Notice of Revised Financial Results Outlook and Revised Year-End Dividend Outlook

 

- TOKYO, Japan, October 31, 2012 -

In light of recent business trends, Seiko Epson Corporation ("Epson," TSE: 6724) today revised its full year (April 1, 2012, to March 31, 2013) consolidated financial results outlook issued on July 31, 2012.

Epson has also revised its year-end dividend outlook for the same fiscal year announced on April 27.

1. Revised financial results outlook

(1) Revised full-year outlook (April 1, 2012, to March 31, 2013)

(Unit: billion yen, except where stated otherwise)

  Net sales Operating
income
Ordinary
income
Net income Net earnings
per share (yen)
Previous
outlook (A)
(July 31, 2012)
870.0 28.0 28.0 5.0 27.95
Revised outlook (B) 850.0 18.0 16.0 -15.0 -83.85
Change (B-A) -20.0 -10.0 -12.0 -20.0 -
Change (%) -2.3% -35.7% -42.9% - -
Reference:
Previous year
(ended March 2012)
877.9 24.6 27.0 5.0 26.22

(2) Reasons for revision

Both the global economy and Epson's markets are suffering from ongoing uncertainty. Affected by the European financial crisis, the recovery in the developed economies of Europe and North America looks to be slowing, while growth in emerging economies such as China, which in recent years have driven global economic growth, has begun to cool down.

Against this background, Epson anticipates reduced net sales in its core information-related equipment business. We also forecast a shortfall in operating income as we have been unable to meet cost cutting targets for certain products, despite a concerted effort to reduce costs companywide.

Epson also expects to post a net loss for the full year. In addition to the circumstances mentioned above, this is a result of the second quarter extraordinary loss associated with the settlement of a lawsuit, a valuation difference on available-for-sale securities resulting from share price declines at the end of the period, and because of the impact of tax effect accounting.

2. Revised year-end dividend outlook

(1) Revised year-end dividend outlook (April 1, 2012, to March 31, 2013)

(Unit: Yen)

  Dividend per share
Interim (2Q) Year end Total
Previous outlook
(April 27, 2012)
13.00 13.00 26.00
Current outlook - TBA TBA
Actual 13.00 - -
Reference: Previous year
(ended March 2012)
13.00 13.00 26.00

(2) Reasons for revision

Epson has decided to postpone a decision on the amount to be paid for the year-end dividend. This is because of the expected net full-year loss and the increasing uncertainty of the business environment. We will make a final decision based on Epson's ongoing business results and financial situation.

We will pay an interim dividend of 13 yen per share as announced in our previous forecast.


About Epson
Epson is a global imaging and innovation leader whose product lineup ranges from inkjet printers and 3LCD projectors to sensors and other microdevices. Dedicated to exceeding the vision of its customers worldwide, Epson delivers customer value based on compact, energy-saving, and high-precision technologies in markets spanning enterprise and the home to commerce and industry. Led by the Japan-based Seiko Epson Corporation, the Epson Group comprises more than 81,000 employees in 97 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/