TOKYO, Oct 29, 2008 (AsiaPulse via COMTEX) -- RICOF | Quote | Chart | News | PowerRating -- Ricoh Co. (TSE:7752) said Tuesday that group net profit will likely fall 18 per cent to 87 billion yen (US$883.9 million) in the year ending March 31 after earlier projecting a 1 per cent rise to 108 billion yen.
The yen has risen more sharply than expected against the euro, likely prompting the firm's second straight annual net profit decline.
Sales are seen dropping 3 per cent to 2.15 trillion yen, their first fall in 15 years. The firm had earlier estimated sales climbing 2 per cent to 2.26 trillion yen. Sales of copiers are slumping in the European market after a strong run, as the financial crisis spreads across the region.
Ricoh, which uses U.S. accounting standards, generates 54 per cent of its group sales overseas.
European nations are "seeing the impact (of the financial crisis) on the real economy," says board member Zenji Miura, citing a lull since August.
Sales had been expected to rise 5 per cent in Europe and 2 per cent in Japan in fiscal 2008, but the firm now estimates declines of 9 per cent and 2 per cent, respectively.
Ricoh sees operating profit tumbling 17 per cent to 150 billion yen, 30 billion yen below its prior forecast, with the stronger yen denting profit by 16.6 billion yen. The firm cut its exchange rate assumption to 130 yen versus the euro from 160 yen for the second half, but kept its dollar assumptions unchanged at 100 yen.
Annual dividends are expected to be raised by 4 yen per share to 37 yen. Its payout ratio would then stay at 31 per cent.
For the six months ended Sept. 30, Ricoh reported Tuesday that sales dropped 2 per cent to 1.06 trillion yen and net profit plunged 35 per cent to 34.3 billion yen.
(Nikkei)
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