Japan’s Ricoh to Book $1.72bn Impairment Loss as North American Business Slumps

Some news coming out of Japan from Nikkei.com can be found bowl. Ricoh has responded to the article with the following statement:

Ricoh Company, Ltd. (Ricoh) filed a report with the Tokyo Stock Exchange on March 23 regarding impairment losses arising from the value of a number of prior acquisitions. This announcement has absolutely no impact on our customers or partners and we remain committed to delivering trusted, secure and competitive solutions that empower digital workplaces and enable our customers to drive their business forward. We are, and remain, a trusted and reliable partner to over a million customers worldwide.   

In “RICOH Resurgent,” Ricoh’s 19th Mid-Term Management Plan, Ricoh set out to prioritize structural reforms, expand growth businesses, and to reinforce its management systems. The structural reforms are on schedule and Ricoh has succeeded in expanding its value proposition. As a result, Ricoh confidently launched its growth strategy, “RICOH Ignite,” on February 6, with three main strategies. To ensure their successful execution Ricoh reset its business management units based on its six business domains, and as a result of the outlook of each unit, we found that we needed to impair the value of some of these assets. 

As part of “RICOH Ignite,” Ricoh announced its plan to invest 200 billion yen in M&A to aggressively pursue new growth businesses. Ricoh is confident that this re-alignment of our business is setting the stage for a V-shaped recovery and long term sustainable growth. 

The following appears on Nikkei.com

TOKYO (Reuters) — Japanese office equipment maker Ricoh Co Ltd on Friday said it would book an impairment loss of 180 billion yen ($1.72 billion), citing a slump in North American business as users shift from print to digital.

As a result, the firm cut its earnings estimates for the fiscal year ending this month, saying it now expected to book an operating loss of 160 billion yen, a significant cut from its previous forecast of a 20 billion yen operating profit.

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