Epson 2014 Annual Report Download - page 22

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A breakdown of the financial results for each reporting segment is provided below.
Please note that, effective from the first quarter of the 2013 fiscal year, some of the product categories
within existing segments were spun off to create new segments. The main change is that factory automation
equipment, industrial inkjet printing systems, and sensing systems equipment, which were formerly
included in the information-related equipment segment, devices and precision products segment, and
corporate segment, were spun off to create the new sensing and industrial solutions segment. The optical
products business, which was included in the devices and precision products segment last fiscal year, was
transferred and herein is included in the corporate segment.
Information-Related Equipment Business Segment
Net sales in the printing systems business increased. All categories of products benefited from foreign
exchange effects.
Net sales in the inkjet printer business as a whole were higher due to increased shipments of high-capacity
ink tank models and to higher average selling prices, despite a decline in ink cartridge printer shipments.
Net sales from consumables also rose, as unit shipments increased.
Large-format printer net sales increased due to a rise in average selling prices accompanying increased
sales of high-end units and consumables. Page printer net sales decreased due to a decline in unit shipments,
the result of Epson’ s focus on selling high-added-value models. SIDM printer net sales increased owing to
steady demand in China, where these printers are used in tax collection systems. POS system printer net
sales rose due to an increase in unit shipments in the Americas.
Net sales in the visual communications business increased. Foreign exchange effects were a positive factor
here, as well.
Business projector net sales climbed. The increase was fueled by strong sales in the Americas and China,
which brought about unit shipment growth. Home-theater projector net sales also grew, mainly on higher
unit shipments in Japan and China.
Segment income in the information-related equipment segment increased due to foreign exchange effects
and increased sales of core products.
As a result of the foregoing factors, net sales in the information-related equipment segment were ¥836,436
million ($8,127,050 thousand), up 22.0% year over year, while segment income was ¥121,531 million
($1,180,829 thousand), up 134.9% year over year.
Devices and Precision Products Business Segment
Net sales in the micro-devices business declined.
Crystal device net sales declined as a whole despite foreign exchange effects, as tuning-fork crystal unit
shipments shrank in conjunction with soft demand from the mobile phone market, crystal prices continued
to erode, and opto-device sales to digital camera manufacturers decreased. Foreign exchange effects caused
semiconductor net sales to increase despite negative factors such as plunging microcontroller unit prices.
Net sales in the precision products business increased owing to factors such as increased sales of premium
watches, which lifted average selling prices, and foreign exchange effects.
Segment income in the devices and precision products segment increased. This increase was due not only
to the effects of foreign exchange on the segment as a whole but also to the effect of cost reductions in the
micro-devices business.
As a result of the foregoing factors, net sales in the devices and precision products segment were ¥148,956
million ($1,447,298 thousand), up 5.8% year over year, while segment income was ¥9,733 million
($94,568 thousand), up 12.7% year over year.
Sensing and Industrial Solutions Business Segment
Net income in the sensing and industrial solutions segment increased.
In factory automation systems, industrial robot net sales grew on increased orders from Asia, while IC
handler net sales grew on increased orders from manufacturers of semiconductors for smartphones.
Segment income in the sensing and industrial solutions segment was negative, as industrial robot and IC
handler income growth was outstripped by widened losses in industrial inkjet printing systems and sensing
systems.
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