KONICA MINOLTA Konica Minolta Group 2nd Quarter/March 2014 Consolidated Financial Results  


Status of manufacturing cost reductions and SG&A expenses

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Manufacturing costs continue to decrease steadily. Although we had our work cut out for us trying to curtail fixed costs in the previous fiscal year due to special factors on the manufacturing side, manufacturing profit and loss as well as variable costs are improving steadily this fiscal year. We are forecasting a reduction in costs of ¥8.0 billion year on year for the full year and are progressing well toward this goal with projections for reasonable effects in the second half as well. In contrast, aside from an increase in SG&A due to M&As, other factors behind this increase include the implementation of measures to transform the business portfolio at existing sales subsidiaries and to strengthen sales in the production print field, but these moves are in line with plans, so there is no concern.