By Mariko Yasu and Maki Shiraki
June 2 (Bloomberg) -- Seiko Epson Corp.
rivals may raise prices
in Europe later this year as the weaker
starts to erode earnings
, the company’s president said.
“We may follow such a move to raise our prices, or we may
seek to take a bigger market share
without a price increase
President Minoru Usui
said in an interview
16 percent against the yen
pressuring Japanese exporters’ profits
. Seiko Epson, which made
23 percent of its revenue
in Europe in that ended in March 31,
loses 1.1 billion yen ($12 million) of annual operating profit
for every yen the Japanese currency
strengthens against the euro.
Operating profit at Canon Inc.
, the world’s biggest office
equipment maker, is cut by 4.6 billion yen for each 1-yen
appreciation against the euro.
The Suwa, Japan
-based maker of inkjet printers and
electronic devices is forecasting
that it will break even in the
year ending March 2011, after recording
two consecutive annual
deficits. The company handed
to Sony Corp.
at no cost
in April to shift its focus
away from money-losing component businesses.
Seiko Epson won’t likely see ‘a serious impact’ from euro
fluctuations because of last year’s restructuring, said Usui, 55.
Improving demand for printers in the U.S. and profits from its
businesses in developing countries including China
lessen the euro’s blow, he said.
Seiko Epson rose 1.4 percent to 1,239 yen
as of 10:01 a.m.
in Tokyo trading
, narrowing its decline
this year to 17 percent.
Japan’s benchmark Nikkei 225 Stock Average
slid 0.8 percent.
For Related News and Information:
Seiko Epson’s Financial History: 6724 JP CH
Seiko Epson’s share performance: 6724 JP GP
Most-read technology news: MNI TEC
-- Editors: Chana Schoenberger
, Ian Rowley
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