Epson Sales Rebounds Back in Q2
Due to the COVID-19, Epson has reported that its revenue decreased in the second quarter (Q2). As the OEM improved product model mix and maintained prices amid supply shortage, sales have been rebounding since Q1.
Comparing to the forecast in major business and products, the OEM reveals that demand rebounded more than expected in major products such as high capacity ink tank printers, ink cartridge printers, ink cartridges, commercial & industrial inkjet printers, etc. However, profit was squeezed by lower revenue and lower inventories.
Some highlights include:
- Revenue was of JP¥245.9 billion (US$2.34 billion), down JP¥20.5 billion (US$159.49 million) year-over-year.
- Business profit turned out to be JP¥10.2 billion (US$97.27 million), down ¥4.3 billion (US$41 million) year-over-year.
By segment, printing solutions reports a revenue of ¥178.0 billion (US$1.70 billion) in Q2, down 8.1% from the same period in last year. Segment profit was ¥22.0 billion (US$29.79 million), up 1.3% comparing to the same period in last year. Printers registered a revenue of ¥122.1 billion (US$1.16 billion) in Q2, up 2.2% comparing to the same period last year. Professional printing generated a revenue of ¥44 billion (US$419.56 million), down 5.7% year-over-year.
Looking at the full-year outlook, Epson believes supply shortages will continue in spite of the efforts to recover from production delays. The company predicted that COVID-19 will have an approx. ¥130.0 billion (US$1.24 billion) negative effect on revenue. For the full fiscal year, Epson predicts that revenue to be ¥960.0 billion (US$9.15 billion), down ¥83.6 billion (US$797.19 billion) year-over-year, up ¥30 billion (US$286.07 million) vs. previous outlook. Business profit is predicted to be ¥35 billion (US$333.75 million), down ¥5.8 billion (US$55.31 million) year-over-year, up ¥15 billion (US$143.03) vs. previous outlook.
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