Epson posts mixed results as tariff threats and strong yen unsettle markets.
Seiko Epson reported overall first-quarter revenue of ¥320.9 billion (approximately $2.22 billion/ €2.04 billion), down 4.7% year-on-year, as foreign exchange headwinds and softer demand in certain segments weighed on performance. Business profit declined 15.9% to ¥19.8 billion ($137 million/ €126 million), with the strong yen eroding overseas earnings and elevated US tariff costs beginning to bite.
The company reported a mixed performance in its printer segment for the first quarter of fiscal 2025, with robust hardware sales offset by falling ink revenues and mounting global trade headwinds.
Revenue from its office and home printing division fell 7.3% year-on-year to ¥149.2 billion (approximately $1.03 billion/ €945 million), despite an increase in unit sales of high-capacity ink tank printers, particularly in emerging markets. Business profit, however, rose 7.2% to ¥14.2 billion ($98 million/ €90 million), thanks to cost-cutting and stable hardware pricing.
The stronger yen and declining sales of ink cartridges — as the company transitions customers to high-capacity ink tank models — contributed to a 9% drop in ink revenue. Epson cited foreign exchange pressure and changing consumer usage patterns as key challenges.
Looking ahead, Epson raised its full-year revenue forecast for office and home printing by ¥15 billion to ¥642 billion ($4.44 billion/ €4.13 billion), but flagged increasing pressure from US import tariffs, now expected to cost ¥27 billion ($187 million/ €172 million) over the year.
In a strategic shift, the company will begin production of ink tank printers in India this October to reduce exposure to trade friction and meet local demand.
