The OEM announced their yearly results of Fiscal year 2017 which ended 31 March 2018.
Ricoh explained in their release of the year end results that it “continuously undertook cost structure reforms, business process reforms, expansion of growing businesses or reinforcing governance and management structure without considering the precedent in order to remove all the impediments for growth.
“The Company proceeded with integration or abolition of production bases, narrowing of development of new models, optimisation of functions of the headquarter or indirect jobs during the current year.”
The company explained that in their view, the world economy remained stable and recovered gradually. The economy on the whole continued to grow steadily. In Japan and the US, the economic growth remained moderate whilst in Europe the economy remained stable even though uncertainty related to Brexit was brought about. On the other hand, the economy in China was in a slight slowdown.
Ricoh’s sales for the Year increased by 1.7 percent as compared to the previous corresponding period, to ¥2.06 trillion ($18.7 billion/€15.6 billion).
As for the domestic market, sales in the Office Printing segment, Commercial Printing segment and Industrial Printing segment decreased whilst sales in other segments, mainly in the Office Service segment, increased significantly. As a result, the sales in the domestic market increased by 4.2 percent as compared to the previous corresponding period.
As for the overseas market, sales in all segments excluding the Office Printing segment increased, though sales in the Office Printing segment decreased.
As for sales in the overseas market by region, sales in the Americas decreased by 5.2 percent, sales in Europe, Middle East and Africa increased by 4.6 percent and sales in Other region, which includes China, Asia and Oceania, increased by 6.4 percent.
Impairment of goodwill includes impairment losses amounted to ¥145.8 billion ($1.3 billion/€1.1 billion) of goodwill incurred in the Office Printing segment and Office Service segment.
As a result, Operating profit (loss) of the Year was ¥115.6 billion (loss) ($1.05 billion/€876.7 million) (Operating profit of the previous corresponding period was ¥33.8 billion ($307.8 million/€256.3 million)).
Forecast for the coming fiscal year Ricoh says: “The world economy recovered gradually. The prospects of the economy in the emerging markets, uncertainty of government policies or fluctuations of the capital markets should however be noted.
“Ricoh proceeded with cost structure reforms and selection of businesses according to 19th Mid-Term Management Plan which launched from April 2017, holding up “RICOH Resurgent’’.
“Against intense competition in both the overseas markets and domestic market, Ricoh takes on reforms of business processes to strengthen the profitability of the core business. At the same time, Ricoh invests aggressively on new and growth business based on the growth strategy “Ricoh Challenge” announced in February 2018.”
