Konica Minolta: Toner issues drive nearly £ 40million backlog

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Konica Minolta has a 6 billion yen (£ 38.6 million) backlog in its professional printing division due to the current disruption in toner manufacturing – but the group said the shortage of The toner supply was to “be resolved at an early stage” with priority given to existing customers.

In its half-year results for the six-month period ended September 30, KM said that in its professional printing wing, sales of color models in its production printing operation were up 103%, while those of monochrome devices were up 100%.

“Due to the explosion accidents at the Tatsuno plant, toner under-supply resulted in delays in sales and shipping activities. As a result, the backlog stood at 6 billion yen, ”the company said.

KM said that due to the Tatsuno shutdown, toner production volume is expected to be about 75% of actual demand “during the period from plant shutdown to restart of operations under ‘a new system of production and recovery of production capacity’.

Tatsuno’s troubles also took its toll on its Kofu factory, where toner production was also halted while an investigation was being carried out.

“Therefore, especially in the professional printing industry, sales of new equipment and non-hardware are expected to be affected since toner will be supplied to existing customers first,” said KM.

The Tatsuno plant, which makes the Simitri toner used in KM’s high-end color devices, is expected to restart production on November 8. Kofu resumed operations on October 18.

There was better news at KM’s industrial printing operation, where sales are on the rise, including what she described as a “remarkable recovery” in digital embellishment printing.

“In the industrial printing unit, as in the non-material, label printing and textile printing revenue increased due to a steady recovery in demand for raw materials and the market. European clothing, ”said KM.

The group also cited the increase in print volumes in commercial printing plants, where the operating rate (print volume per unit) of the “highly efficient digital inkjet printer has increased”.

“The recovery in printing demand has resulted in a remarkable recovery in demand for large digital embellishment printing equipment, digital textile printer, digital inkjet printer and label printer. . “

Sales of the Professional Printing business unit rose 27.3 percent to 93.5 billion yen, as the operation was in the dark again, posting operating income of 1.4 billion yen from an operating loss of 8.7 billion yen the previous year.

The entire Konica Minolta group has also been affected by global supply issues affecting semiconductors, as well as other raw materials.

“The Digital Workplace business is expected to be affected by the delivery of the company’s products to customers in the second half of the current fiscal year, as it is expected to remain at around 70% of actual demand,” KM explained.

Due to the various challenges encountered in its operations, the Japan-based manufacturer has lowered its sales and profit forecast for the entire year.

The group’s overall sales are expected to be 50 billion yen lower than forecast, to 890 billion yen, while operating profit expectations have been reduced by 66.7%, from 36 billion yen to 12 billion yen. yen.

KM said he expected supply chain issues with semiconductors and some other materials (but not toner) to continue into the first half of fiscal year 2022/23.

As part of its DX2022 business plan, KM “is working quickly on two portfolio transformations” and aims to reduce its reliance on office printing. The group also plans to strengthen its position in growth activities “such as Industry”, and is also looking for new opportunities for mergers and acquisitions and collaboration.

Its Industry division includes detection, optical components and inkjet components.


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