Fuji Xerox Delays 10% Profit Until FY2014

According to Bloomberg, Fuji Xerox was targeted to reach a 10% operating profit margin in 2013 but now expects to achieve it in its next fiscal year (FY2014). The delay was mainly due to weak sales as the company was focused on emerging markets for revenue.

As revealed by Bloomberg, in order to reduce the impact of falling prices in selling new machines, Fuji Xerox is trying to gain revenue by expanding into services, including software and security. Also, the company said its new factory in northern Vietnam will be able to produce 2 million printer and copier units a year by April 2016. Bloomberg reported that Fuji Xerox—which is 75% owned by Fujifilm—earned more than half of Fujifilm’s operating profit in the year ended March 31.

Mr. Tadahito Yamamoto, President of Fuji Xerox, noted, “The company is trying to expand documentation services, such as, printing and delivering direct mail in Japan, Hong Kong, Singapore, and other developed countries in Asia to increase profit margins”. Further, Yamamoto pointed out that there is more space for growth in the China market and the company expects around 50% of sales to come from outside Japan in 2013.