Ricoh shows strong profits
Wednesday, April 25 2007
by Ciara O'Brien
Japanese firm Ricoh increased its operating profit for the fiscal year ended 31 March, as strong sales and cost cutting measures boosted the bottom line.
The company sells office equipment, including printers, copiers and fax equipment, in addition to other office supplies such as blank optical media. It also deals in digital cameras and other electronic devices, and offers business services such as document management.
Operating profit rose 17.4 percent for the year to JPY174.38 billion (EUR1.077 billion), with revenues reaching the JPY2.069 trillion -- an 8.4 percent increase and the first time Ricoh has breached the JPY2 trillion barrier. The office equipment maker saw its business grow throughout its three main market segments, which broadly cover office products, industrial and other businesses.
Net profit beat previous figures of JPY111.72 billion, growing 15.1 percent year-on-year. This was the first year that the figure exceeded JPY100 billion.
International sales were particularly notable, with revenue up 13.1 percent to JPY1.067 trillion outside Japan. This was boosted by weakness in the yen against the dollar and the euro. Meanwhile, in the domestic Japanese market, revenue rose 3.7 percent year-on-year to just over JPY1 trillion.
Colour copying equipment, including multifunction printers, proved a major driver for Ricoh's earnings, but other product categories such as digital cameras and semiconductors also grew compared to last year.
The company is planning another record year, with operating profit expectations of JPY195 billion and net profits of JPY117 billion, with revenue predicted to reach YPY2.25trillion
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