Konica Minolta Reports Results for Fiscal Year

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Konica Minolta Group of Tokyo, Japan, today reported results for its fiscal year that ended on March 31, 2018, with net revenues reaching ¥1,031.2 billion, up 7.1 percent year-over-year, with all business segments posting higher revenue. Operating profit was ¥53.8 billion (up 7.4 percent year-over-year. All business segments recorded growth in earnings, and the group as a whole also posted higher profits.

Profit before taxes came in at ¥49.1 billion (down 0.4 percent year-over-year), while profit attributable to owners of the company was ¥32.2 billion (up 2.2 percent year-over-year).

Office Business Group

In the company’s Office Business group, in addition to strong sales of color copier/MFPs in North America, sales in China grew significantly.

Revenue for the group was 583.3 billion yen, up 4.6 percent, and operating profit was 44.9 billion yen, up 1.3 percent, both versus the previous fiscal year.

Professional Print Business

In the company’s Professional Print Business, sales of digital color printing systems strongly increased in China, and rose in Europe as well, while the industrial printing business unit also expanded, primarily in North America.

Revenue for the group was 214.2 billion yen, up 5.0 percent, and operating profit was 9.2 percent, up 12.4 percent, both versus the previous fiscal year.

Healthcare and Industrial Businesses

In Konica Minolta’s Healthcare Business, digital product sales rose in North America, while in the Industrial Business, the solid performance of the measuring instruments business unit continued throughout the fiscal year, leading to a substantial increase in revenue.

Revenue for the healthcare business was 96.5 billion yen, up 7.3 percent, and operating profit was 5.2 billion yen, up 94.6 percent, both versus the previous fiscal year.

Revenue for the company’s Industrial business was 118.2 billion yen, up 16.4 percent, and operating profit was 23.4 billion yen, up 6.4 percent, both versus the previous fiscal year.

Structural Reform and Focus

Structural reform expenses were  ¥5.3 billion in Japan and ¥4.6 billion overseas. Moreover, the company also says it  optimized the use of its facilities (land, buildings) as part of its corporate real estate strategy, generating ¥20.3 billion in income from asset liquidation through sale and leas-back, which enabled it to offset structural reform expenses and investment in new businesses, including expenses associated with major acquisitions.

As part of its mid-term business plan, Konica Minolta says it will focus on:

1. High value-added services appropriate to an IoT era in which things are connected to other things
2. Full-scale promotion of digitization in commercial and industrial printing
3. Full-scale entry into the area of precision medicine

Forecast

For its current fiscal year that will end in March 2019, Konica Minolta is forecasting net revenue of 1,080.0 billion yen, versus the 1,031.2 billion yen reported for the previous fiscal year, and operating profit of 60.0 billion yen, versus the 53.8 billion yen it had reported for the previous fiscal year.

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