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Nikon is doing better than expected, but business is still in “depressed market condition”

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Nikon today announced a revision of their financial results for the year ended March 31, 2009:

Earnings estimates (in millions of yen):

                            revised forecast           previous forecast

 Net Sales            879,000                      860,000    

 Net  Income        28,000                        24,000

"Due to stagnation of consumer spending and demand for investment originating from abrupt deterioration of consumer environment caused by global economic slowdown triggered by the global financial crisis as well as appreciation of Japanese Yen and decline of stock market, our businesses are still in depressed market condition.  Under this environment, we carried out the group wide production adjustment and enhanced our sales promotion activities. As a result of these measures, our Imaging business is expected to achieve higher revenue and profit than our prospects, and our consolidated results are expected to exceed our last forecast."

Source

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  • PJS

    I don’t think they have adjusted for the “not very well accepted” price increases worldwide. I’d be surprised if they make their revised forecast.

  • Anonymous

    What a long-winded way of saying, “Times are tough. We sacked some Thais and put up prices.”

  • Eunix

    Bring back the F4 with a digital back so I can shoot both. My d2h and d100 dO just fine. Yeah I would like a pair of F6′s and D3′s but they are not necessary. Heck I’m cleaning up my old canon FD rigs. New is too pricey. Sell a sensor upgrade kit!

  • http://www.peterlombardi.com Peter Lombardi

    glad to hear that they’re doing better than they thought!

    i’d rather pay higher prices than to watch them slip back behind canon again for years.
    -peter

  • Eric

    i wonder how is Nikon’s Cash level.
    Nikon is not US listed, at lease not on the big board.
    anyhoo, just a thought

  • AZ

    “… enhanced our sales promotion activities … ” – read it as: Yeah we put the prices on the next level, instead of launching cheap d40/d60 replacement we launched more expensive d5000 and to make it cost less we jumped the price of d90 – great promotion activities :)

  • Dweeb

    “enhanced our sales promotion activities” LOL Marketing talk for jacking prices.

  • Visitor

    Note that it said Nikon “forecast”. Bernake in US had forecast that all was under control back in 2008. Read some recent news to get a more qualified idea of what is going on – especially in Japan:
    “Overseas shipments slumped 45.6 percent from a year earlier, compared with February’s unprecedented 49.4 percent plunge, the Finance Ministry said today in Tokyo. Economists predicted a 46.4 percent drop. ”

    http://www.bloomberg.com/apps/news?pid=newsarchive&sid=at4NSsUqNjrI

    There is so much more:
    http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aA4t0jX1CSsU

    “Japan Stocks Slump on Earnings Outlook, Yen; Nippon Steel Falls

    April 28 (Bloomberg) — Japanese stocks slumped, sending the Topix index to its biggest drop this month, on growing doubts corporate earnings will recover this year and as the stronger yen diminished the value of overseas revenue. ”

    So I’d take the above forecast with a grain of salt. Save your money – there will be many Nikon bargains in fall of 2010. Exports dropping over 40% and Nikon forecasting higher revenue and profits. Japanese domestic sales are also collapsing. So who is left to do the buying so that revenues and profits will be higher. Burning tons of cash by bringing out new models when Japanese exports are dropping over 40% also makes as much sense as forecasting higher revenues and profits.

  • Ramon

    The U.S. economy will begin to recover late this year or (more likely) beginning of 2010. Europe will languish longer simply because the EC has done nothing really but blame each other, and they will then get financial religion when they see the U.S. improve. China will also improve because their economy is tied to the U.S. and they have adopted stimulus plans as well. Japan will be delayed due to their herd mentality and not go into recovery mode until everyone else has done so then they will overdo it.

    Before you blast me, this is the same board that thought I was foolish for saying the US Dollar would remain strong, said that the Euro was a stronger currency and that the drop in non-US and Japanese currencies was temporary. And, at least we don’t hold managers hostage when we have a workplace dispute.

    • AZ

      You know that, none what You wrote will change the fact that current global economic crisis is due to stupidness and lack of responsibility of the US bankers and white collars from Wall street. As for perceiving Europe, I don’t want to offend anyone, but how can people who usually don’t even have idea about the geographical location of Europe say something about particular countries. Europe ain’t States, Yes we do have EU with all it’s pros and cons, we cooperate between each other on the economical basis but our banking model differs from country to country. Unfortunately majority of outsiders doesn’t perceive Europe this way, but they put all of this in one pot.
      As for Europe doing nothing, sure we didn’t put billions to the famous white collars, so they could pay themselves ridiculous bonuses. Also it’s EU not EC (that was couple years back) .

  • Ramon

    Bernanke never said all was under control in 2008. Far from it. You really need to check your facts.

    • visitor

      You’re right. I probably misunderstood his statements like:
      Chairman Ben S. Bernanke
      The economic outlook
      Before the Committee on the Budget, U.S. House of Representatives
      January 17, 2008

      “The Federal Reserve has taken a number of steps to help markets return to more orderly functioning and to foster its economic objectives of maximum sustainable employment and price stability. Broadly, the Federal Reserve’s response has followed two tracks: efforts to improve market liquidity and functioning and the pursuit of our macroeconomic objectives through monetary policy. ”

      “Outside the United States, however, economic activity in our major trading partners has continued to expand vigorously. U.S. exports will likely continue to grow at a healthy pace in coming quarters, providing some impetus to the domestic economy.”

      As an aside, ever wonder why Chairman Bernanke would be present at:
      The Bilderberg Meeting at the Westfields Marriott Hotel, Chantilly, VA, June 6-8, 2008?

      http://cryptome.com/bilderberg08/bilderberg08.htm

      Anyhow, back to Nikon’s predictions of increasing revenue and profit. Another news article today should shed more light on the quality of Nikon’s forecast:

      U.S. Economy: GDP Shrinks, Marking Worst Recession in 50 Years

      http://www.bloomberg.com/apps/news?pid=20601087&sid=aeLS30YslYd8

      I believe that the USA is the largest market for Nikon. Now if Japanese Exports have dropped between 40-50% (using their official Japanese Govt figures) and the USA is in worst recession in 50 years, I’m pretty sure that Americans aren’t rushing out, to say Ritz, to buy more Nikon camera equipment.

      Even wealthy American are having their own troubles – high end pawn shops in Beverly Hills seeing huge increase of rather expensive items being pawned to get cash. So I would assume that wealthy Americans are also not rushing out to buy large quantities of Nikon’s new camera gear.

      Nikon expects “higher revenue and profits”. For that to happen, then their sales must also increase. But export buyers are drying up. Domestic Japanese sales are drying up. Where is Nikon going to find all those new buyers so they can have increases revenue and profits?

      Seems that Nikon’s way to try to increase sales lately has been to increase prices. Marketing 101 says that increasing prices will result in lower sales. But Nikon says they will have higher revenue and profits. Time will tell, I guess.

      Nikon does not have deep pockets like Canon or Sony. Wonder which one will buy Nikon in the next year or two.

  • visitor

    Check article in the Photo Rumors section on this site:
    Nikon expects higher revenue and profits while:

    “Ricoh’s net profit fell by almost 94%”

    Dream on Nikon.

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