Ricoh announces revision of forecast of consolidated operating results for the fiscal year ending March 31, 2012 and of expected dividends, initially projected in the second quarter report dated on October 28, 2011, as follows.
1． Revision of forecast of Ricoh’s consolidated operating results for the fiscal year ending March 31, 2012（from April 1, 2011 to March 31, 2012）
(Billions of yen)
per share (yen)
|Forecast announced in
October 2011 (A)
|Current forecast (B)||1,900.0||-18.0||-33.0||-46.0||-63.40|
fiscal year ended March
2．Background of revision
3．Revision of expected dividends
We have announced of year end dividends in amount of 16.5 yen per share, and 33.0 yen per share in total adding interim dividend already paid in December 2011. However, we regrettably revise our forecast of year end dividends to 8.5 yen per share considering forecasted net losses for the fiscal year.
4．Impairment of Goodwill for Production Printing business
In accordance with U.S. GAAP, Ricoh performs an annual impairment test of goodwill at December 31, which is the annual goodwill impairment test date, instead of amortizing goodwill.
U.S. GAAP requires a company to evaluate fair value of each reporting unit including goodwill. In addition, a company is required to perform a reconciliation of the aggregate fair value of reporting units and market capitalization at the goodwill impairment test date.
The annual goodwill impairment test has not been completed yet. However, we considered it is probable that the goodwill assigned to Production Printing reporting unit is impaired, due to decline of Ricoh's market capitalization. As such, we recognized the best estimate of the impairment loss in the third quarter financial statements.
Ricoh positions Production Printing business as growing business in the medium term. The business was negatively affected by the financial crisis in 2008, especially in the U.S. However, Ricoh is proceeding with enforcement of marketing function by global strategic cooperation with Heidelberger Druckmaschinen AG in Germany which was agreed upon last year in 2011, enlargement of product line up such as RICOH Pro C751, worldwide reorganization by establishment of Ricoh Production Print Solutions in the U.S. and Ricoh forecasts drastic profitability improvement of Production Printing business in the future.