Konica Minolta 1999 Annual Report Download - page 6

2KONICA
A Message from the President
“Konica’s constant drive to realize technological excellence and manage-
ment efficiency means the Company is now well positioned to benefit
from changes in global markets.”
During fiscal 1999, ended
March 31, 1999, the Japa-
nese economy became fur-
ther mired in a protracted
slump characterized by weak
consumer and business con-
fidence. In addition to instabil-
ity in the domestic financial
system, Japanese industries
had to contend with the eco-
nomic downturn in Asia, a
major destination for many
export goods. Only the United
States proved a source of
strength for our business in
the global economy.
New Demand
Emerges amid the
General Market
Downturn
Amid these conditions,
competition in the market
for photographic and infor-
mation imaging products
and services intensified. The
convergence of imaging and
computer technologies, par-
ticularly in digital technologies,
continued to redefine the
markets not only for copiers
and other business prod-
ucts but also cameras and
other consumer photo-
graphic products.
RDespite such difficult condi-
tions, Konica Corporation
posted consolidated net sales
of ¥584.3 billion, down only
¥0.1 billion from the previous
fiscal year. Sales in Japan fell
7.1%, to ¥328.6 billion, while
overseas sales advanced
10.9%, to ¥255.8 billion, and
accounted for 43.8% of con-
solidated net sales, up from
39.5% in fiscal 1998. While
our products retained their
popularity, higher marketing
costs and the strengthening
of the yen in the second half
of the fiscal year resulted in
operating income plummeting
42.2%, to ¥14.6 billion. Also,
as a result of extraordinary
losses incurred in restructur-
ing our consumer imaging
businesses in Japan and the
United States, we posted a
net loss of ¥3.2 billion.
RBy segment, sales in Busi-
ness Machines rose during
Tomiji Uematsu
President and Chief Executive Officer