Nikon announced Q2 financial results

In addition to the third notice on the floods in Thailand, today Nikon announced also their financial results for the second quarter of the 2011/2012 year (ending March 2012). Nikon lowered its sales and operating income forecast as well as DSLR camera and lens production as a result of the situation in Thailand.

Nikon will increase its production in other facilities across the world in December. Nikon Thailand is expects to start operations in January 2012 and have full-scale production restored by the end of March, 2012.

In the next few months sales efforts will concentrate on the new Nikon 1 mirrorless system. Nikon is already aggressively pushing their CX cameras with various marketing campaigns and tours to the Nikon 1 factory in China for pretty much anyone that can spell N-i-k-o-n.

Summary for the First Half of the Year Ending March 31, 2012:

  • Sales and income grew 15% and 76%, respectively.
  • SLR-DSC and interchangeable lenses responded the robust demands.
  • Compact DSC posted 17% sales increase in spite of market shrinkage

Estimation for the year ending March 31, 2012:

Thailand floods impact on FY2012 forecast - damages suffered by Nikon Thailand:

  • Nikon Thailand, located in Ayutthaya Province in Central Thailand, was flooded, and its operation has been suspended since October 6. As of November4, the operation remains suspended.
  • Nikon Thailand manufactures SLR-DSC and interchangeable lenses (IL).

Second half volume assumption for IL and digital cameras w/ IL:

  • Alternative production is scheduled starting in December 2011 in Nikon group plants worldwide and partner factories in Thailand. They are expected to gradually increase the alternative production volume.
  • Nikon Thailand expects to gradually resume its operation starting in January 2012.
  • It is planned that the full-scale production is restored at the end of March, 2012.

Financial impact by floods based on the above plans(2ndhalf of FY2012 in Imaging Company):

  • Negative impact -Sales: 65.0 billion yen; Operating income: 25.0 billion yen

Summary of Estimation for the Year Ending March 31, 2012:

Downward revision of the yearly forecast is inevitable due to Thailand floods: however, both sales and income are expected to improve year on year.

  • It is planned that SLR-DSC and IL production gradually restore to the original level by the end of March, 2012.
  • Sales efforts focus on “Nikon 1” that has been favorably accepted since its launch in October.
  • Compact DSC with improved competitiveness enjoy brisk sales.
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  • Sean G

    I’m not sure of any other way to contact you, but I have a question.

    Is there any indication that Nikon is looking to compete in the ‘C300’ market released yesterday by Canon alongside the Red ‘Scarlet’?

    • AnnoyingOrange

      I don’t think they have plans to do so for the next 5 or more years.. Canon already has a foothold in consumer video and is ahead in the DSLR video game against Nikon. Nikon has primarily been an still imaging company and their DSLR video capabilities are still a little behind.

      • And still, Nikon was the first company who introduced video shooting function in DSLR, wasn’t it?

        • i dont think it really matters who came first, though it would be really cool for nikon if they did enter that market. kodak was the first company to introduce consumer cameras… wonder there they are now…

        • I shoot Nikon

          Actually, only reason why Canon wasn’t first to add video function to the DSLR was to avoid cannibalizing their dedicated line of video equipment. They wanted to keep those two product segments separate for as long as possible, but once Nikon fired the first shot they had no choice but to take Nikon to school. Canon was definitely successful at holding on to their professional market share, while completely taking over the serious enthusiast market and rightfully so, but the casual video-users and some video enthusiasts are now up for grabs, so I’m sure Nikon is not complaining.

      • AnnoyingOrange:

        Can you please explain specifically how Canon is ahead of Nikon in the DSLR video game?

        • AnnoyingOrange

          Just take a look at how many videos are made with Canon and Nikon DSLRs. You can also watch the 6th season finale of House. While it is the user that creates the video, the right tool helps a lot. Canon DSLRs offer better video than Nikon right now. That’s coming from a Nikon user.

        • tigrebleu

          IMHO, Canon is better at video than Nikon for a few reasons:

          1) More efficient video codecs (both for file size and editing purposes).

          2) More user control (real audio input level control in some DSLRs, 24/25/30fps in 1080 and 60fps in 720)

          3) Better integration in many DSLRs (7D, for instance) but not all (5DII, 1DIV)

          4) Utimately, better image quality (as far as I’m concerned, only the D7000 can rival with Canon DSLRs, and only with the Rebel series — the 7D and 5DII are still better at video than Nikon DSLRs).

          Hopefully, that will change in the future, and Nikon will introduce better video in its DSLRs. Right now, as it is for me, I shoot stills with Nikon DSLRs and I rent Canon DSLRs or pro vidcams for video! 🙂

        • Plamen

          Can you please specifically explain how Nikon is better in video than Canon?

      • Andrew

        I think the introduction of the Nikon 1 and Expeed 3 processor is an indication that Nikon is serious about enhancing video capabilities in their cameras. When the next generation DSLR cameras are introduced with Expeed 3, I expect Nikon to seriously take on Canon in video performance.

    • I seriously doubt that. Canon and Sony have a history of making video equipment, it will be too much for Nikon.

      • Worminator

        They do have a lot on their plate right now, true, but I wonder if it is really *that* hard to come up with an F-mount video camera. No way they could rival the C300 system (7 new lenses, yowee!) but as a reconfigured dSLR-level system, something more in line with the Sony VG-10, it seems to me they could gain some sort of foothold if that’s what they really wanted to do.

    • I believe video is for Canon and Sony, while Nikon will currently focus on the mirorless cameras for a few years.

    • goldacess

      I would first ask how big that market is the C300 is targeting. AFAIK it’s not huge and already becomes “crowded”. Not a good place for a complete newcomer (in exactly this market – which is way different than DSLR-Video).

  • I

    Wish to see that plant

  • AnoNemo

    NR Admin,
    Is there any way we can make a table/post that lists all Nikon items where they are made before the flooding. The reason why because this could help others to find alternative products in case the shortages would hit hard. (April 2012 is far away 🙁 )

    • The invisible man

      They can be made in Japan but have some parts comming from Thailand, so no point having that list.

    • I do not have a detailed list of what is made where, I know that generally consumer products are produced in Thailand, pro in Japan. Should we start a thread where everyone lists the equipment they own and where it is made?

      • The invisible man

        Sure, why not:

        SB-900 JAPAN
        AF-s 14-24mm f/2.8 JAPAN
        AF-s 24-70mm f/2.8 JAPAN
        AF-s 105mm f/2.8 micro JAPAN
        AF-s 50mm f/1.8 CHINA
        AF-s 200mm f/2 VRII JAPAN
        D5100 THAILAND
        D800 NOWHERE

        • Richard

          @The invisible man

          “D800 NOWHERE”

          I thought production was to be sourced in Shangri-La.


      • D5000 – Thailand (still on the run after ~51000 actuations)
        18-55 kit – Thailand (inconsistent AF after one year of extensive usage)
        50/1.8 G – China
        105/2.8 G VR – China (my fault – it fell on the asphalt and now considered almost dead)

        I’m in trouble.

        • T.I.M

          You AF-s 105mm f/2.8 is made in China ?
          What is the serial number ?

          • S/N: 2036458

            • The invisible man

              @Slow Gin
              Oops ! Not good !
              (don’t worry I’m sure your lens’s quality is fine)

              Mine was made in Japan, it will keep more value that the ones made in China because people prefer the “made in japan”.

              The firsts AF 50mm f/1.8 were made in Japan (the ones with the very thin focusing ring) and they sell on Ebay for much more money compared to the ones made in China.

              Where did you buy your lens ? In USA ?

            • I’m from Ukraine and bought 105 VR in a local store.

          • broxibear

            Hi The invisible man,
            If you want to find out where your lenses were made look them up here, it lists by serial number and release date which country they were built in

      • AnoNemo

        NR Admin,
        Yes, it makes sense making a thread or if we could out together a survey it would make it easier.

        What I had in my mind is to create some kind of tracking tool that would help many to see what they can expect. Of course things change and it may have to be updated but let’s see what we can do since Nikon is quiet.

        Ok, first step

        Let’s list what “was” made in Thailand.

        • Ok, I will do a post about it, give me few days.

  • Carter

    who’s gonna buy the C300 for 20000$ !!! even the EOS 4K for i dont know how much, i’ll go with the Red cameras they are cheaper best quality ….

    • Carter

      i forgot to say that i think Nikon is fucked in video now

    • Richard

      There is a market for video equipment in that price range…for TV shows and so on. You should Google “The Deadliest Catch” and their use of video equipment on board the crab fishing boats. They use quite a bit of Sony equipment in that price range. It is not intended for the casual user. The use of the Super-35 size sensor replicates the DOF and other qualities of film in a digital format. This is a much larger sensor than in previous Canon dedicated video cameras which have been used to record a lot of wildlife and other documentary productions you may have seen on the National Geographic Channel among others. It’s a big deal.

      • ZoetMB

        And there are just as many reality shows using far cheaper equipment. Check out “Storage Wars” on A&E. There’s lots of shots where you can see the other camera people and while I can’t tell the exact model, it all looks like semi-pro equipment in the $1700-$3000 range. And that’s A&E’s highest rated show.

        There actually isn’t that big a market for equipment in Red’s price range and most of what there is is actually a rental market.

      • Richard

        “And this just in…”

        It seems that Red has announced their 4k Scarlet camera for just under $10k.

        Canon may have their work cut out for them competing with that.

  • Richard

    Thom Hogan says that Nikon expects to resume full production in April 2012.

    That is a very long time indeed. One has to wonder what changes will be made in their product lineup because of all the delays. Will some be skipped because the delay will be utilized to finish development of the next generation product? And what about sensors? I see that as being critical, what with the Sony plant in Thailand being flooded as well. Is there any word about alternative sensor production sources? Certainly Nikon must have been making arrangements, but where? Korea? Taiwan? USA? (Intel have been seeking business as a fab for other companies.)

    As to video, Canon have so many more generations of experience that it is difficult to imagine Nikon have the capability to produce a competitive professional video camera such as Canon have just announced.

    There were many lenses in the Nikon lineup in need of updating prior to the natural disasters. One has to suspect that those projects will fall even further behind in the current circumstances. With the current position of the Yen (despite efforts of the Japanese government & central bank to reverse the trend) Nikon faces quite a dilemma. Keeping production in Japan to the greatest extent possible at the expense of production capacity and exchange rates making them uncompetitive is something of a Hobson’s choice. Thailand represents something of a cost saving opportunity, but then so does region based production, e.g. North America & South America, for sales in those regions.

    Does Nikon have the ability to meet these challenges? I suspect that Canon will stress Nikon to the limit, if not the breaking point, in market terms. Their management seems more flexible and have embraced technology well ahead of Nikon in the past (USM & IS for example).

    • The invisible man

      NOBODY can say or predict when Nikon will be able to get back to production in Thailand because nobody can predict the floodings, it may be still rain for weeks…or months.

      And the flooding in Thailand is not just water to be pumped out, most of the country is in a bad shape, you still need people to run the factory, truck to transport the production, electricity, water (yes, clear nice water), etc…

      It will take time and money, be ready to pay extra on your next Nikon cameras !

    • samson

      i am sorry to say, but nikon is dieing .within 7 years the brand nikon will only produce small digital cameras like nikon 1 and production on dslr’s will stop.
      If nikon wants to survive they need to reorganize and put more effort into pro film dslr’s.
      I am a nikon user but i am selling all my nikon gear and go to sony instead, because nikon is to expensive for the quality they offer.
      If people are wise stop buying obsolete nikon gear and start buying real pro stuff like canon and sony.

      • 7 years? Where did you come up with the number? Nikon is doing just fine, if you don’t count in the floods. They don’t need to make pro film DSLRs because there aren’t many being made out there, so there isn’t a lot of market to get in buying their stuff. And their SLRs are already great.

        If you meant they need more movie options in the DSLR, then that’s a bit weird as well. They’ve got AF better than Canon, which is a big step. Not even Nikon knows what’s going to happen in 7 years.

        Buying Canon and Sony has nothing to do with being smart.

      • The invisible man

        Smoking canabis on NR forum is totaly prohibited.

  • ScoWill

    I hope Nikon does not expect sales of the 1 series to carry them for the next 4-6 months…

  • DW

    The Nikon mirrorless was a huge letdown. If that’s how they plan to make money, I wouldn’t buy any stock. I really thought this was going to be a big announcement year for them but it’s looking like they might fall behind a cycle. I don’t see any plans for a d3s, d700, or d300 replacement even announced till Q1 next year with a release maybe by summer. And there is no way they will release 3 cameras so 1 or 2 of these models will be significantly behind. The D300 is already really far behind and with the Canon 1Dx announced, I imagine this puts pressure on the d3s replacement. I think you will see a D3s announced maybe q1 and available by summer, a D700 not announced till next fall, and the D300 taking a backseat. Not to mention, supply will be LIMITED at best if they do arrive. It won’t be a great year.

    • samson

      if you’re wise sell your nikon shit and buy real equipment that is your money’s worth.
      i have used niko gear for all of my life and i am furrious when i see those nikon prises today, that brand should be ashamed for ripping of peoples.

      • mikils

        you’d better go and be ”furrious” somewhere else. someone who preaches (choice of word is not random) about selling Nikon gear and go soft, sorry I meant Sony, has tapped the wrong website… or has he?

  • It’s okay, but where the hell my D800?

  • Been there guy

    @ Slow Gin

    You just jinx it… Slow coming

  • wtf

    seriously hate this waiting game. my d700 /s are getting a work out. my back up is a d7000 that I haven’t touched. so we are just supposed to sit still and be ok that our competition has fresh gear that is superior to our 3 year old cameras? wtf nikon. has anyone experimented with the sony a900 ??

    • Why haven’t you touched your D7000? It’s a FANTASTIC camera and my primary body since I bought it. Try it, you’ll like it! 🙂

      • In fact, if you want to get rid of your D7000 let me know, maybe we can strike a deal 🙂

    • Dear “wtf”,
      Please get rid of the sound on your website. Or at least disable aut0-play by default. Squawking web pages died with web 1.0. They piss people off. Potential clients may close the tab on your page before they even see your work.

      Work–there’s an important word. Many potential customers will browse on their lunch break at work. Squawking pages will definintely piss them off.


  • The invisible man

    I told you guys, by the time we get the D800 it will be called D900 !

  • ActionJunky

    Judging by the lack of comments on the recent Nikon news and the amount of press Canon and Sony are getting, Nikon should wake up. Beg, Borrow, Steal, but get the job done. V1, J1 are a new breed, but border-line innovative and class-leading. I love Nikon products, but they are not pleasing customers lately.

    • If Nikon has no opportunity to bring desired gear to market due to tsunami in Japan and flooding in Thailand, the marketing team should provide us full info about upcoming/delayed products to convince us to keep our pockets thick. THIS IS A NO BRAINER! Silence is killing. We’ll wait for the date of release for another 6-8 months, but announcement should be done yestermonth! It is too late, Nikon. You just try our patience and this is just insufferable.

      As an average user I have to choose between existing D700 and mythical D800. I needed FF body yesterday, 3 months ago, 8 months ago but I still shooting with tiny D5000 which is epitome of ridiculousness when it comes to VF size and clarity. Heck! I hate crop factor. Crop is a waste of lenses, it limits me in DoF control, object distance and many other very important things. And I know I’m not only one here. As a former Canonist I have no regrets on leaving big ‘C’ family, but I kinda upset on big ‘N’ for ignoring crowd’s prayer.

      Nikon, even if you can’t bring us new FF body, make shelves of local stores full of D700’s. I can’t find one everywhere and never could…

      • NikonD80Still

        I will sell you one. Where do you live? I can ship to you.

      • I

        here you can have d700 almost every time in stock

      • Deevy

        The second you announce a new product you kill sales of the old (and the price).. and the old products are still selling well.

        • Richard


          So just how are the sales of the 1Ds MK III and 1D MK IV doing? Canon must be forced to pay people to haul them off, eh?

        • Dr SCSI

          Not to mention the possibility that Nikon waited for Canon to show their cards first. If Canon presented a Royal Flush, Nikon is going to need 5 aces! And they can’t do that without a bunch of Jokers! So if the D4 isn’t any better than Canon’s current flagship, the old saying of Silence is Golden, may just have some merrit on the bottom line at Nikon.

          • Richard

            @Dr SCSI
            Apart from Nikon’s corporate culture, which is to play their cards close to the vest, there is no doubt that Canon and Nikon have “opposition research” operations that gather much more information than we have access to about each other’s projects. There are probably a lot of gaps in their information and some disinformation intended to obscure what their real intentions may be.

            Without evidence to support the proposition I still suspect that Nikon have multiple prototypes from which to choose based, in large part, upon sensor performance, image processing and other factors. Doing so gives them the opportunity to exploit the technology which emerges more quickly and the ability to respond to the competition.

            The Yogi said “When you come to a fork in the road, take it.” Canon have done so, choosing the branch in a different direction than one would have guessed based upon their past choices. In point of fact, it appears that Canon have scaled back their ever more pixels approach for something much closer to Nikon’s approach of favoring pixels with greater signal to noise ratios for better IQ at higher ISOs in their 1D X announcement. It is unclear at this point whether the 1Ds MK III will be discontinued. It would not be surprising for Canon to offer it for some time to gauge the market. The downside is probably that the production line capacity could better be used to turn out the new body if demand for it is as great as Canon hope it will be.

            I think Canon were in a position where they needed to show the next product’s capability to keep their current user base from preparing for upcoming events by changing to a known product (D3s) that outperforms what they have when it comes to shooting the Olympics next year or other events where Canon have had difficulties.


            • happysnapper63

              “Canon have scaled back their ever more pixels approach for something much closer to Nikon’s approach of favoring pixels with greater signal to noise ratios for better IQ at higher ISOs in their 1D X announcement. ”

              They are more straight about it than that, in their powershot range they are blatently pushing the benefits of only 10mp meaning bigger pixels and better low light performance, referred to as HS models. They are now offering HS and high res versions, and I suspect they will do the same with SLRS.

      • Ken Elliott

        >> “As an average user I have to choose between existing D700 and mythical D800.”

        I’d say you had to choose between the best overall camera Nikon makes vs. hoping they come out with something newer and maybe better.

        >> ” I needed FF body yesterday, 3 months ago, 8 months ago but I still shooting with tiny D5000…”

        Sounds like you sacrificed your photography to your desire for the latest and greatest. Yet there is still no D800 in sight. You might consider a used D700, so you will lose little on resale.

        • >> Sounds like you sacrificed your photography to your desire for the latest and greatest.

          I know exactly what I need. What’s wrong with that? If I were a dentist with thick wallet, I’d choose Leica S2 for the sake of coolishness and THAT look. But for a man who grew up on film with convenient tools (e.g. large and bright VF, fast prime lenses, etc, etc) it feels pretty constrained to look through small finder and know that you lose 50% of AoV on those hideous 1.5 crop sensors. That’s the point, period.

          By the way, there’s nothing bad in desire to choose between two models if there would be such opportunity. If D800 would be out of my style, there will be zero problem to acquire outdated D700, because this is a really nice camera.

  • Canon keeps announcing new gear, it would be nice if Nikon threw something out there even if it isn’t available yet. Seems like they know when production will pick up, why not get some talk about Nikon in the photo world. If not the D800, how about a few lenses?

  • The invisible man

    From the web:

    Negative information for everyone waiting around on the Nikon D800. We have been expecting a announcement ahead of the stop of the month by Nikon with some particulars on the launch date of this considerably predicted camera, but regrettably because of to the storms and flooding in Thailand we are hearing that the D800 will be delayed along with the rest of Nikon’s cameras. This is a devasting blow to the supply chain for all of Nikon’s goods, as they are expecting delays on all of their cameras, not just the new releases. This happens at a vital time with the vacations coming up. Hopefully Nikon can get things sorted out in Thailand, wherever there factory is 8 feet beneath water as we speak. There really is nothing that Nikon can do until the rain stops and the waters recede.

    Nikon D800 AlternativesHowever, if you are in dire require of a great digital camera, you can still get the Nikon D700, or everyone of Nikon’s DSLR cameras. There are a good deal of wonderful possibilities for individuals that were waiting around on the D800, and you can certainly locate one to maintain you around right up until the D800 happens out.

    Nikon D800: Pushed Again FurtherThankfully there was no a single damage in the flooding that performs for Nikon, which is the most important issue. We are wishing Nikon a speedy recovery from the flooding. They have been hit especially challenging by organic disasters this year, with the earthquake in Japan, and now this flooding in Thailand. Pretty unbelievable stuff that Nikon has had to go by way of this yr..a nightmare calendar year for them on all accounts.

    With the current release of the tentative D800 specs, everybody is obtaining more and much more anxious around the launch date of this fantastic digicam. Will not get me improper, the D700 was a excellent digicam and nonetheless is, but it has aged and wants an update. The camera specs that were unveiled a minor even though back, present that the substitution for the D700 will be a game changer and rewrite the electronic photography rule book. This digicam will lead the way as the megapixel champion, at 36 megapixel. This is a huge sensor, which will permit you to consider the highest quality and size images of any complete frame digital solitary lens reflex camera. So now that we have a teaser of the specs on the D800, we are antsy to listen to much more about this camera and get on the pre-purchase record, which will unquestionably fill up quickly. Even though this digicam is pegged to be in the ,000 dollar assortment, it will offer quite properly. This is at the leading of the line and will increase the D line of cameras by Nikon. Will not let the cost tag fool you, since skilled photographers can make this quantity of funds back very rapidly with a few of higher top quality shots.

    So now that we know some of the stats of the shortly to be unveiled Nikon D800, it is time for Nikon to launch some data on this digital camera in conditions of a launch date. We will of course retain you posted on any news in this realm, but with an announcement from Canon coming shortly on new cameras, assume one from Nikon prior to or soon after the announcement from Canon. It is wonderful to be a client with 2 fantastic firms competing from every single other. They get to battle it out in the marketplace, and we as shoppers get to experience the benefits and rewards of their tough operate. They clearly enjoy their jobs, so we do not feel also lousy for them, but it has to be challenging perform to be always coming up with new items and styles. Well enough of a sidetrack…keep tuned and get all set for the Nikon D800 launch date.

  • cameramm

    I just saw, that canon showed the 1dx at a photo show in London … so the camera is ready! Not a dummy! This is an alert for Nikon to show the D4 pretty soon! Pros make decisions for next years sport events! Just show the camera and everyone will wait, every delay in just showing the new flagship will cost pro photographers, i am sure. But if the new camera is not ready developed – help god! Then canon has a ready brand new camera, and Nikon lost the advantage of the last years, when they had the big comeback. There will be no more unsharp canon cameras that will help nikon in the future …. I don’t mention the new very light super tele lenses – another part where nikon falls far behind …

  • 120-300 os

    Nikon stated just some minutes ago on bloomberg nikon back to normal production buy and of march 2012

  • SouthAfricaShortage

    This is from Nikon Supplier in South Africa

    Nikon DSLR stock shortages:

    We are totally out of D3100, D5100, D90 & D7000 due to our factory in Thailand been under water.
    We apologize for the stock shortage, but will be out of stock for November
    There may be additional stock available only early December, but this still needs to be confirmed by Nikon

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