Epson hit by supply chain constraints
October 29, 2021
The OEM reported an increase in revenue and profit, and office and home inkjet printer sales up 4%, despite component shortages and logistics disruptions.
Epson Q2 results showed a 9.2% year-on-year increase in revenue at ¥268.4 billion ($2.52 billion/ €2.12 billion). Profit for the same period was ¥19.0 billion ($167 million/ €143 million), up ¥14.5 billion ($127 million/ €109 million) on the same period last year.
The company noted that in this quarter, “component shortages, logistics disruptions and further increases in component prices pose a threat to the Chinese and other parts of the global economy”.
Epson said that “although market conditions remain touch in some regions, such as Southeast Asia due to the pandemic, a recovery progressed in Europe, the Americas, and Japan.” Epson added: “Demand for home printing remained brisk, though it settled down compared to the same period last year.”
Office and home inkjet printer unit sales edged up very slightly with a 4% increase in the quarter compared to the same period last year, when Epson’s manufacturing sites in Southeast Asia temporarily shut down. The main reason for the lack of growth, according to Epson, was that the product supplies were constrained by component shortages and logistics disruptions.
On the other hand, revenue increased due to the effects of price measures and increased sales of high-capacity ink tank models in developed economies. Revenue for the Printing Solutions segment was recorded at ¥183.2 billion ($1.61 billion/ €1.38 billion), a 10.2% growth compared to the same period last year.
Epson said that ink sales decreased after spiking in the same period last year, but the company continued to see at-home print demand. Office shared printers are a growth area, Epson continued.
Epson slightly lowered its full year outlook by ¥20 billion ($176 million/ €151 million), forecasting ¥1,130 billion ($9.9 billion/ €8.5 billion) in revenue.
Categories : City News
Tags : Business Epson Financials OEM
