KONICA MINOLTA TO MISS REVENUE TARGET ?

  • ces_web_banner_toner_news_902x1776
  • cartridgewebsite-com-big-banner-02-09-07-2016
  • ncc-banner-902-x-177-june-2017
  • 05 02 2016 429716a-cig-clearchoice-banner-902x177
  • 4toner4
  • banner-01-26-17b
  • clover-depot-intl-us-ca-email-signature-05-10-2017-902x1772
  • 2toner1-2
  • mse-big-banner-new-03-17-2016-416716a-tonernews-web-banner-mse-212
  • Print
Share

KONICA MINOLTA TO MISS REVENUE TARGET ?

 user 2005-10-12 at 10:45:00 am Views: 68
  • #13878

    Konica Minolta’s Office Equipment Unit May Miss Revenue Target
    Oct,05 — Konica Minolta
    Holdings Inc., a Japanese maker of office equipment and digital
    cameras, may miss the revenue target at its biggest division this year
    as printer sales fall and rivals cut prices, the unit’s head said.
    Printers contribute less than a fifth of sales at the business
    technologies division, which accounted for 56 percent of Konica
    Minolta’s total revenue in the fiscal first quarter. The unit, which
    also sells copiers that are combined with printing, scanning and fax
    functions, has forecast sales of 620 billion yen ($5.4 billion) for the
    year ending March 2006.
    “We may not make it,” Yoshikatsu Ota, Business Technologies
    President, said in an interview last week in Berlin. Reaching the goal
    will depend on “how much loss from the printer side we could cover
    with the increase” in sales of multifunctional products.
    The Tokyo-based company, set up after Konica Corp. and Minolta Co.
    merged two years ago, is relying on sales of more profitable
    multifunctional color copiers to help counter losses from the digital
    camera division. President Fumio Iwai has narrowed Konica Minolta’s
    product line, focusing on single-lens reflex cameras that are more
    expensive and aimed at professionals.
    Shares of Konica Minolta have dropped 25 percent this year, making it
    the second-worst performer on the Nikkei 225 Stock Average, which has
    gained 15 percent in the same period. The shares fell 2.3 percent to
    1,024 yen on Oct. 7.
    Falling Prices
    Worldwide shipment of printers, copiers and multifunctional products
    will probably increase by 7.8 percent to 124.7 million units in 2005,
    buoyed by higher demand for color devices, researcher Gartner Inc.
    forecast in August.
    Even as unit sales rise, falling prices have forced manufacturers to
    cut profit forecasts. Seiko Epson Corp., the world’s No. 2 printer
    maker, last month slashed its full-year profit target by 50 percent
    because of falling prices for inkjet printers and flat-panel displays.
    To arrest a decline in printer sales, Konica Minolta has introduced
    cheaper multifunctional copiers, such as the C250 model, which features
    copy speed of 25 pages a minute, to attract smaller business customers.
    Konica Minolta’s second-quarter sales of multifunctional products, or
    MFPs, were “slightly above budget,” Ota said. The business
    technologies unit plans to sell between 140,000 and 150,000 units of
    MFPs in the current financial year, he said. The unit sold 19,200 color
    MFPs in the first quarter.
    Narrowing Losses
    The company plans to sell at least 50,000 MFPs this year in Europe
    alone, said Robert Sethre, a Germany-based sales and marketing manager
    at Konica Minolta. In Europe, Konica Minolta ranked No. 1 in sales of
    full-color products in the first half of this year, with a 34 percent
    market share, according to researcher InfoSource.
    Sales at the business technologies division were little changed at
    137.2 billion yen in the first quarter, and the unit has forecast
    first-half revenue of 290 billion euros.
    Konica Minolta’s photo-imaging unit, which sells digital and film
    cameras as well as lenses and other photographic materials, narrowed
    its first-quarter operating loss by 63 percent to 729 million yen. Ota,
    also a board member at Konica Minolta’s holding company, said the unit
    plans to further cut losses.
    “The photo imaging sector has to be brought into a better shape,” Ota said.
    Digital camera makers such as Olympus Corp. and Fuji Film Co. have also
    reported losses in their camera divisions on price competition and
    falling demand. Olympus, which reported a 62 percent decline in
    first-quarter profit, plans to cut 30 percent of its workforce at its
    camera unit this year.
    Ota said a combination of the camera unit with a competitor is “one
    possibility.” He declined to say if the company is in discussion with
    another company.
    “Olympus and Panasonic are very good corporations. Yet are they at all compatible? I don’t know,” he said.