Net Sales and Income up for Konica Minolta's First Half; Business Technologies Sales Drive Growth
For the second half of its current fiscal year (April to September 2014), Konica Minolta of Tokyo reported net sales up 6.2 percent to 478 billion yen, and net income up 164.2 percent to 14 billion yen, both versus the same half-year a year ago.
In its Business Technologies Business, office A3 color MFPs posted “solid results,” with sales volume expanding versus the same period of the previous fiscal year. In Europe and the United States, hybrid‐type sales that combine MFPs with IT services produced good results, particularly in the United States. In the commercial/industrial print field, the effect of new products made a contribution to results, and sales volume of digital printing systems grew year-over-year. Strong sales continued in the inkjet business, particularly for inkjet print heads for industrial use.
Overall, the firm says sales growth in the Business Technologies Business drove momentum for the entire company.
Results for A3 color MFPs remained solid, with sales volume expanding year-over-year in all regions. Hybrid‐type sales produced good results on the back of continued marketing efforts mainly in Europe and the United States. In particular, the firm says it made progress in integrating the sales team for MFPs, which it reorganized by business type, and the sales team from an IT services company that Konica Minolta acquired. This has led to an increasing number of successful sales that included cultivating major new customers by leveraging solutions, and services, as well as securing major contracts in IT services.
Outlook for Fiscal Year Ending March 31, 2015
Konica Minolta is forecasting a continued business expansion for its Business Technologies Business as a result of a moderate business recovery in the office-services market and commercial/industrial print market. For its Healthcare Business, it expects favorable conditions to continue overseas, as well as moderate recovery in willingness to invest on the part of medical institutions following stagnation in Japan.
In the company’s Industrial Business, the sensing field within the industrial optical systems field is expected to be affected by a decline in demand for new products in the mobile-equipment market, especially smartphones and tablets, while lenses for industrial and professional use are expected to be affected by tough market conditions. In the performance materials field, the business environment for TAC films is forecast to be robust until the end of the year on the back of solid demand in the TV market, but demand is expected to decrease after the new year due primarily to seasonal factors.
Konica Minolta also revised its financial forecasts for its entire fiscal year ending March 31, 2015, forecasting net sales to be 10.0 percent higher than previously forecast, and increasing its net income forecast from 51.51 billion yen to 59.37 billion yen.