Revenues Up, But Profits Down for Konica Minolta’s Fiscal Year

Konica Minolta Singapore Beach Cleanup Crew

This week, Konica Minolta of Japan reported results for its fiscal year that ended on March 31, 2016. Revenues were up 2.9 percent to 1,031.7 billion yen, but profits totaled 31.9 billion yen, down 21.9 percent, both versus the previous fiscal year.

In Konica Minolta’s Business Technologies Business, the firm says sales of high‐end color models for commercial printing rose, in addition to which corporate acquisitions and the weaker yen against the U.S. dollar contributed to revenue growth. Revenues for the Business Technology Business were up 3.0 percent to 832.1 billion, but operating profit was down 3.4 percent to 70.2 billion, both versus the previous fiscal year.

Sales of Konica Minolta’s high-volume  bizhub PRESS C1100 digital color production-printing system “grew primarily in the U.S. and Europe.” In the company’s industrial-inkjet printing business, sales of components such as inkjet print heads for use in large‐format printers were also strong.

In the company’s Industrial Business, the field of optical systems for industrial use benefited from the effects of acquisitions in measuring instruments and recorded higher revenue, but in the field of performance materials, the impact of the deterioration in display‐related markets led to a decline in revenue. The Healthcare Business was helped by the contribution of a corporate acquisition in the United States and revenue for the group rose.

Overall company operating profit was 60.0 billion yen (down 8.7 percent year-over-year). The Business Technologies Business group posted a decline in profit, “albeit a small one.” Konica Minolta attributes the decline to higher costs related to “the transformation in the focus of our business carried out in an increasingly competitive environment, the yen’s appreciation against the euro in the latter half of the fiscal year, which had a considerable impact on profits, and reserves set aside for business-structure improvement expenses for the next fiscal year.”

Forecast

In Konica Minolta’s Business Technology Business, the firm forecasts that sales of color MFPs for office use will continue to increase in overseas markets. In the commercial- and industrial-printing field, it expects demand for digital printers to rise as a result of more individualized and fractionalized marketing.

For its current fiscal year that will end in March 2017, Konica Minolta is forecasting revenue of 1,060.0 billion yen, versus the 1,031.7 billion yen it reported for its fiscal year 2016 that just ended, and profits of 44.0 billion yen, versus 31.9 billion for its fiscal year just ended.

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