Notice of Revised First Half and Full-Year Financial Results Outlook and Notice of Non-Operating Expenses

 

- TOKYO, Japan, July 31, 2013 -

Seiko Epson Corporation (TSE: 6724, "Epson") today revised its full-year (April 1, 2013, to March 31, 2014) financial results outlook announced on April 30, 2013.
Epson also announced it had recorded non-operating expenses.

1. Revised financial results outlook

(1) Revised first half financial results outlook (April 1, 2013, to September 30, 2013)

(Unit: billion yen, except where stated otherwise)

  Net sales Operating
income
Ordinary
income
Net income Net income
per share (yen)
Previous outlook (A) 430.0 3.0 1.0 -5.0 -27.95
Revised outlook (B) 450.0 13.0 9.0 1.0 5.59
Change (B-A) 20.0 10.0 8.0 6.0 -
Change (%) 4.7 333.3 800.0 - -
Reference:
Previous year
(ended March 2013)
388.273 -14.142 -14.193 -35.447 -198.15

(2) Revised full year financial results outlook (April 1, 2013, to March 31, 2014)

(Unit: billion yen, except where stated otherwise)

  Net sales Operating
income
Ordinary
income
Net income Net income
per share (yen)
Previous outlook (A) 910.0 33.0 30.0 13.0 72.67
Revised outlook (B) 930.0 37.0 33.0 15.0 83.85
Change (B-A) 20.0 4.0 3.0 2.0 -
Change (%) 2.2 12.1 10.0 15.4 -
Reference:
Previous year
(ended March 2013)
851.297 21.255 17.629 -10.091 -56.41

(3) Reasons for revision

Epson expects first half net sales and income in each category to exceed the previous forecast, with first half profitability boosted by the effects of the weakened yen. In information-related equipment, the company will benefit from better than forecast sales of high-capacity ink tank printers in emerging economies, increased net sales of inkjet printer consumables driven by an increase in the number of office inkjet printers in operation in North America, and steady sales of inkjet printer consumables in Europe. In devices and precision products, the company forecasts positive effects from expanded sales of semiconductors and watches, and reduced fixed costs.

In the second half, Epson reiterates its previous net sales forecast but expects reduced profitability in each income category. This will be the result of expenses associated with increased sales of high-capacity ink tank printers, efforts to boost sales of the office inkjet printers that will drive consumables growth, slowing demand for certain applications in the devices and precision products segment, the effects of the slowdown of the Chinese economy, and the delayed recovery of the economy in Europe.

For these reasons Epson will raise its previously stated full-year outlook (see table 2. above).

2. Non-operating expenses

Epson will post non-operating expenses of 3.714 billion yen. This is caused in part by losses incurred on forward exchange contracts concluded in advance of recent fluctuations in the foreign exchange market.


About Epson
Epson is a global innovation leader whose product lineup ranges from inkjet printers and printing systems, 3LCD projectors and industrial robots 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 68,000 employees in 96 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/