Ricoh announced impairment losses in the fourth quarter of fiscal 2020
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Ricoh Company, Ltd., announced that the company allocated the following impairment losses in the fourth quarter of fiscal 2020, ended March 31, 2021.
Ricoh recorded a fourth-quarter impairment loss of 1 million USD (16,161 million yen) on property, plant, and equipment and intangible assets (including development assets) in selling, general and administrative expenses. This stemmed from impairment testing based on International Financial Reporting Standards (IFRS) for property, plant and equipment and intangible assets (including development assets) in the commercial printing business. A reduced customer investment appetite amid an increasingly uncertain outlook in the commercial printing industry owing to the COVID-19 pandemic has hampered that business. In the third quarter, the company recorded an impairment loss on some assets, including goodwill from past acquisitions.
Ricoh shifted to a business unit structure in April 2021 to maximize corporate value by stepping up its transition into a digital services company. Each unit operates independently under an integrated development, production, and sales structure. The Company has accordingly executed plans to reorganize production, converting some domestic plants for office printing products to serve commercial and other printing products. Reviewing allocations of related overhead costs and reflecting them in forward-looking plans will mean posting envisaged earnings later than planned for third-quarter impairment testing.