Fuji Xerox May Miss Fiscal 2013 Revenue Target, President Says
Fuji Xerox Co., Japan’s biggest maker of color printers, may miss its sales target for the next fiscal year because of slowing demand.
“Even if we manage to achieve our earnings plan this fiscal year, it will still be quite hard for us to boost sales enough to reach the target,” President Tadahito Yamamoto said in an interview today. He was referring to the closely held company’s revenue estimate of 1.1 trillion yen ($13 billion) for the year starting April 1.
Business is slowing in China, where the Tokyo-based company suspended a new television commercial featuring Hong Kong film actor Tony Leung, Yamamoto said. The easing sales in China add to uncertainty about the company’s business outlook after corporate clients in mature markets began investing at a slower pace, he said.
“There are still measures such as making an acquisition” that can help the company meet the goals, he said. Fuji Xerox, which doesn’t have a specific target in mind, would consider a deal “if there is an opportunity,” he said.
The copier maker, 25 percent owned by Norwalk, Connecticut- based Xerox Corp. (XRX), is aiming at an operating margin of 10 percent or more and revenue of 1.1 trillion yen in the year ending March 2014, it said in October 2011.
Fuji Xerox completed an acquisition of a business process outsourcing division from North Sydney-based Salmat Ltd. (SLM) for A$375 million ($395 million) in October this year.
Sales fell 3.3 percent to 247.2 billion yen in the three months ended Sept. 30, Fuji Xerox said Oct. 31. Operating profit, or sales minus the cost of goods sold and administrative expenses, dropped 33 percent to 17.1 billion yen during the period, the company said.
Even after second-quarter revenue and profit declined, the office-equipment maker aims to boost both revenue and profit for the year ending March 31, the president said.
“Earnings from document solution services in Japan are higher than our expectation,” Yamamoto said. “Cost-reduction measures will show a bigger effect in the fiscal second half” started Oct. 1, he said.
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