Konica Minolta Quarter Profit Falls 36Percent17 Aug, 2004
Konica Minolta Quarter Profit Falls 36Percent
Konica Minolta Holdings Inc. said first-quarter net income fell 36 percent due to merger costs and a strong yen. The company left its full-year sales and profit targets unchanged.
The Tokyo-based company said it earned 7.2 billion yen ($65 million) net income in the three months ended June 30 compared with a combined 11.3 billion yen profit earned by the two companies in the year-earlier period. Sales rose 2.5 percent to 262 billion yen from 255.7 billion yen a year earlier.
Konica Minolta had warned investors that the cost of merging the company, a combination of Konica Corp. and Minolta Co. formed in August, would initially reduce profit. The stronger yen also eroded operating profit by 2.3 billion yen and trimmed sales by 7 billion yen for the quarter.
First-quarter operating profit, or sales minus the cost of goods sold and administrative expenses, fell 13 percent to 16.95 billion yen from the 19.6 billion yen the two companies earned a year earlier.
Shares of the company fell 1.4 percent, or 20 yen, to 1,410 yen in Tokyo Stock Exchange trading, leaving them little changed for the year. The company released results just prior to the close of equity markets at 3 p.m.
In May, Konica Minolta left unchanged its net income target of 30 billion yen for the year ending March 31, 2005, or 55 percent more than a year earlier. Sales are forecast to total 1.15 trillion yen, or 2.4 percent more than the two companies had generated in the previous year.
Konica Minolta to trying to keep pace with rivals such as Canon Inc., Xerox Corp., and Ricoh Co., which are expanding product ranges of color copiers and printers as customers replace older monochrome models.
The company's first-quarter sales of multifunction printers and other telecommunications equipment fell 4.1 percent to 144 billion yen. Operating profit for the division rose 6.1 percent to 14.9 billion yen.