KONICA MINOLTA 3rdQuarter/FY2017 ending in March 2018 Consolidated Financial Results  


Initiatives to Strengthen Profitability in Office and Production Print

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Here, I would like to talk about progress in strengthening the profitability of the office and production print business units, which make up the core of the Office Business and Professional Print Business.
Both the office and production print business units recorded 2Q and 3Q revenue growth year on year. In the second half, priority has been given to measures for value-added sales and reduction of production costs. These profitability improvement initiatives have yielded results. We have held to a greater increase in year-on-year revenue than 2Q while also increasing the annual gross profit ratio. In the office unit, measures to introduce new products in our line of color 65/75-ppm models, in order to shift to high-speed models, expand hybrid sales, stay on the current improving trend of non-hard profits, and focus on selected profitable bids are serving us well. In the production print business unit, as well, we saw a continuous expansion of revenue year on year from 1Q to 3Q, and the gross profit ratio has also improved annually. As I explained just now, proposals for added value and differentiation by means of the IQ-501, full-scale sales of the AccurioPress C6100, which is our top-end color model, continuing growth in non-hard, expanding sales in China, and other such measures have begun to bear fruit. We will continue with initiatives to strengthen profitability in 4Q, as well.