Consolidated Financial Results (3rd Quarter Fiscal 2006 Earnings)

Billions of yen
  Three months ended December 31, 2005 Three months ended December 31, 2004 Change
Amount %
Revenue Domestic 48.4% 330.1 50.9% 325.9 +4.2 +1.3
Overseas 51.6% 351.6 49.1% 314.1 +37.5 +11.9
Total 100.0% 681.7 100.0% 640.0 +41.7 +6.5
Operating Income* 6.1% 417 6.8% 43.6 (1.9) (4.4)
Income before Income Taxes* 6.8% 46.4 5.9% 38.0 +8.4 +21.9
Net Income* 4.0% 27.1 3.2% 20.8 +6.3 +30.4
Exchange Rate US$ ¥117 ¥106 +¥11
Euro ¥139 ¥137 +¥2
  • * Operating income, income before income taxes and net income for 3 months of FY2005 include a one-time gain on transfer of the substitutional potion of Fuji Xerox's employee pension fund liabilities.

Revenue

Consolidated revenue during the third quarter of the Company's fiscal year (October 1, 2005, to December 31, 2005) amounted to ¥681.7 billion, up 6.5% from the same period of the previous fiscal year.
Although sales of color films and digital minilabs declined as a result of weakening demand, sales of flat panel display materials showed a substantial increase along with expansion in the production capacity for these materials. Other developments supporting growth in sales were the expansion in the supply volume for digital multifunction devices and office printers, especially low-priced models, contributions from newly acquired companies that were included within the scope of consolidation in the previous fiscal year, and the positive impact of the depreciation of the yen against the U.S. dollar.

Income

Regarding operating income, although the Company adopted measures to cut costs by improving manufacturing efficiency, lowering procurement costs, and more tightly focusing spending in strategic areas, overall costs, including selling, general and administrative expenses, increased because of the higher prices of principal raw materials, more spending on R&D to develop new products and businesses, start-up costs related to the Fuji Xerox's introduction of new core information systems, and general expenses associated with strengthening overseas sales capabilities in document solutions. As a consequence, operating income declined 4.4%, to ¥41.7 billion. However, foreign exchange gains on settlement and translation of foreign currency-denominated receivables and payables were recognized in this quarter, while foreign exchange losses were recognized in the same quarter of the previous fiscal year. As a result, income before income taxes and net income increased 21.9% to ¥46.4 billion and 30.4% to ¥27.1 billion, respectively.

Consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America.

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