Second quarter revenue reached ¥258.6 billion, an increase of 4% year on year. As a result, operating profit reached ¥18.2 billion, an increase of 11% year on year.
One-off factors in the first quarter of this year include structural reforms of the special early retirement program and sale of assets in the first quarter of the previous year. The scenario we had envisioned was that those factors would be covered in the second quarter, and the total for the first half would show an increased profit. However, even though the Business Technologies Business drove a profit increase in the second quarter, hardware sales in the office services field were softer than anticipated. For this and other reasons, the total for the first half showed a year-on-year decrease of 8% in operating profit. In the Business Technologies Business, revenue in the United States and Europe accounts for 70 to 80% of the total, but major competitors have engaged in increasingly aggressive pricing offensives in bidding on large contracts, particularly in the United States.
Konica Minolta originally focused on direct sales, and worked out a policy of transforming to a value-added business model. Therefore the decision had been not to play catch-up in order to win contracts on price. The price offensive was even more aggressive than anticipated, however, and the fact that we did not follow suit is the reason that sales volume, revenue and the resulting profit ended up not achieving our plan.
Konica Minolta has been steadily advancing the TRANSFORM policy of transforming to a value-added business model with a focus on the production print field as well as areas outside the Business Technologies Business.
One-off factors in the first quarter of this year include structural reforms of the special early retirement program and sale of assets in the first quarter of the previous year. The scenario we had envisioned was that those factors would be covered in the second quarter, and the total for the first half would show an increased profit. However, even though the Business Technologies Business drove a profit increase in the second quarter, hardware sales in the office services field were softer than anticipated. For this and other reasons, the total for the first half showed a year-on-year decrease of 8% in operating profit. In the Business Technologies Business, revenue in the United States and Europe accounts for 70 to 80% of the total, but major competitors have engaged in increasingly aggressive pricing offensives in bidding on large contracts, particularly in the United States.
Konica Minolta originally focused on direct sales, and worked out a policy of transforming to a value-added business model. Therefore the decision had been not to play catch-up in order to win contracts on price. The price offensive was even more aggressive than anticipated, however, and the fact that we did not follow suit is the reason that sales volume, revenue and the resulting profit ended up not achieving our plan.
Konica Minolta has been steadily advancing the TRANSFORM policy of transforming to a value-added business model with a focus on the production print field as well as areas outside the Business Technologies Business.