Konica Minolta raises 2009/10 cost cut target
TOKYO Oct 23 (Reuters) - Japan's Konica Minolta Holdings (4902.T) said it plans to cut costs by 38 billion yen ($416 million) or more in the year to March, up from its original target of 33 billion yen, to shore up profitability. The comment by Konica Minolta Senior Executive Officer Shoei Yamana comes after the office equipment maker cut its annual operating profit forecast by 24 percent on slow demand for multi-functional printers (MFPs).
MFPs typically combine copier, printer, scanner and fax functions.
Konica Minolta competes with Xerox Corp (XRX.N), Canon Inc (7751.T) and Ricoh Co Ltd (7752.T) in copiers and printers. It is also a major producer of triacetyl cellulose (TAC) film, a high-tech film used in LCD panels. Yamana told Reuters in an interview that the company may start production at its new TAC film plant in Japan earlier than planned amid brisk demand for LCD panels.
Konica Minolta said in July it would start output at the new TAC film factory by autumn 2010.
(Reporting by Kiyoshi Takenaka; Editing by Joseph Radford)
((kiyoshi.takenaka@thomsonreuters.com; +81 3 6441 1810; Reuters Messaging: kiyoshi.takenaka.reuters.com@reuters.net))
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