Epson Reports Strong Q3, Increases Printer Sales Forecast

“The global economy as a whole for the first three quarters of the year under review continued on a weak recovery path, although there were also signs of underlying economic strength. The U.S. economy gradually recovered, getting a boost from improved unemployment figures and a rise in personal spending, among other factors. The European economy remained weak yet showed signs of picking up, with the unemployment rate leveling off and manufacturing holding steady. In Asia, the tempo of Chinese economic expansion continued to stabilize, while the Indian economy continued to gradually decelerate. Elsewhere in Asia, the economy gradually picked up in the ASEAN region and Taiwan, while South Korea also showed signs of gathering momentum. Meanwhile, the Japanese economy continued to gradually recover, in part due to the effects of an improved export environment owing to the weakening of the yen and in part due to economic measures.”—Epson

Epson has reported its financial result in the first three quarters of 2013 fiscal year (from April 1, 2013 to December 31, 2013). Net sales totaled ¥750.5 billion (US$7.1 billion), up 20.2% compared with the same period in 2012. Operating income increased by 535.2% to ¥71.9 billion (US$710 million). Epson’s net income was ¥50 billion (US$481 million), up from a loss of ¥12.6 billion in the same period a year ago.

In the 3rd quarter, Epson’s net sales was up by 19.5% year-over-year, reaching ¥281.1 billion, operating income, on the other hand, totaled ¥40.8 billion, up 57.6%. Net income was ¥38.9 billion, 44.5% more compared with the same period a year ago.

Epson’s Information Equipment Segment, which includes Printing System (Inkjet printers, Page printers, Business systems) and Visual Communications (Projector and HMD), has reported ¥241 billion net sales in the 3rd quarter, compared to ¥197 billion in Q312 (see below the chart). In the nine month period, net sales in the information-related equipment segment were ¥621 billion (US$5.9 billion), up 23.6% year over year, while segment income was ¥97.7 billion (US$926.9 million), up 157.1% year over year.

According to Canon, “In the inkjet printer business as a whole, net sales from hardware increased. Although shipments of printers that use ink cartridges declined, net sales benefited from foreign exchange effects, a rise in average selling prices, and an increase in shipments of high-capacity ink tank models. Net sales from consumables also rose, mainly due to foreign exchange effects and increased unit shipments. Large-format inkjet printer net sales increased due to a rise in average selling prices associated with increased sales of high-end units and consumables, as well as due to foreign exchange effects. Page printer net sales decreased due to a decline in unit shipments, the result of Epson’s focus on selling high added value models. Serial impact dot matrix printer net sales increased due to foreign exchange effects and steady demand for units used in tax collection systems in China. POS system printer net sales increased due to foreign exchange effects and an increase in unit shipments in the Americas.”

Epson has adjusted the full year outlook. It expects net sales to be ¥990 billion, up 30% compared with its projection last October. Operating income adjusts from ¥58 billion to ¥79 billion, up 21% and net income adjust from ¥34 billion to ¥52billion, up 18%.

Epson has also adjusted its full year projection for the Information Equipment Segment. It expects the net sales of this segment will reach ¥642 billion in the fiscal year of 2013, compared to ¥618 billion in its previous assumption. The OEM expects inkjet sales will take up 72% of total sales (see below).