Konica Minolta Press Release 19/03/04

Konica Minolta to Cut Back on Digital-Camera Business Despite Growth

[Kyodo News International, Tokyo. Distributed by Knight Ridder/Tribune Business News.]

Kyodo News International via NewsEdge Corporation : Mar. 18—TOKYO—Konica Minolta Holdings Inc. said Thursday it will cut back on its digital camera business despite continuing growth of the market in order to avoid the adverse effects of intensifying competition.

“While digital cameras are in a period of growth, price reduction and competition are accelerating,” Konica Minolta President Fumio Iwai said when he released his company’s medium-term business plan at a press conference.

Demand for digital cameras is expected to “peak next year,” Iwai added.

Konica Minolta has captured 8 percent to 9 percent of the global market for digital cameras.

The company’s market share will become “very small in single-digit figures” due to unexpectedly tough competition, Iwai said.

According to the business plan, Konica Minolta expects sales of 120 billion yen in the camera business in fiscal 2006, down about 18 percent from 146.2 billion yen projected for fiscal 2003 to March 31.

Digital camera shipments are forecast to level off in fiscal 2004 from the 3.1 million units forecast for fiscal 2003.