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EPSON RETURNS TO BLACK IN Q1 ON COST CUTS Japanese electronics maker Seiko Epson Corp, in the spotlight after a high-flying IPO this year, said on Wednesday it returned to the black in the latest quarter, helped by cost cuts and the digital camera boom.
after taking a battering two years ago on a global downturn in semiconductor demand, the maker of Epson brand products is staging a comeback, having closed a domestic chip plant and concentrating on printers and electronic devices.
Group net profit in the April-June first quarter was 5.97 billion yen ($49.80 million) compared with a loss of 1.07 billion yen in the same period last year.
The company, benefiting from hot demand for digital cameras that has in turn boosted sales of its inkjet printers, said revenues grew eight percent to 315 billion yen. I
t also lifted its half year net earnings forecast on currency gains made from a stronger euro against the yen, but joined electronics giant Toshiba Corp in speaking of pain induced by cutthroat pricing by Hewlett-Packard. “Prices starting coming down at the beginning of the year when HP slashed the price of one of its printers by nearly $100,” Executive Vice President Toshio Kimura told a news conference. “It’s a lot worse than we first thought, and we are being quite cautious as the outlook for the second half is uncertain.”
Epson is now projecting first-half net income of eight billion yen, compared with a previous forecast of 4.8 billion yen, but expects sales for both the first half and full year to be four percent lower than its earlier estimates.
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