The Recycler
  • Katun web banner December 2022 NEW
  • G&G Feb 24 Masthead Banner
  • Biuromax Masthead web banner March 2024

Speculation over “underperforming” Ricoh operations

February 23, 2018

A newspaper article has cast doubts over Ricoh’s financial position, although the OEM has rebutted it.

The Nikkei Asian Review has reported that Ricoh is contemplating booking up to ¥100 billion ($936 million/€761 million) in impairment losses on what it calls its “underperforming North American operations.”

These apparently include the American distributor Ikon Office Solutions, bought by the OEM in 2008. The newspaper puts the issue down to the falling demand for printers and copiers in the key Ikon markets of North America and Europe, as a result of businesses moving towards digitalisation, from paper.

Although Ricoh is reportedly expecting “to break even on a net basis” come the end of this financial year, Nikkei Asian Review suggests that “logging an impairment loss may well plunge it into the red.”

Another suggestion as to the root of the cause involves the ongoing MFP boom: “In a way, printer makers have hamstrung themselves with their technological advances. The improving capabilities of multifunction devices – which perform some combination of printing, copying and scanning – mean offices need fewer of them.”

Last year, Ricoh began a restructuring plan that led to 5,000 job cuts, mostly in the United States. According to Nikkei Asian Review, “the company has also stopped financial support to a money-losing Indian arm, and is working to rebuild assets by selling of shareholdings.”

Although the industry itself has realigned greatly recently, with the ongoing Fujifilm-Xerox partnership, and the recent deal between HP and Samsung, Ricoh has thus far kept its changes in-house. For example, the OEM announced its intention recently to offload its stake in Coca-Cola Bottlers Japan Holdings, a local distributor for the soft drink giant.

Yet Ricoh has since responded to the article, implying it is mainly conjecture. In a company statement issued following the original article’s publication, the OEM declared that it was “in the process of conducting its annual impairment accounting tests in accordance with good standard accounting practice.”

The statement continued: “The results of this process are not yet available, so the requirement for any impairment remains unknown at this time. If we need to make any announcements in this regard, we will do so in a timely manner.”

 

Categories : City News

Tags : Financial Ikon Nikkei Asian Review North America Ricoh

  • G&G Big & Bold Web banner January 2024
  • GM Technology Web Ad March 2024
  • Ink Tank Web Ad March 2024
  • IR Italiana Web ad January 2021
  • Static Control June 2022 Big & Bold Ad
  • Mito Web advert July 2023
  • TN Group Web ad March 2024
  • Aster Feb 2024 Web Ad
  • Biuromax March 2024 Banner
  • Apex Web Ad March 2024
  • Cartridge Web Ad March 2024
  • Zhono Web ad March 2024
  • PCL Feb 2024 Web Ad
  • HYB Web banner Jan 2024
  • ITP Web ad January 2021
  • Altkin Web ad March 2024
  • Denner Feb 2024 Web Ad
  • CET Web ad December 2023
  • Zhono Web ad March 2024
  • Altkin Web ad March 2024
  • CET Web ad December 2023
  • ITP Web ad January 2021
  • HYB Web banner Jan 2024
  • Denner Feb 2024 Web Ad
  • PCL Feb 2024 Web Ad
  • Denner Feb 2024 Web Ad
  • HYB Web banner Jan 2024
  • CET Web ad December 2023
  • Altkin Web ad March 2024
  • ITP Web ad January 2021
  • PCL Feb 2024 Web Ad
  • Zhono Web ad March 2024

The Recycler, Wittas House, Two Rivers, Station Lane, Witney, OX28 4BH, United Kingdom | Tel: +44 (0) 1993 899800 | Fax : +44 (0) 1993 226899
©2006-2023 The Recycler - Terms & Conditions - Privacy Policy including cookie use

Web design Dorset | Websites by Mark

The Recycler Subscribe Web ad January 2021
The Recycler Subscribe Web ad January 2021