As economic conditions took a favorable turn, Konica Minolta achieved an increase in sales, driven by our mainstay Business Technologies Business. Other factors contributing to this increase included the effects of foreign exchange rates, reflecting the persistently weak yen; sales growth of mainstay products; improved product mix due to an increased share of high-end models; and acquisitions. In terms of operating income, profit in the Industrial Business fell, due in part to decreased sales of TAC films. In the Business Technologies Business, however, profit jumped significantly on the back of a sales expansion that lifted gross profit, the effect of foreign exchange rates, and the full year impact of measures to reduce production costs.
Net income grew, due in part to tax effects related to the revision of deferred tax assets in line with reorganization of the Group's administrative structure implemented in April 2013. This growth was achieved despite the posting of impairment loss associated with the withdrawal from the business of glass substrates for HDDs1 and the termination of the Group’s production of film for use in healthcare in order to create a stronger corporate structure.
Furthermore, in January 2014, to increase corporate value, the Company decided to repurchase up to 20 million of its own shares, with an upper limit of ¥20.0 billion, and executed this purchase of treasury stock between January 31 and April 14, 2014.
1. HDD (Hard Disk Drive): A fixed magnetic disk unit
Increased sales in the Business Technologies Business drove an overall sales increase.
Operating income in the Business Technologies Business doubled compared with the previous fiscal year, more than compensating for the drop in income in the Industrial Business. The Healthcare Business also contributed to the growth in income.
Although we recorded costs associated with structural changes aimed at reinforcing our business structure, net income increased year on year due in part to tax effects related to the revision of deferred tax assets.