Overall, the global economic recovery was muted during the first quarter of the year under review, though there were signs of a bottoming out. Regionally, the U.S. economy recovered at a gradual pace, getting a boost from improved unemployment figures and a rise in consumer spending, among other factors. In Europe, unemployment rate rose and overall economic activity was weak, but pockets of relatively steady activity in areas such as manufacturing and exports signaled a bottoming out of the economy.
The average exchange rates of the yen against the U.S. dollar and of the yen against the euro during the first quarter of the year under review were ¥98.76 and ¥128.95, respectively. This represents 23% depreciation in the value of the yen against the dollar and 25% depreciation in the value of the yen against the euro, year-overyear Consolidated first-quarter net sales were ¥220,188 million ($2,233,370 thousand), up 18.2% year over year.
Operating income was ¥8,010 million ($81,245 thousand), compared to a ¥16,117 million loss recorded in the same period last year. Ordinary income was ¥4,846 million ($49,153 thousand), compared to a ¥16,483 million loss recorded in the same period last year. Net income was ¥125 million ($1,267 thousand), compared to a net loss of ¥34,467 million in the same period last year.
In Asia, the tempo of Chinese economic expansion maintained a slow beat, while the Indian economy continued to gradually decelerate. Elsewhere in Asia, the economies of the ASEAN region picked up primarily due to internal demand, while South Korea and Taiwan stayed in a holding pattern. The Japanese economy, meanwhile, steadily rallied, in part due to the effects of an improved export environment owing to the weakening of the yen and in part due to economic measures.
The situation in the main markets of the Epson Group ("Epson") was as follows. Inkjet printer demand, on the decline in Europe and Japan, looks to have bottomed out in the Americas. In largeformat inkjet printers sales of low-end models were solid, but demand for high-end models was sluggish in the face of constrained corporate spending.
The markets for serial-impact dot-matrix (SIDM) printers shrank in the U.S., Europe, and Japan but grew in China due to infrastructure investment. POS system product shipments to Southeast Asia and to small and medium-sized retailers in the Americas were solid during the period owing to an upswing in capital expenditure. In Europe, however, sales were moderated by belt-tightening in the face of continued economic sluggishness. Projector demand was steady in Japan, the Americas, and Asia.
In Europe, however, demand remained slack as businesses reduced their investment budgets amid the economic slowdown. The main applications for electronic devices were a mixed bag, with some product categories enjoying strength while others experienced weakness. Smartphone demand continued to expand, while conventional mobile phone demand continued to decline. In the PC market, sales of tablets were favorable, but demand for notebook and desktop models contracted. In the digital camera market, compact camera sales remained sluggish.
