Global suppliers of printers and MFDs have not been spared by COVID-19.

 

Kyocera

 

Sales at Kyocera’s document solutions group plunged by 31 per cent in the three months to June 30 to US$570 million. The division’s operating profit dropped by nearly 80 per cent. 

 

“First-quarter sales revenue and profits both declined as compared to the prior-year period due to weaker demand in major markets, reflecting global economic stagnation caused primarily by the COVID-19 pandemic,” the company said.

 

The company added: Based on our continued assumption that major markets will gradually recover toward the end of fiscal 2021, the company is making no change at this time to the original forecasts for the year ending March 31, 2021.”

 

Canon

 

Sales also fell by around 30 per cent at Canon, whose office unit reported a marginal loss of US$10 million.

 

Multifunction devices were down by 40 per cent while sales of laser printers and products fell by around 28 per cent. Canon said that demand in China had recovered, with sales in May and June in line with those of last year.

 

In a shrinking market, Canon said it will also be supporting its OEM partner – HP – as it rolls out a business model in the laser printer category that bundles hardware and consumable sales into a blanket contract.

 

In developed countries and China, inkjet sales grew increased due to expanding demand as a result of remote working and schooling. Consequently, overall unit sales were above those of last year for the same period.

 

Inkjet sales for the second half of the year are expected to be buoyed by consumables for newly-acquired printers, but Canon said it still expects this segment to contract in the medium-to-long term.

 

Canon said the impact of COVID-19 in the latest quarter represented a US$198 billion hit on the top line and US$66 billion on operating profit.

 

Xerox

 

Xerox’s Q2 sales fell by about 35 per cent to US$1.46 billion with equipment sales down by 38 per cent to US$310 million.

 

Supplies and paper fell by 48.1 per cent to US$150 million and services and rentals by 31.6 per cent to US$949 million.

 

“We experienced some signs of recovery, and a moderation in our rate of revenue declines during the month of June. However, we expect that our business will continue to be impacted by the on-going uncertainty. Accordingly, we now expect a slower pace of gradual recovery in the second half of the year,” the company said.