FUJIY Reports Weak 3Q - Analyst Blog

By
A A A

On January 30, 2012, Fujifilm Holdings Corporation ( FUJIY ) reported its financial results for the third quarter of fiscal year 2012. The company reported a net income of ¥8.8 billion ($11.4 million), down 51.4% from ¥18.1 billion ($21.9 million) in the prior-year quarter. The results reflected negative impact of yen appreciation, surging raw material cost and demand decrease in Europe.

Revenue

Revenue in the third quarter inched down 2.1% year over year to ¥535.1 billion ($6.9 billion). The decrease was due to depressed results from the company's three operating segments, which was affected by 3% decrease in domestic sales, despite new product launch and promotional programs.

Revenues from the Imaging Solutions segment reached ¥86.4 billion ($1.1 billion), down 5.3% year over year. Revenue from the Information Solutions segment decreased 1.0% year over year to ¥211.6 billion ($2.7 billion) in the reported quarter. Revenues from the Document Solutions reached ¥237.2 billion ($3.1 billion), down 1.8% year over year.

Of the total revenue, domestic revenue accounted for 45.3% while international revenue came in at 54.7%.

Margins

As a percentage of revenue, cost of sales in the third quarter inched up 1.8% year over year and gross margins stood at 39.4% versus 41.2% in the year-ago quarter. SG&A and R&D expenses together accounted for 34.4% of total revenue. Operating margin fell from 6.7% in the year-ago quarter to settle at 5% in the quarter.

Balance Sheet

Cash, cash equivalents and marketable securities exiting the third quarter, registered a decrease of 23.3% over the quarter ended March 31, 2011. Property, plants and equipments plummeted 3.7% over the quarter ending March 31, 2011.

Long-term debt of the company stood at ¥124.0 billion ($1.6 billion) in the reported quarter ended December 31, 2011, up 3.9% in the quarter ended March 31 2011.

Cash flow

Net cash provided by operating activities for nine months ended December 31, 2011, decreased 42.3% year over year to ¥69.1 billion ($0.9 billion).

Fujifilm is a leading global producer of photographic imaging products. The company develops, manufactures, and markets traditional and digital imaging products competing with peer such as, Canon Inc. ( CAJ ).

We currently hold a Neutral recommendation on the stock. Fujifilm has a Zacks #4 Rank, implying a short-term (1-3 months) Sell rating.


 
CANON INC ADR ( CAJ ): Free Stock Analysis Report
 
FUJIFILM HLDGS ( FUJIY ): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: CAJ , FUJIY

Zacks.com

Zacks.com

More from Zacks.com:

Related Videos

Stocks

Referenced

50%

Most Active by Volume

43,234,445
  • $16.21 ▼ 21.73%
17,994,380
  • $118.83 ▲ 1.05%
15,739,284
  • $77.5299 ▲ 2.51%
14,773,505
  • $40.93 ▲ 0.44%
13,307,025
  • $38.985 ▲ 3.60%
12,142,099
  • $24.03 ▲ 0.38%
11,481,486
  • $41.271 ▲ 3.80%
11,424,419
  • $10.744 ▲ 3.41%
As of 11/26/2014, 11:30 AM

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com