On Jan. 31, Epson announced its financial results for its third quarter and for the nine months ended Dec. 31, 2016.
For the quarter, revenue was ¥278.2 billion, down ¥16.1 billion compared to the same period last year. Business profit was ¥28.3 billion, down ¥4.1 billion. Profit for the period was ¥28.4 billion, down ¥0.5 billion.
For the nine-month period, revenue was ¥765.8 billion, down ¥71.5 billion compared to the same period last year. Business profit was ¥54.0 billion, down ¥18.7 billion. Profit for the period was ¥47.0 billion, down ¥8.1 billion.
Epson noted the impacts of the stronger yen on its results, stating that for the third quarter, foreign exchange had a ¥25.9 billion negative effect on revenue for the quarter, and a ¥7.4 billion negative effect on business profit. In the first three quarters of FY2016, forex fluctuations had a ¥91.7 billion negative impact on revenue and a by ¥23.0 billion negative impact on business profit.
In its financial statement, Epson state, “In light of this substantial adverse effect, revenue and business profit underperformed the same nine-month period a year earlier. However, if you eliminate the impact of foreign exchange we achieved steady growth compared to the previous year. Although we carried out strategic investments in line with the Epson 25 Mid-Range Business Plan to sustain growth moving forward, which included gearing up for new product launches and strengthening our production base. Performance was underpinned in part by an increase in sales of strategic products.”
Epson’s printing solutions segment quarterly revenues were down to ¥192.3 billion, from ¥204.9 in the year-ago period, with printers down 9.8 percent. Ink cartridge printers declined in what Epson called a a sluggish market, and noted that “performance was negatively impacted by promotions carried out by a competitor in North America mainly for low-end home inkjet printers.”
“We had some concern that competition from rivals would adversely impact demand for our high-capacity ink tank printers. However, sales for our products remained steady in all regions owing to a market expansion and a recovery in the pace of sales growth in Latin America, following a temporary period of sluggish sales in FY2015 due to a depreciation in the value of local currencies. Furthermore, revenue from ink also trended steadily, driving a steady expansion in the inkjet printer business.”
Looking forward, Epson upwardly revised its revenue forecast ¥20.0 billion to ¥1.02 trillion, its business profit forecast ¥4.0 billion to ¥64.0 billion, and its profit forecast ¥2.0 billion to ¥48.0 billion.