Nikon reports “extraordinary loss”, “fundamental company-wide restructuring”

• 7 years ago
• Categories: Other Nikon stuff
• Tags: extraordinary loss, Nikon financial results

In addition to canceling the DL line of premium compact cameras, Nikon also issued several statements describing “extraordinary loss“, “fundamental company-wide restructuring” and a revision of their last financial forecast:

Notice of Recognition of Extraordinary Loss

As announced in “Notice of Restructuring” released on November 8, 2016, Nikon Group is currently under a fundamental company-wide restructuring to improve its corporate value as shifting from a strategy pursuing revenue growth to one pursuing profit enhancement.

In accordance with this restructuring, the Group recorded extraordinary loss of 29,790 million yen, mainly incurred from inventory write-downs/write-off in Semiconductor Lithography Business, as restructuring expenses for the nine months ended December 31, 2016.

Result of Solicitation for Voluntary Retirement

For approximately 1,000 workers a special retirement benefit will be paid in addition to the normal retirement benefit. Re-employment support services will also be provided on request.

Revision of the Financial Forecast for the Fiscal Year Ending March 31, 2017

Regarding the consolidated financial forecast for the year ending March 31, 2017, despite the continuous boom in sales of FPD Lithography Systems in the Precision Equipment Business, consolidated operating income as a whole is expected to fall below the previous forecast, impacted by the sluggish and shrinking markets of digital cameras in the Imaging Products Business and industrial metrology equipments in the Instruments Business.

As announced in “Notice of Restructuring” released on November 8, 2016, Nikon Group is currently under a fundamental company-wide restructuring in order to enhance our ability to generate profits and create value. And an extraordinary loss of approximately 53 billion yen in total, including the expenses related to “Result of Solicitation for Voluntary Retirement” and “Notice of Recognition of Extraordinary Loss” released today, is expected to incur as restructuring expenses, which is 5 billion yen increase from the previous estimate of 48 billion yen in “Notice of Restructuring” released on November 8, 2016.

Update – see the recap on the latest Nikon financial report from Nasdaq:

• Nikon Corp. reported a net loss to owners of the parent of 831 million yen or 2.10 yen per share for the nine months ended December 31, 2016 compared to profit of 18.71 billion yen or 47.08 yen per share, previous year.
• In accordance with the restructuring announced on November 8, 2016, the Group recorded extraordinary loss of 29.79 billion yen, mainly incurred from inventory write-downs/write-off in Semiconductor Lithography Business, as restructuring expenses for the nine months ended December 31, 2016.
• Nine-month operating income increased by 67.1% year on year to 42.18 billion yen, and ordinary income increased by 42.5% year on year to 44.79 billion yen.
• Nine-month net sales were 565.89 billion yen compared to 616.50 billion yen, a year ago.