Ricoh Continues to Suffer Losses in Q3

Ricoh Continues to Suffer Losses in Q3

Ricoh released its consolidated results for the third quarter (Q3) and the nine months of fiscal year 2020.

In the last nine months, sales decreased significantly by 20.1% to JPY 1,193.0  billion (US$11.32 billion)compared to the previous corresponding period. Consolidated sales would have decreased by 17.2% after excluding the equity method adoption and foreign exchange impacts.

In the Office Printing, sales of hardware decreased due to restrictions on sales activities by lockdowns and self- isolation. Sales of non-hardware also decreased due to the decline in demand of printing caused by the decrease in attendance rate (mainly in Europe and the Americas). These effects peaked in April to May, and a recovery trend has been seen since June, but the recovery has been moderate. Other factors in reduced sales included the adoption of equity method accounting for Ricoh Leasing Co., Ltd. (hereinafter, Ricoh Leasing) whose shares were transferred.

In Japan, sales decreased 18.9% as compared to the previous corresponding period, while sales in the overseas market decreased 21.1% Excluding effects of foreign currency fluctuations, sales in overseas would have decreased by 20.3% year-over-year. Geographically, sales in the Americas decreased by 29.3% year-over-year, while sales in Europe, the Middle East, and Africa decreased by 12.4% year-over-year with other regions down by 16.9% (a decrease of 15.4% excluding foreign currency exchange fluctuations) year-over-year.

Some other highlights include:

• Gross profit was down 24.3% compared to the previous corresponding period to JPY 415.7 billion (US$3.94 billion), mainly due to a decrease in sales volume of hardware and non-hardware.
• Selling, general and administrative expenses fell 8.3% year-over-year to JPY 447.0 billion (US$4.24 billion) despite an impairment loss of JPY 7.7 billion (US$73.05 million) recognized on property, plant and equipment and intangible assets in Commercial Printing segment.
• Operating profit (loss) decreased JPY 99.1 billion (US$940.20 million) compared to the previous corresponding period to JPY 29.7 billion (US$281.78 million) (loss).
• Profit (loss) before income tax expenses decreased JPY 94.0 billion (US$891.82 million) year-over-year to JPY 25.6 billion (US$242.88 million) (loss).

By segment, office printing sales were JPY 593.5 billion (US$5.63 billion), down 22.7% year-over-year, due to a decrease in sales volume of hardware and consumables revenues. Office Printing operating profit was JPY 6.1 billion (US$57.87 million), decreasing 91.6% comparing to the same period in last year.

Office Service sales were JPY 358.2 billion (US$3.40 billion), decreasing 10.0% year-over-year. Commercial Printing sales were JPY 98.1 billion (US$930.72 million) and decreased 26.4% year-over-year. Industrial Printing sales were JPY 16.6 billion (US$157.49 million), decreasing 6.6% year-over-year.

Related:

Ricoh Results Hit by COVID-19

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