Notice about Difference Between First Half Outlook and Actual Results and Notice of Revised Financial Results Outlook

 

- TOKYO, Japan October 28, 2011 -

Seiko Epson Corporation ("Epson", TSE: 6724) today announced the following difference between its first half outlook (fiscal year ending March 31, 2012) disclosed on July 27, and the actual results for the same period announced today.

The company also reported that, in the light of recent business trends, it would be revising its full-year consolidated financial results outlook for the fiscal year ending March 2012.

1. Difference between first half outlook (fiscal year ending March 31, 2012) and actual results

(April 1, 2011, to September 30, 2011)

(Unit: billion yen, except where stated otherwise)

  Net sales Operating
income
Ordinary
income
Net income Net earnings
per share (yen)
Previous
outlook (A)
452.0 7.0 5.0 -11.0 -55.06
Actual results (B) 425.518 6.774 6.146 -4.37 -21.89
Difference (B-A) -26.482 -0.226 1.146 6.63 -
Change (%) -5.9% -3.2% 22.9% - -
Reference:
Previous year
(ending March 2011)
479.286 14.659 14.848 7.458 37.33

2. Revised full-year outlook (fiscal year ending March 31, 2012)

(April 1, 2011, to March 31, 2012)

(Unit: billion yen, except where stated otherwise)

  Net sales Operating
income
Ordinary
income
Net income Net earnings
per share (yen)
Previous
outlook (A)
970.0 43.0 40.0 17.0 85.09
Revised outlook (B) 910.0 33.0 31.0 10.0 50.15
Difference (B-A) -60.0 -10.0 -9.0 -7.0 -
Change (%) -6.2% -23.3% -22.5% -41.2% -
Reference:
Previous year
(ending March 2011)
973.663 32.709 31,174 10.239 51.25

3. Reasons for the difference and revision

Net sales in the first half finished below the previous outlook due to declining demand and intensified competition resulting from the continuing economic stagnation in Europe and the United States. Operating income, however, came in at the same level as the previous forecast as the impact of declining net sales was absorbed by cost cutting and efficient allocation of expenditures. Quarterly net losses were better than forecast because taxation expenses at overseas subsidiary companies were lower than expected.

Epson revised its full year outlook for net sales and for every income category due to the continuing effects of the strong yen and ongoing concerns over the slowdown in the economies of Europe and the United States. Despite a tough business environment, Epson will work steadfastly to secure profit by launching competitive new inkjet printers, 3LCD projectors and other products, and by implementing further cost cuts and greater efficiencies in the allocation of expenses.

From the second half onwards, Epson is assuming exchange rates of 75 yen to the US dollar and 105 yen to the euro.

Note that Epson is still confirming the effects on its business of the recent floods in Thailand, and as such this situation has not been reflected in today's results. Epson will make a disclosure as appropriate if it determines that the effects of the disaster will have a significant impact on its results.


About Epson
Epson is a global imaging and innovation leader that is dedicated to exceeding the vision of customers worldwide through its compact, energy-saving, high-precision technologies, with a product line-up ranging from printers and 3LCD projectors for enterprise and the home, to sensors and other microdevices. Led by the Japan-based Seiko Epson Corporation, the Epson Group comprises more than 78,000 employees in 99 companies around the world, and is proud of its ongoing contributions to the global environment and the communities in which it operates.
http://global.epson.com/