FY2008 3rd Quarter Financial Announcement
ended December 31, 2007
||January 30, 2008
||Tokyo Station Conference
||Mr. Zenji Miura, CFO of Ricoh Company, Ltd., explained
FY2008 3rd Quarter results using materials below.
< Attention >
This material is prepared for the convenience of those investors who could not participate in the financial results meeting. Please understand that this material does not contain any direct quotations from anyone at the meeting.
Additionally, the Company bases the estimates in this material on information currently available to management, which involves risks and uncertainties that could cause actual results to differ materially from those projected.
Summary of 3rd Quarter Results Presentation
The consolidated sales of the Ricoh group increased 9.2% year-on-year for the third quarter ended December 31, 2007, due to steady growth of color MFPs and printers both in Japan and overseas. Increase of value-added products and ongoing cost reduction compensated for a decrease in profits caused by sales downturn in the US. As a result, we achieved 1.6% y-o-y increase of operating income and 2.8% increase of net income. We would also like to mention that "InfoPrint Solutions Company", a joint venture with IBM Corporation, has been operating as planned and its result for 3 months is included in this quarter's income statement.
As for forecast for the fiscal year ending March 31, 2008, we keep to our forecast of 2.25 trillion yen in sales. However we revised downard our earnings forecast, in consideration of the US downturn for the third quarter, recent forex fluctuations and uncertainties concerning the global economy. We still aim to break a new record in consecutive net income for 3 fiscal years.
||When do you forecast a recovery for the Americas?
||We expect it will start climbing from the middle of fiscal 2009. We don't take an optimistic view. We recognize that this situation has occurred due to external and internal factors acting simultaneously.
||Has product competitiveness been strengthened in the Americas for the second half?
||We are in between seasons of new product cycles for this fiscal year, but it will recover from the end of this fiscal year through fiscal 2009.
||What do you forecast for the next fiscal year?
||We are still working on next year's business plan and so would rather not comment at this time. We definitely aim to increase both sales and profit. We will formulate the forecast after taking into account forex and economic conditions.
||The sales of "Other" in overseas increased more than 30% year-on-year for the third quarter. Any specific country in good condition?
||"Other" mostly consists of the Asia-Pacific region which is experiencing good growth but not specific to any one country.
||Was the decrease of operating income ratio in "Office Solutions" for the third quarter affected by consolidating InfoPrint?
||InfoPrint sales were added after consolidation. On the other hand its operating income was zero, which in turn caused operating income ratio to go down.
||What was InfoPrint's contribution in sales for the third quarter?
||About 28 billion yen.
||When will new color MFP(60&50ppm) released in December, 2007 in Japan, be released in the Americas and Europe?
||It was released this January in the US, and we expect it to contribute to the results from the fourth quarter.