Printer sales hold up, but declining ink revenues and price erosion weigh on profits.
Seiko Epson Corporation reported a 23.3% decline in business profit for its third quarter, as falling ink revenues and printer price erosion overshadowed strong sales of high-capacity ink tank models.
The Japanese company posted a business profit of ¥22.9 billion ($154 million/ €142 million), down from ¥29.8 billion ($193 million/ €186 million) a year earlier, despite a 1.2% rise in office and home printing revenue to ¥184.1 billion ($1.19 billion/ €1.15 billion). The overall printing solutions segment grew 1.7% to ¥255.2 billion ($1.65 billion/ €1.59 billion), supported by increased sales of ink tank and office inkjet printers. However, ink sales fell 4% year-on-year, hit by weaker cartridge demand and inventory adjustments.
Epson maintained its full-year business profit forecast at ¥85 billion ($573 million/ €527 million) but raised its revenue outlook to ¥1.36 trillion ($9.16 billion/€8.44 billion), driven by stronger-than-expected demand for high-capacity inkjet models. The impact of its Fiery digital printing software acquisition will be reflected in future results.
Epson is containing costs but warned of continued pricing pressures.
