inkjet-printer business, revenue decreased overall as the demand for ink used in the wide-format printer business in Europe “decreased sharply,” although sales of industrial inkjet print heads were on a recovery trend as Fujifilm customers resumed operations in China.

For Fujifilm’s Document Solutions group, revenue declined year-over-year by 15.5 percent due to the COVID-19 pandemic and adverse Asian foreign-currency-exchange rates.

However, in the office-products business, overall sales volume increased year-over-year due to higher sales in Japan, China, and other countries and regions. In Japan, the increase in work-at-home led to greater demand for Fujfilm’s NetPrint service, which enables use of copier/MFPs installed at Seven-11 retail stores throughout Japan for printing. In the office-printers segment, however, sales declined in all geographical areas.

In the production-services segment, sales were down year-over-year as customers curtailed investment due to the global economic slow-down.

Sales of Fujifilm’s beat service was up year-over-year. Beat is a product that provides office security, as well as a network environment, and paperless fax.

Second Quarter

For its second quarter (July 1 to September 30, 2020), Fujifilm reported net income of 40.6 billion, versus 53.1 billion for the same quarter a year earlier, but an improvement over first-quarter net income of 27.5 billion.

Forecast

For its fiscal year ending March 31, 2021, Fujifilm slightly raised its forecast via its previous forecast, reflecting the growth of its bio CDMO business. However, the forecast is still below results for its previous fiscal year.

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