Ricoh Q3 net up, on track for record year
February 05, 2003 04:38:00 AM ET
By Kiyoshi Takenaka
TOKYO, Feb 5 (Reuters) - Ricoh Co Ltd, Japan's second-largest office
equipment maker, reported strong quarterly profits on Wednesday thanks to
brisk sales of copiers and printers, putting it on track to post record
full-year profit for the ninth year.
Ricoh, which vies with Xerox Corp (XRX) and Canon Inc for the top spot
among copier makers, said its net profit for October-December rose 19.5
percent from a year earlier to 17.80 billion yen ($149 million) on strong
sales of high-speed copiers and colour printers in Europe and the United
States.
Higher profit margins other products as digital cameras and conventional
cameras also helped to boost earnings, offseting sluggish sales of
PC-related products in Japan.
Sales rose 4.8 percent to 420.74 billion yen ($3.5 billion).
"Given the gloomy business conditions and slumping sales at rival firms, we
had a relatively good results," said Tatsuo Hirakawa, Ricoh's deputy
president.
For the full year to March 31, Rocoh raised its forecast for net profit to
73.2 billion yen from its October forecast of 71 billion, citing the
benefits of cost cuts and growing sales.
The company's sales target was revised up by 3.9 percent to 1.738 trillion
yen.
Hirakawa said he expected overseas sales to exceed domestic sales in the
next business year due to strong demand for its products abroad.
Rival Canon last week reported a 14 percent rise in 2002 profit, thanks to
brisk sales of digital cameras, and said it expected a further increase in
2003, which would be its fourth record-breaking year in a row.
Most Japanese companies begin their financial year in April, but Canon's
begins in January.
SMALLER RIVALS BAND TOGETHER
The office equipment and digital camera markets have been two of the
brightest spots for Japan's struggling high-tech manufacturers.
Ricoh's smaller Japanese rivals, Konica Corp and Minolta Co Ltd , unveiled
a merger plan last month that they hope will put them in the big league of
camera and office machine makers with Canon and Ricoh.
Konica and Minolta would have combined revenue surpassing one trillion yen
a year, still barely one-third that of Canon, Japan's biggest office
equipment maker, and less than two-thirds that of Ricoh.
Prior to the announcement, shares in Ricoh closed up 1.7 percent at 1,850
yen, compared with the Nikkei average's 0.77 percent gain.
Ricoh's stock fell 7.9 percent in the third quarter to December, slightly
outperforming the Nikkei, which slipped 8.6 percent. ($1=119.65 yen)
(Additional reporting by Yuko Inoue) REUTERS
© 2003 Reuters
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