Lower Revenues, Profits for Konica Minolta’s Fiscal Year
Konica Minolta of Japan today reported financial results for its fiscal year that ended on March 31, 2017,with revenue of ¥962.5 billion, down 6.7 percent year-over-year, operating profit of ¥50.1 billion, down 16.5 percent year-over-year, and profits of ¥31.5 billion , down 1.3 percent year-over-year.
In its Business Technologies Business, the firms says that mainstay color products in the fields of office services and commercial and industrial printing, especially high-end models, recorded growth in sales volume, but this was insufficient to absorb the impact of the stronger yen compared to the previous year, and both revenue and profit fell. Revenues for the Business Technologies Business were 771.7 billion, down 7.3 percent versus the previous year, while operating profit for the group was 52.9 billion yen, down 24.6 percent versus the previous year.
The firm explained that sales of mainstay “bizhub” series A3 color MFPs remained strong during its fiscal year, and sales exceeded previous-year levels in all regions. The high rates of growth were shown by high-end models in terms of product segment and by the European and Chinese markets in terms of sales region. It says that the competitive MFP market “continues to be severe,” but that its “unique hybrid-type sales approach that combines document solutions centered around MFPs with managed IT services (services that provide integrated deployment, operation, administration, and maintenance, etc. of IT equipment and systems) is penetrating markets, primarily in North America and Western Europe, and
contributing to an increase in revenues and profitability by customer. “
In the production-printer market, the firm’s bizhub PRESS C1100 digital color printing system is said to continue to post “solid sales.” Growth was particularly noticeable in markets in North America, China, and Asia. In the light production-printer market that Konica Minolta says is one of its strengths” while competition is intensifying and sales have been “stagnating,” the new “AccurioPress C2070” series product that Konica Minolta launched in the second half of the fiscal year “has had a positive reception from customers, and sales discussions are rising steadily.”
In Konica Minolta’s Healthcare Business, in addition to rising volumes of digital products, acquisitions also contributed to maintaining revenue at a level unchanged from the previous year, but profit fell due to an increase in expenses used to strengthen sales and the impact of the stronger yen.
In the firm’s Industrial Business, lower sales volume of mainstay products had an impact and led to a decrease in profit, but a rise in profit was achieved due to the posting of patent-related income as part of management measures taken to maximize the value of intellectual property.
For its current fiscal year that will end on March 31, 2018, Konica Minolta is forecasting revenue of 980.0 billion yen versus revenues of 962.5 billion yen for the previous fiscal year, and 30.0 billion yen in profit versus 31.5 billion yen for the previous fiscal year.
- February 2017: Citing Effects of Stronger Yen, Konica Minolta Reports Lower Revenues and Profits
- November 2016: Tough Six Months for Konica Minolta, as Revenue, Profits, Decline
- September 2016: Konica Minolta Rolls Out New ‘Workplace of the Future’ Smart-Office Solutions
- September 2016: Konica Minolta Establishes its First Dedicated Production-Printer Sales Company in South Korea
- July 2016: Hit Hard by Stronger Yen, Konica Minolta’s Net Revenues and Profits Decline for First Quarter
- June 2016: Konica Minolta Set to Spend up to $460 Million on New Acquisitions
- May 2016: Revenues Up, But Profits Down for Konica Minolta’s Fiscal Year
- May 2016: Konica Minolta to Re-Brand Commercial Printing Solutions with ‘Accurio’ Brand Name, Launch KM-1 Inkjet Press
- January 2016: Earnings Slow for Konica Minolta and Business Technology Group