Ricoh reports sales decline
August 1, 2019
The OEM has announced its first quarter results, fiscal year 2019, which ends 31 March 2020.
Ricoh reported in its first quarter results a decline in sales of 2.7 percent resulting in ¥477.6 billion ($4.38 billion/ €3.97 billion) compared to ¥490.9 billion ($4.50 billion/ €4.08 billion) during the same period of the previous fiscal year. However, operating profit jumped 40 percent to €27.5 billion ($252 million/ €229 million) for the quarter.
Looking at the printing segment, office printing sales were ¥256.2 billion ($2.35 billion/ €2.13 billion) representing a year-on-year decrease of 6.4 percent. Ricoh explained that this was due to a decrease in volume of hardware and consumables revenues, particularly overseas. This was largely because Ricoh said it strategically prioritised profits over gross revenue in negotiating deals. Another factor was a decrease in MIF (machine in the field) by reconsidering contracts to emphasise profitability.
Office Printing operating profit was ¥31.5 billion ($289 million/ €262 million), an increase of 4.5 percent compared to the previous corresponding period. Ricoh explained this was due to improvement profitability, pricing adjustments, including new products and gain on sales of land, buildings and structures in Ricoh Industry Co., Ltd.’s former Saitama plant.
The commercial printing sector was up 1.5 percent and industrial printing was up 2.3 percent in the first quarter.
For its full-year forecast, Ricoh is maintaining its initial forecast.
Categories : City News
Tags : Business Financials OEM Ricoh
