Seiko Epson posts group operating profit

Seiko Epson Corp. posted a group operating profit in the April-June quarter for the first time in two years, thanks to a turnaround in demand for printers and electronic parts, according to JPEA Photo Electro News.

The company earlier had anticipated an operating loss for the quarter, but it posted 10.73 billion yen (US$126.3 million) in operating profit, compared with a loss of 12.4 billion yen (US$140.9 million) a year ago. Total sales rose 12.1 percent year-on-year to 239.2 billion yen (US$2.8 billion).

Demand for its mainstay inkjet printers and other IT-related devices showed a moderate recovery in North America, while sales in Asia were brisk, in China in particular. The Information Equipment division sales notched up 8.8 percent to 170.1 billion yen (US$2.0 billion) with operational profit of 18.76 yen (US$220.7 million). It also benefited from strong performance of its electronic device business. Sales of chips for digital cameras and other consumer electronics were brisk, while demand for its quartz oscillators was favorable. The Electronic Device division sales came to 60.36 billion yen (US$710.0 million), an 18.7 percent gain. It posted a division loss of 5.98 billion yen (US$70.4 million).

For the April-September half, the company expects a group operating loss of 3 billion yen (US$34 million), an improvement from the year-ago operating loss of 9.3 billion yen (US$105.7 million). But the forecast for the first half is now likely to be upgraded. On the other hand, the company is now considering its assumed euro-yen rate for the current fiscal year to around 110 yen. This alone could potentially push down its operating profit by around 16.5 billion yen (US$187.5 million). But the company hopes to realize the goal of breaking even in the current year through March 2011. It ended the previous fiscal year with a net loss of 19.7 billion yen (US$224 million).