Today Nikon published their latest financial results. They cut the full year profit forecast from ¥52 to ¥48 billion because of a stronger yen.
Nikon Imaging is doing good - Executive Vice President Ichiro Terato said this referring to the camera division: "If it were not for the effect of exchange rates, we would have achieved a double-digit increase in sales and operating profit for the half year" (source).
Nikon is expecting to sell more photography products but have less operating income. Forecast for interchangeable lenses and compact cameras were revised upward, single-reflex cameras forecast remains the same (table represents estimation for the year ending March 31, 2011 for Nikon Imaging only):
It remains to be seen if the stronger yen will trigger Nikon to do another price increase, like they did few times in the past.
Related posts:
14 Comments
PRODUCE MORE OF THE D3S AND MAYBE YOUR PROFIT WILL INCREASE…..AND BY THE WAY….FIRST…..
I’m hoping you are being sarcastic with that idiotic comment.
In case you are not, Nikon doesn’t make the bulk of its profit with professional camera’s…
Even more perplexing. Why discount everything with instant rebates and then raise prices!!!
“If it were not for the effect of exchange rates, we would have achieved a double-digit increase in sales and operating profit for the half year”
I guess if they would not have the cameras and lenses out of stock … well, that could have made a difference
The prices will definitely be going up in th UK as there’s a VAT (value added tax) increase in Jan 2011 from 17.5% to 20%…I’m trying to get a few pieces of equipment bought before the increase.
“Shares in Nikon have fallen more than 23 per cent since the beginning of the financial year in April.”
if the stronger yen will trigger Nikon to do another price increase, nikon will sell less amount of products and they can dream about a profit.
HAHAHA!
if the stronger Yen will not trigger Nikon to do another price increase, Nikon will sell the same number of products (and each for a loss) and they can dream about a profit.
Over the last few years, Nikon has established a consistent pattern of raising prices in response to higher Yen. They would rather sell less volume at a higher profit, than suffer low margins.
@NR Admin: the question is: is the Yen becoming stronger or the $ becoming weaker…….
Yen is getting stronger.
Same pattern can be seen in comparison to the €.
I can get much less yen with one € than year ago.
Price increase? No D700 replacement? This is me switching to Canon…
This is all of us not caring.
If the proposed Fed action to print a bunch of money to buy bonds has the speculated effect of devaluing the dollar 20-40% you can look forward to a very bad time for the camera manufacturers’ sales in the U.S.