Healthy Growth for Konica Minolta, as Business Technologies Business Drives Sales

new konica minolta imageFebruary 2, 2015 – Konica Minolta Group of Japan reported results for its first three quarters of its fiscal year (the nine months from April 1 – December 2014). Net sales for the nine months were ¥733.8 billion, a 7.5 percent increases, and net income was ¥21.9 billion, an increase of 103.4 percent,  both versus the nine months a year ago. Konica Minolta says its Business Technologies Business was the “primary driver behind the sales growth,” and that it also benefited from the positive effects of a weaker Japanese yen.

Business Technologies Business

Office Imaging

Sales volume of A3 color MFPs expanded as hybrid‐type sales that combine MFPs with IT services became more pervasive, particularly in the European and U.S. markets. Sales related to services and solutions are also increasing steadily. In the commercial/industrial print field, sales of digital color printing systems for production print businesses expanded at a “good rate,” led by new products. Results for A3 color MFPs remained solid, with sales volume expanding year-over-year in all regions. Konica Minolta says it’s seeking to increase hybrid‐type sales that include IT services, especially in the European and U.S. markets, while in MCS (Managed Content Services), which entails entering into a customer’s business process and optimizing the company’s content management, the company says it’ll seek to accelerate global development, as well as further strengthen initiatives in the leading U.S. market.

Commercial and Industrial Printing

Sales volume of color units exceeded the same period of the previous fiscal year due to solid performance mainly in new products such as bizhub PRESS C1100 and bizhub PRESS C1085 digital printing systems. In MPM (Marketing Print Management) services, which support the optimization of printing material costs and the improvement of business processes in a company’s marketing department, Konica Minolta  worked to strengthen its services by concluding a sale and purchase agreement related to the acquisition of Indicia Group Limited (headquartered in the United Kingdom), which specializes in the planning and execution of cross‐media communications strategy in combination with printed materials and digital media, through Charterhouse PM Ltd. (also headquartered in the United Kingdom).

Strong sales continued in Konica Minolta’s industrial inkjet-printing business, particularly sales of inkjet print heads.

As a result of these factors, net sales of the Business Technologies Business to outside-of-Japan customers was at ¥589.5 billion, up 10.5 percent year-over-year, and operating income was at ¥48.8 billion, up 7.9 percent year-over-year. Konica Minolta says the increase in sales of color units centering on the service-provision capabilities, an increase in gross profit in line with this, as well as the impact of the weak yen contributed to higher sales and profit in this segment.

Healthcare Business

In Konica Minolta’s Healthcare Business, despite solid performance in North America, China, and India, conditions remained “severe on the whole,” due to a “cooling off” in the market and the impact of intensifying competition in the core Japanese market.

Industrial Business

In Konica Minolta’s Industrial Business, the sensing field along with lenses for industrial and professional use within the industrial optical systems field, were “solid in general.” In the performance-materials field, demand for large panels for LCD TVs and small and mid-size panels for smartphones and tablets was “robust,” which resulted in year‐over‐year gains in sales volumes, particularly for VA‐TAC films for increasing viewing angle.

Full-Year Forecast

Konica Minolta is not changing its forecast for its fiscal full-year 2015, with net income forecast at ¥33.0 billion

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