Revenue Up While Profits Down for Epson

Originally written and published by Kathleen Wirth at wirthconsulting.org

Profits Down for Epson’s Past Nine Month, But Revenue, Profits Up for Printer Group

According to wirthconsulting.org, Seiko Epson of Japan has reported financial results for the nine-month period ending on December 31, 2017, with its revenue shows a year-over-year(YOY) up of 8.8% to JPY¥833.4 billion (approximately US$ 7.65 billion), but its profits demonstrate a YOY 26.3% down to JPY¥34.7 billion (approximately US$ 320 million).

Epson says that its inkjet-printer business “continued to expand,” as sales of its high-capacity ink-tank inkjet printers “jumped” in emerging economies, and sales of ink-tank inkjet printers also grew in developed economies. Consumables’ revenue was flat, however, sales of page printers and their consumables declined, but the latter was the result of Epson focusing on high-value models.

Due to sales growth in the photo- and graphic-arts printing segments, total revenue generated by large-format professional inkjet printers increased. Epson saw “solid demand” in the growing signage, textile, and label printer markets. Revenue generated by point-of-sale (POS) printers also increased.

Revenue for Epson’s entire printer-solution group for the period was JPY¥553.7 billion (approximately US$5.08 billion), up 8.4% YOY. Profit for the group was JPY¥71.1 billion (approximately US$650 million), up 8.2% YOY.

Forecast

Epson revised its full-year forecast as shown below, in order to reflect a depreciation of the yen, with revenue up versus its previous forecast, but profits for the full fiscal year, which will end in March 2018, revised downwards: