Konica Minolta Reports Latest Financial Results

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Konica Minolta of Tokyo, Japan, today reported results for its fiscal first quarter (April 1 to June 30, 2018), reporting revenue of ¥255.2 billion, up 9.8 percent versus the same quarter a year ago.

By business segment, revenue in the Office Business segment rose in all regions, and the Professional Print Business segment also posted increases in revenue, driven by sales in Europe and China.

In the Healthcare Business, revenue fell due to the impact of discontinuing the sale of certain purchased products. Industrial Business revenue increased, with higher sales of Performance Materials offsetting declines in revenue, caused by a slowing of demand, in the Measuring Instruments business unit.

Operating profit for Konica Minolta for its first quarter was ¥15.4 billion, up 77.2 percent year-over-year. Due to the strengthening of profitability in core businesses, all business segments recorded growth in profits. Liquidation of certain assets through sale and lease backs also generated income, leading to a significant year-over-year increase in profit for company as a whole, with profits amounting to ¥11.1 billion, up 108.3 percent year–over-year.

Office Business Group

In Konica Minolta’s Office Business group, sales of monochrome A3 copier/MFPs declined year-over-year, but sales of color models “grew considerably,” resulting in an overall increase in sales.

Among color models, the high-speed product launched in the previous fiscal year continued to perform at high rates of increase in developed countries, primarily in Europe.

In growth countries such as China, India, and those in ASEAN, there was considerable expansion from low-speed machines to high-speed equipment, resulting in progress in line with the company’s regional strategy.

In the IT services solutions business unit, in addition to the continued impact of newly consolidated subsidiaries, sales of security solutions, etc. contributed to increased revenue in the United States. In Europe also, there was a contribution to revenue from newly consolidated subsidiaries and from higher sales of Managed Content Services, where service provision capabilities had been expanded.

As a result of the above, revenue for the Office Business group came in at ¥143.5 billion, up 7.9 percent year-over-year, while operating profit was ¥9.2 billion, up 73.2 percent year-over-year.

Professional Print Business

In Konica Minolta’s production-printer business unit, there were year-over-year increases for both monochrome and color equipment. Sales volumes in North America fell slightly year-over-year, but sales in Europe expanded, centered on top-of-the-line color models. In China and the ASEAN region, sales volumes rose significantly for all models.

In the industrial printing business unit, sales of Konica Minolta’s AccurioJet KM-1 digital inkjet press, label printers, and digital decoration printing equipment made by MGI increased, primarily in North America and Europe.

Overall sales volumes, including those in other regions, rose considerably, and the company continued to implement upfront investment in boosting sales resources in order to accelerate growth.

In its marketing-services business unit, on-demand printing, which is being developed under the Kinko’s brand, continued to post stable earnings. In marketing print, in addition to recovering demand at major customers, digital marketing services grew, and profitability also improved.

As a result of the above, revenue for Konica Minolta’s Professional Print business came in at ¥53.3 billion, up 8.9 percent year-over-year, while operating profit was ¥1.6 billion, up 5.5 percent year-over-year).

Outlook

Konica Minolta slightly increased its forecast for its entire fiscal year as indicated below:

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