Flat Demand for Inkjet Impacts Epson Results

Epson says its latest financial figures reflect the flat demand for inkjet printers in North America and Europe due to the slowdown recovery of the global economy.

The second quarter (2Q) consolidated results for the period ending September 30, 2015, reveal Epson’s total revenue totaled JP¥282.0 billion (US$2.3billion), a 5.8% increase compared with the same period last year. Total revenue for the first half (H1) financial year (two quarters) increased 5.9% YOY to JP¥542.9 billion (US$4.5 billion).

However, business profits fell 13.4% to JP¥23.7 billion (US$0.2 billion) in 2Q, and in H1 2015, business profit turned out to be JP¥40.2 billion (US$ 0.3 billion), a decline of 20.9% YOY.

Meanwhile, operating profits amounted to JP¥25.4 billion (US$0.2 billion) in 2Q, up 6.1% YOY, but in H1 2015 Epson generated an operating profit of JP¥41.7 billion (US$0.3 billion), a decrease of 46.9% compared to the same period last year.

Profit before tax in 2Q was JP¥24.0 billion (US$0.2 billion), a decline of 7.0% YOY, while in the first half year, profit before tax decreased 50.3% YOY to JP¥40.1 billion (US$0.3 billion). Overall, profit for the period was JP¥15.6 billion (USD $0.1 billion), down 18.2% YOY, and profit for the first half year was JP¥26.1 billion (US$0.2 billion), down 60.2% year on year.

In looking at Epson’s financial performance within its business units in 2Q, revenue for the Printing Solutions segment saw a 6.1% increase YOY to JP¥356.6 billion (US$3.0 billion), mainly driven by the continuously strong growth in high-capacity ink tank printer revenue in Asia and other region, as well as revenue growth from SIDM (serial-impact dot-matrix) printers, professional business, large-format inkjet printers and POS system products. Segment profit turned out to be JP¥44.0 billion (US$0.4 billion), down 20.3% YOY. The decline was caused by a series of factors, including intensified price competition in Japan and North America involving ink cartridge printers; the stronger U.S. dollar, which caused the cost of products manufactured overseas to rise; and strategic investment and spending on mid-term growth.

In light of its recent financial performance, Epson revised its full-year consolidated financial outlook, an overall reduction on expectations regarding revenue, business profit, operating profit, profit before tax, and profit for the year. Epson expects a revenue of JP¥1,100.0 billion (US$9.1 billion) for the 2015 fiscal year, a decline of 2.7% YOY, with adjusted business profit of JP¥82.0 billion (USD $ 0.7 billion).

You’re Welcome to Contact Us！
You can provide opinions and comments on this story!
Or you can send us your own story!
Please contact Violien Wu, Head of News & Editorial, via violien.wu@iRecyclingTimes.com