For the six months ending 30 September, sales fell 1.1% to ¥988.2 billion ($8.7 billion) with declines across all international operating regions, including a fall of 10% in the Other segment, which covers China, Southeast Asia and Oceania. Despite this, pre-tax profit dramatically increased 181.8% to ¥50 billion, as SG & A decreased due to structural reforms conducted last year.
In its Office Printing segment, a decline of 5.5% in international sales, mainly in hardware and related supplies, resulted in sales falling 3.7% to ¥538.5 billion. Restructuring and a focus on profitable sales resulted in an increase of 12.9% in operating profit to ¥57.2 billion.
In the Office Services division, double-digit domestic growth of 12.5% helped push sales 9.1% higher to ¥231.3 billion. Operating profit showed a huge improvement, rising from a ¥2.5 billion loss in H1 2017 to a profit of ¥6.2 billion for the first half of this year. The company said the boost was due to expanded IT services and business-specific solutions sales centred in Japan and the US.