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


Office/Professional Print Business Measures from 4Q Onward

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With a view to achieving the full-year forecasts and looking ahead to the next fiscal year, we are continuing our priority measures to strengthen profitability in the office and production print business units, which are our core businesses. We will strengthen and continue with measures that have produced and are producing 3Q results in both the office and production print business units.
In the top line for gross profit, we are considering accelerating the full-scale contribution by the new high-speed color products that were put on sale by 3Q, continuing the trend of non-hard growth by increasing MIF and PV, continuing with expansion of sales in China and other emerging countries, and other such measures. In the office business unit, important 4Q measures will include, in particular, early roll-out of major projects acquired in 3Q, prompt resolution of order backlogs, and acceleration of hybrid sales. In the professional print business unit, the measures will include highlighting the value-added appeal of the IQ-501 to generate demand in commercial printing, launching of new products, and ensuring that industrial printing contributes to profits.
On the cost side of gross profits, we will further increase the effects of digital manufacturing and reduce service costs.
In SG&A expenses, we will aim to improve profitability by strengthening IT service resources, with primary consideration given to launching of the Workplace Hub business unit, which has been carried on as an upfront investment, and by reining in development expenses in the production print business unit in the second half that had accumulated in the first half.