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:
Canon sees another record profit, taps new president
TOKYO (Reuters) - Canon Inc. (7751.T) said on Monday that strong sales of digital cameras and printers would help it score a seventh straight year of record profit in 2006, and it tapped a new president to replace the outgoing Fujio Mitarai. ADVERTISEMENT
Canon said Tsuneji Uchida, 64, the head of its digital camera operations, would take over the reins from Mitarai, who has been widely expected to step down because he will be taking the top job at Japan's most powerful business lobby in May.
Mitarai, 70, who cleaned up the company's finances and boosted profits seven-fold since becoming chief executive in 1995, will stay on as chairman.
"Uchida has been instrumental in bolstering our digital camera business through strong leadership," Canon Senior Managing Director Toshizo Tanaka told a news conference. "Within the company he was seen as a natural choice."
The world's top maker of digital cameras and laser printers forecast group net profit to rise 8.0 percent to 415 billion yen ($3.54 billion) in 2006, beating the consensus of 401 billion yen, according to a Reuters Estimates poll of 17 analysts.
The Tokyo-based company is banking on higher sales of color copiers, laser printers supplied to Hewlett-Packard Co. (NYSE:HPQ - news), and digital cameras, especially high-end and high-margin digital single lens reflex (SLR) models that use interchangeable lenses.
Canon sees sales up 8.1 percent at 4.06 trillion yen.
For the fourth quarter ended in December, group net profit came to 108.21 billion yen, up from 80.8 billion yen a year earlier but below the market consensus for a profit of 113.8 billion yen.
Canon's operating profit in the quarter hit a record high of 169.3 billion yen, but this also fell a bit short of analysts' expectations and the company's own target even though earnings were boosted by a softer yen.
Tanaka attributed the shortfall to weaker-than-expected sales of color office copiers and ink jet printers amid intense competition with rivals such as Ricoh Co. (7752.T), Lexmark International Inc. (NYSE:LXK - news) and Seiko Epson Corp. (6724.T)
"Our competitors cut prices more than we had originally anticipated," Tanaka said.
Last week, U.S.-based copier maker Xerox (NYSE:XRX - news) posted a higher quarterly profit but disappointed investors with a drop in revenue while Lexmark saw its profit tumble by nearly half and Seiko Epson cut its full-year outlook to a net loss.
Ricoh also unveiled quarterly earnings on Monday, reporting a 4 percent drop in operating income due to higher research and development expenses. Ricoh's sales rose 7 percent, however, and net profit increased 3.5 percent to 23 billion yen.
Shares in Canon rose about 13 percent in the October-December quarter, underperforming Tokyo's electrical machinery index (.IELEC.T), which gained about 18 percent. Before the announcement, Canon shares ended up 0.4 percent at 7,190 yen.