Konica Minolta has long been a leading company in photo imaging business covering wide range of imaging from input to output. In addition, we have provided inspiring products and services by fusing our unique technologies.
In camera business, we have expanded picture-taking opportunities by developing innovative technologies such as the world’s first autofocus cameras. In 1962, our camera, well-accepted for its high reliability, boarded on the US’s first manned spaceship “Friendship 7.” Also, ever since introduction of the world’s first body-integral autofocus SLR camera, Maxxum/Dynax series, in 1985, SLR cameras have become more popular among picture-takers, and we have succeeded in selling 16 million units of interchangeable lenses since then.
However, in today’s era of digital cameras, where image sensor technologies such as CCD is indispensable, it became difficult to timely provide competitive products even with our top optical, mechanical and electronics technologies.
In photo business, represented by the silver-halide photography such as color film and color paper, we have produced Japan’s first photographic paper in 1903, and Japan’s first color film in 1940, thus pioneering joy of photography for more than a century. In 1984, we introduced the world’s first compact washless photofinishing system known as a minilab system. The minilabs contributed to the expansion of worldwide photographic market by making photos closer to consumers and amazingly shortening delivery time.
However, traditional silver-halide photographic market is shrinking astonishingly by the surge of the worldwide digitization. In such a changing world, profits for camera and photo businesses worsened in recent years, and it became necessary to drastically reform business structure for the further growth of Konica Minolta. Ever since we decided and announced restructuring guidelines of our businesses on November 4, 2005, we have been considering practical and detailed plan, and we would like to announce our decision made today as follows:
Fuji Photo to Cut 5,000 Jobs, Slashes Profit Forecast
an. 31 (Bloomberg) -- Fuji Photo Film Co., the world's fifth-biggest digital camera maker, will eliminate 5,000 jobs and shift some production to China from Japan, in a reorganization that it expects to reduce full-year profit by 77 percent.
Net income will fall to 20 billion yen ($170 million) in the year ending March 31, compared with its previous 85 billion yen forecast, the company said in a statement today. The company, which makes FinePix digital cameras, had 75,638 workers worldwide as of March 2005, according to its Web site.
Fuji Photo, founded in 1934, is the latest in the industry to cut costs amid falling prices and as people switch to digital cameras from film. Eastman Kodak Co., the world's largest photography company, yesterday posted a fifth straight loss, while Konica Minolta Holdings Inc. earlier this month said it will exit its century-old camera business.
``Fuji Photo's plan symbolizes an end to the film camera era,'' said Hiroshi Chano, who helps oversee $6.7 billion at Yasuda Asset Management Co. in Tokyo. ``The digitalization of the camera industry occurred at much faster pace than I expected. Reorganization will be a painful process for Fuji Photo.''
The company will incur an 80 billion yen charge this year to cut its domestic digital camera production while boosting output in China, according to the statement.
``By taking these restructuring steps, we hope to reduce fixed costs and secure stabile profits in our imaging solutions division,'' the Tokyo-based company said in the statement.
Third-Quarter Earnings
In the fiscal third-quarter, net income rose 30 percent to 27.1 billion yen as sales gained 6.5 percent to 681.7 billion yen, the company reported today. Operating profit, or sales minus the cost of goods sold and administrative expenses, fell 4.4 percent to 41.7 billion yen.
Fuji Photo's imaging solutions division, which sells color film and digital cameras, had a 5.2 percent drop in sales to 19.5 billion yen. The unit accounts for 29 percent or sales.
Shares of Fuji Photo fell 0.7 percent to 4,020 yen at the 3 p.m. close on the Tokyo Stock Exchange. The results were released after the market shut. The stock gained 4.3 percent last year, lagging the 40 percent advance in the benchmark Nikkei 225 Stock Average.