KONICA MINOLTA Konica Minolta, Inc. 3rd Quarter/March 2016 Consolidated Financial Results  


Fiscal 2015 full-year forecasts

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Although we do not disclose our internal plans, progress in 3Q underperformed relative to management expectations. However, in consideration of various factors in 4Q, such as the industry outlook, the economic situation in various countries, the state of financial markets, and the price of oil, we feel that there are positive elements as well as negative factors at work and have decided not to change our published forecasts at this time. Revenue, operating profit and profit for the year are unchanged from previously announced figures. Our basic stance is that we may review initial forecasts at the half-year stage, but that we are not inclined to revise forecasts on a quarterly basis.
We are not revising our profit forecasts, but please be aware of the following with regard to cash flows. In 3Q, revenue from the Business Technologies Business did not achieve management expectations, but in North America, where sales were especially weak, looking at the inventory in the sales channel and the direct sales pipeline, we believe that 4Q will reach the forecast level. The inventories that built up in 3Q will shift into accounts receivable in 4Q as sales rise, but as some of that may be difficult to recover, working capital and especially the change in receivables will likely deteriorate. We expect that to be a negative of about ¥13 billion, so we have revised our previous estimate of free cash flow of negative ¥25 billion to negative ¥38 billion.
We have left dividends unchanged at ¥15 in the second half and ¥30 for the full year.