Konica Minolta released their first quarter earnings (ended 30 June 2017) of the fiscal year 2018 showing the Group’s revenues up 1.4 percent year-on-year although sales are falling in Europe.
The OEM saw weak sales in Europe for the Office Business segment, leading to a decline in revenue. The revenue of the Office Business segment was ¥133.0 billion ($1.19 billion/ €1.02 billion), down 2.3 percent year-on-year.
However, the Professional Print Business segment saw the industrial printing business unit grow, resulting in higher revenue. The revenue for the Professional Print Business segment ¥49.0 billion ($ 440 million/ €375 million), an increase of 3.2 percent year-on-year.
The Group’s profit before tax was ¥8.2 billion ($73 million/ €63 million), which is down 3.8 percent year-on-year
In the office products business unit, although sales volumes of A3 colour MFPs (Multi-functional peripherals) grew sharply in North America and China, European sales stagnated. In Germany in particular, amid intensifying price competition, Konica Minolta stated it experienced lower sales to major customers and to indirect sales channels.
In the production print business unit, Konica Minolta stated, sales volumes of colour digital printing systems in Japan declined, but in North America, Europe, and other regions, the “AccurioPress C2070” series launched in the second half of the previous fiscal year remained solid, contributing to growth in sales volumes. Notably, in China, sales volume for colour digital printing systems doubled year-on-year.
In the industrial printing business unit, sales of “AccurioJet KM-1” digital inkjet press and digital decoration printing equipment made by French subsidiary MGI increased, boosting revenue.
Konica Minolta’s forecast for the full fiscal year 2018 that was announced on 11 May 2017, will remain unchanged .