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Reuters Summit-Konica Minolta: LCD film demand to boost earnings

Wed May 20, 2009 6:37am EDT

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(For other news from the Reuters Global Technology Summit, click here)

TOKYO, May 20 (Reuters) - Japan's Konica Minolta Holdings Inc (4902.T) said a recent strong recovery in demand for its high-tech film used in LCD panels is likely to boost its annual earnings, although it has no plan to increase its outlook now. Robust flat TV sales in China, spurred by the government's stimulus package, and the completion of panel inventory adjustments have created fresh LCD panel demand, which has led to brisk orders for its LCD film, Konica Minolta Senior Executive Officer Shoei Yamana told the Reuters Global Technology Summit in Tokyo.

Its triacetyl cellulose (TAC) film, which protects the polarisation plate used in LCD panels, had been an engine of growth for Konica Minolta until global LCD TV demand slowed last year due to the economic downturn.

"Adjustment of bloated panel inventory has pretty much run its course and now panel makers are boosting production to meet strong demand from China. We are experiencing a knock-on effect from all this," Yamana said.

"This is a boosting factor to our annual earnings although we have no intentions of changing that outlook now."

Konica Minolta last week said it expects operating profit to fall 20 percent to 45 billion yen ($469 million) in the year to March 2010 as its corporate clients will likely continue curbing spending on copiers and printers. Konica Minolta vies with Fujifilm Holdings Corp (4901.T) in TAC film and competes with Canon Inc (7751.T), Xerox Corp (XRX.N) and Ricoh Co Ltd (7752.T) in office machines.

($1=95.87 Yen)

(For summit blog: blogs.reuters.com/summits/)

(Reporting by Kiyoshi Takenaka; Editing by Anshuman Daga)

((kiyoshi.takenaka@thomsonreuters.com; +81 3 6441 1810; Reuters Messaging: kiyoshi.takenaka.reuters.com@reuters.net))

((If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com)) Keywords: TECH SUMMIT/KONICA MINOLTA

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