Tuesday, November 5, 2024
Konica Minolta Also Revises Financial Forecasts
Konica Minolta Also Revises Financial Forecasts
Sales from Konica Minolta’s main businesses through the end of February performed relatively well as forecasted, excluding China.
According to its report, in March as the COVID-19 pandemic spread across geographies, the company saw a dive in sales of main products and services, which impacted both revenue and operating profit.
As a result, Konica Minolta has announced the revision of the forecast for its consolidated financial results for the fiscal year ended March 2020.
Revenue is revised downward by 50.0 billion yen (US$467.8 million), of which 23.0 billion yen (US$215.2 million) is likely attributed to the impact of COVID-19. Also included in the consideration is the fact that it is taking time for the Company to bring in sales orders from its potential customers in the pipeline, which are recently increasing mainly in the field of new businesses.
Operating profit is revised downward by 12.0 billion yen (US$112.3 million), of which 11.0 billion yen (US$102.9 million) is likely attributed to the impact of COVID-19, and approximately 2.5 billion yen of impairment-related losses, including goodwill impairment related to a subsidiary acquired under the Professional Print Business. That said, when excluding these factors, the overall profitability in the Company’s business remained stronger than expected.
Profit attributable to owners of the Company is revised down to a loss of 3.5 billion yen (US$32.7 million), as operating profit is revised downward. Further, the nearly budgeted amount of 7.4 billion yen (US$69.2 million) is recorded in the fiscal year ended March 31, 2020 as for the cost of structure reform, which was implemented for the purpose of improving profitability for the coming fiscal year ending March 31, 2021.
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