OEM announces newly revised financial results outlook as well as announcing non-operating expenses.
Among the revisions of Epson’s financial results, which had initially been announced in April, is the expectation for net sales and income in each category to exceed the previous forecast during the first half of the financial year, which covers 1 April to 30 September 2013, due to the effects of the weakened yen, which has boosted profit.
In terms of information-related equipment, Epson expects to benefit from better than forecast sales of high-capacity ink tank printers in emerging economies, as well as increased net sales of inkjet printer consumables due to an increase in office inkjet printers used in North America and steady sales of inkjet printer consumables in Europe.
The company also forecasts positive effects from expanded sales of semiconductors and watches in its devices and precision products segment, along with a reduction in fixed costs.
For the second half of the financial year, which covers 1 October 2013 to 31 March 2014, Epson reiterated its previous net sales forecast but has reduced its expected profitability in each income category as a result of the expenses associated with increased sales of high-capacity ink tank printers, efforts to boost sales of the office inkjet printers that will drive consumables growth, slowing demand for certain applications in the devices and precision products segment, the effects of the slowing economy in China, and the delayed economic recovery in Europe.
Epson has therefore announced that it will raise its previous full-year outlook; with expected net income raised from ¥13 billion ($133.1 million/€100.4 million) to ¥15 billion ($153.6 million/€115.8 million), net sales increased from ¥910 billion ($9.3 billion/€7 billion) to ¥930 billion ($9.5 billion/€7.2 billion), and operating income increased 12.1 percent to ¥37 billion ($378 million/€285.7 million).
The results are also expected to significantly exceed those of the previous financial year ending March 2013, which saw a net income of -¥10.091 billion (-$103.3 million/-€78 million), net sales of ¥851.297 billion ($8.718 billion/€6.577 billion), and operating income of ¥21.255 billion ($217.7 million/€164.2 million).
In terms of non-operating expenses, Epson expects to post ¥3.714 billion ($38 million/€28.7 million), caused in part by losses incurred on forward exchange contracts concluded in advance of recent fluctuations in the foreign exchange market.