Konica Minolta Reports Third-Quarter Financial Results

On January 28, 2016, Konica Minolta reported its earnings results for the period from April 1, 2015 through Dec. 31, 2015. In the nine months ended December 31, 2015, consolidated revenue of the Konica Minolta Group was ¥762.3 billion, an increase of 4.7 percent year over year. Operating profit was ¥41.5 billion, down 11.7 percent over the previous-year period. Profit before tax was ¥40.5 billion, down 16.8 percent year over year, and profit attributable to the owners of the company was ¥26.4 billion, down 11.3 percent year over year.

Business Technologies Business

Office services

Konica Minolta reported that for its mainstay A3 color MFPs, price competition is intensifying in the U.S. and European markets, but it has followed a marketing strategy of maintaining prices and has succeeded in growing sales of high?value?added products, primarily mid?range and higher?segment models. Sales of monochrome models as well were strong in Europe and China, and sales volumes exceeded prior?year levels.

Regarding major negotiations with large companies for global purchasing, the firm reported sales are expanding steadily due to new large?scale contract wins (such as with a major European general construction company) and contract renewals at existing customers. In “hybrid?type sales,” which combine equipment sales with the provision of IT services, the group proposed a solution for improving the efficiency of document management and workflow to a leading U.S. educational institution. Konica Minolta reported that this proposal won the large?scale contract, showing that “non?price competition” based on more than just pricing factors is taking root.

Commercial and industrial printing

In production print, sales of the top?of?the?line bizhub PRESS C1100 digital color printing system grew primarily in the U.S. and Europe, which further strengthened the foundation for an expansion in color print volumes.

In Marketing Print Management (MPM) services, which help optimize printing costs and improve business processes in a company’s marketing department, Konica Minolta reported that it won new customers while also expanding the scope of services provided to existing customers, from the traditional production of printed materials to digital content management. In the industrial inkjet business, sales of components such as inkjet print heads for use in large?format printers were strong.

As a result, the firm reported revenue of the Business Technologies Business from external customers was ¥616.1 billion, up 5.5 percent year on year, and operating profit was ¥50.8 billion, up 1.6 percent year on year. Revenues rose due to the effect of acquisitions and the weaker yen against the U.S. dollar. However despite gains on sale of property, plants and equipment in North America, in addition to the yen continuing the previous year's trend of strengthening against the euro, which has a significant impact on profits, there were also increases in costs related to the transformation in the focus of our business, including the bolstering of the service provision capability, which the firm reports was responsible for the small increase in profit.

See the full financial statement here.

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