Konica Minolta Takes Big Dive for Fiscal Year 2019
Konica Minolta Takes Big Dive
“Earnings were largely as anticipated up to February (except in China),” said Konica Minolta president and CEO Shoei Yamana (pictured).
“The spread of COVID-19 in other regions in March was accompanied by major constraints on business activities, including sales and installation of already contracted equipment,” he added.
Some highlights of the report include:
- Revenue registered JPY￥1 billion (USD$9.27 billion), down 6% year-over-year, while in fourth quarter (Q4) revenue was of JPY￥249.1 billion (USD$2.32 billion), a decrease of 12% from last year.
- Operating profit decreased 86.8% to JPY￥21 billion (USD$76.36 million), down 87% year-over-year. In Q4, operating profit turned out to be JPY￥-2.4 billion (USD$-22.3 million)
- Profit before tax dropped 99.5% to JPY￥284 million (USD$2.64 million)
- Profit attributable to owners of the company was of JPY￥-3.1 billion(USD$28.83 million).
By business segment, Office revenue registered JPY￥546.5 billion (USD$5.08 billion) in the whole fiscal year, down 7% year-over-year. Professional print revenue was of JPY￥210.1 billion (USD$1.95 billion), a decrease of 8%.
Office operating profit was of JPY￥23.9 billion (USD$222.8 million), down 49% from last year. Professional print operating profit turned out to be JPY￥4.4 billion (USD$40.92 million), down 69% year-over-year.
According to the company, the main factors that resulted in revenue change are as follows:
- Q4 was seriously affected by exchange rates and also by COVID-19, but a larger part of the decline in revenue was caused by the curtailment of operating activities. There was no disappearing of demand or diminishing of competitiveness, and revenue effectively remained more or less flat.
- For the full year, excluding exchange rates, COVID-19, and other external factors, effective revenue was at the bottom in Q1 and then began recovering in Q2, following which it has been holding stable. There was significant top-line expansion in new businesses that had advance expenses invested along the way.
Main factors that caused profit change are as follows:
- In the 4Q, operating income increased in real terms excluding external and special factors. Improvements continued quarter on quarter basis.
- In the fiscal year, operating profit posted a significant decline due to delays in cost reductions that occurred in the first half of the fiscal year, as well as external and special factors. Profit attributed to owners of the company for the year posted a loss. Additional structural reform costs for the second half were recorded as planned.
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