While signs of adjustment have been strengthening in the liquid crystal display business in general since the summer of 2011, new VA-TAC films for increasing viewing angle were introduced from the start of the year, and sales in Korea and Taiwan performed well. Also, adoption of Konica Minolta's mainstay thin plain TAC films increased, and the sales volume for all TAC films, including the thin plain type, exceeded the previous fiscal year.
The sales volume of glass substrates for HDDs remained on a par with the last fiscal year, having been impacted by production adjustments by PC manufacturers in the first half of the fiscal year and by some HDD assembly manufacturers being damaged in the Thailand floods in the second half. With market conditions not improving for pickup lenses for Blu-ray Discs™ and DVDs, sales volumes of pickup lenses for optical disks were down year on year.
Orders for lens units for digital cameras and video cameras, which had shown signs of recovery, were suspended by some customers impacted by the Thailand floods, and sales volumes increased only slightly year on year. Meanwhile, despite sluggish performance in the first half, sales volumes of optical units for mobile phones with cameras rose above the previous fiscal year, consequent on an expansion in the models using these products from the second half.
This resulted in sales for the fiscal year in the Optics Business of ¥124.3 billion (YoY -4.3%). The impact of the decrease in profits due to reduced sales and lower prices for some products was offset by increased sales of core products, cost reductions and expenditure cuts, enabling operating income to increase to ¥14.0 billion (YoY +9.6%) even though net sales decreased.