Epson’s printer sales boost profits amid mixed outlook
November 4, 2024
Epson’s six-month results reveal strategic wins in printing, overshadowing losses elsewhere.
Seiko Epson Corporation (Epson), has reported upbeat financial results on the back of increased printer sales for the six months ending 30 September 2024. Covering the period from 1 April 2024, to 30 September 2024, Epson’s performance underscores a mix of successes and challenges across its key divisions, especially within its printing solutions segment.
The company’s revenue reached ¥674.1 billion (approximately $4.73 billion/ €4.5 billion), marking a 5.6% increase from the same period last year. Business profit surged to ¥51 billion (around $358 million/ €340 million), up by an impressive 108.9% year-over-year, reflecting a strong performance by core products and effective cost controls?.
The printing solutions segment emerged as Epson’s standout performer. This division’s revenue rose by 9% to reach ¥476.5 billion ($3.34 billion/ €3.2 billion), largely due to high-capacity ink tank printers and office shared printers, which experienced robust demand, especially in Western Europe and South America. Increased print demand from emerging markets and growth in consumables for commercial and industrial inkjet printers, notably from Chinese manufacturers, bolstered segment profits. Additionally, favourable exchange rates due to yen depreciation further supported revenue?.
However, Epson’s financial report also highlighted notable challenges in other areas. The visual communications segment, a traditionally strong contributor through projector sales, experienced a 2% decline in revenue to ¥108 billion ($758 million/ €720 million). Demand softened significantly in China and in education markets in Europe and North America, where projector sales fell short. Although segment profit saw minor gains due to currency benefits, these were insufficient to overcome the broader decline in sales volumes?.
The manufacturing-related and wearables segment also encountered hurdles, with revenue falling by 2.9% to ¥89.9 billion ($631 million/ €600 million). This decline was primarily attributed to reduced sales of SCARA robots, particularly in Europe and China, where high interest rates and lower investment appetite impacted demand for automated manufacturing solutions. The segment reported a modest loss of ¥0.5 billion ($3.6 million/ €3.4 million), highlighting ongoing market challenges. Wearable products, supported by heightened tourism in Japan, helped offset some of the segment’s losses, but the overall performance remained subdued?.
Looking ahead, Epson has adjusted its full-year revenue projection downward, forecasting a total of ¥1.34 trillion ($9.4 billion/ €8.9 billion), a reduction of ¥30 billion ($210 million/ €200 million) from previous projections. This revised outlook reflects the impact of currency fluctuations and a cautious stance on global demand across its segments. However, Epson has maintained its profit forecast at ¥85 billion ($596 million/ €570 million), with executives confident that ongoing cost management strategies and inventory controls will sustain profitability?.
Our take on this: Epson’s strength in the printing solutions segment could serve as a crucial buffer for the company, but at the expense of which other OEMs?
Categories : City News
