Nikon: “rapid deterioration in the market occurred”

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Nikon published their Q&A for the third quarter of the Imaging Company which they describe as "rapid deterioration in the market" and "fiercer market competition":

Q: What can you tell us about the revision of the financial forecast in the imaging products business?

A: While we increased production and inventory of digital SLR cameras as one of measures against the risk of floods in Thailand, rapid deterioration in the market occurred late November and continuing into December. That resulted in a reduction of unit prices and additional sales costs in fiercer market competition. This is the main reason of a significant adjustment for Imaging Company which had been making stable earnings, and we have taken this fact seriously.

Q: What can you tell us about forecasts and future plans?

A: Though we expect the market environment for the imaging products business to remain severe in the 4Q, we will be aiming to bring the inventory level on line by the end of this fiscal period. According to the 2013 outlook on DSC shipment forecast announced by CIPA (Camera & Imaging Products Association) on January 31, 2013, the market of compact digital cameras continues to post negative growth and digital cameras—interchangeable lens type is forecasted to show 2-digit growth.

We will try to be more sensitive to changes in the market and make adjustments faster. We will also be reviewing and improving our cost structure including sales and general administration costs again from the fundamentals.

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