FUJI-XEROX NEW ZEALAND SLUMPS TO A $15Mln LOSS

[Anonymous]

http://www.stuff.co.nz/business/industries/2817077/Fuji-Xerox-NZ-slumps-to-15m-loss
Fuji Xerox NZ slumps to $15m loss
The
global financial crisis has driven Fuji Xerox New Zealand deep into the
red in its 2009 financial year.According to financial reports held by
the Company’s Office, Fuji Xerox’s combined operations in New Zealand,
across its trading and finance companies, lost $15.6 million for the
year ended 31 March 2008. That compares with a break even result the
previous year.

Fuji Zerox’s local chief operating officer, Tom
Duffy, says an unfavourable exchange rate against the Yen hit the
company’s operations at the same time customers were under financial
stress due to the crisis.”We decided not to pass the full impact of the
the exchange rates on to customers,” he says.If it wasn’t for the
impact of the crisis, there might have been potential to pass that on.
However, the company decided to take a “long term strategic view”, he
says.Duffy says sales were almost the same in value over the two
years.According to the accounts, Fuji Xerox New Zealand’s sales
declined from $180.4 million to $174.1 million, while Fuji Xerox
Finance recorded an increase in revenue, from $63.3 million to $66.9
million.Average achieved pricing per unit fell sharply, but the company
sold more units year-on-year, Duffy says.”The owners are pleased with
the performance,” he says.Falling interest rates in New Zealand led to
part of the loss, a one-off $7 million, on swap derivatives, says Mark
Allright, Fuji Xerox New Zealand’s chief financial officer.

That
has already partially reversed this financial year, he says.”Conditions
have improved significantly in the first six months,” says Duffy. A
particular bright spot is improved colour printing volumes, an area the
company thought customers might cut back on.Duffy says the recovery is
coming about six months earlier than Fuji Xerox expected and the
company is ahead of target for the first five months of the year.

[Author]

September 1, 2009 at 9:48 AM