Nikon increased operating profit forecast for their fiscal year by 7.7%

Nikon issued a revision of their financial forecast for the fiscal year ending on March 31, 2018. The company increased their expected operating profit by 7.7%:

Regarding the first half ending September 30, 2017, the operating profit of the Imaging Products Business and the Precision Equipment Business are both expected to exceed the previous forecast due to the following reasons.

In the Imaging Products Business, the costs related sales, promotion and R&D are effectively controlled, and the yen depreciation trend against the euro also works as a beneficial factor. In the Precision Equipment Business, while some sales of the FPD Lithography Systems has shifted to the second half, service businesses are extended and cost reductions are being implemented. In addition, corporate profit (loss) which cannot be attributable to any reportable segments is improved. Based on these situations, consolidated financial forecast announced on August 3, 2017 is revised as above. Consolidated financial forecast for the full year ending March 31, 2018 is currently under thorough review and will be announced on the release of the financial results for the second quarter of the year ending March 31, 2018.

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  • TwoStrayCats

    Mmmm, D850 good for company!!!

    • I think they got a lot of D850 pre-orders 🙂

    • Abiatha Swelter

      Actually delivering products that customers have been waiting for is generally good for the bottom line.

  • HD10

    The D850 is doing well and the mirrorless camera will likely add to the profit of the D850.

    • Eric Calabros

      “promotion and R&D is effectively controlled” means cost-cutting

      • HD10

        Nikon likely focused it’s R&D on mirrorless cameras which explains why we got the D3400 and D5600 (when it could have just kept the D3300 and D5500).

        It will be interesting what form direction the new APS-C mirrorless will take on … F-Mount or new mount to gain some size and weight reduction? Will these be directed against the Canon EOS, Fuji X or Sony’s E? How capable will any F-mount adapters be?

        As to the 35mm or “FF” mirrorless, would Nikon retain the F-mount or will it introduce a new mount along with an adapter to allow the use of its F-mount lens libraries? Will Nikon flagship mirrorless go for broke in terms of features and capabilities or will this initially be a replament for the D610 and even the D750?

        As to sales promotion, Nikon will liekly reduce prices on all its pre-D850 caneras to generate good year end number by the end of its fiscal year as the mirrorless introduction now seems to be done within 2017.

    • Thom Hogan

      You might want to read the chart more closely. Sales are under the estimates. Profits are above the estimates. That’s cost cutting. Moreover, Nikon specially called out cost cutting.

      • HD10

        Thank you for pointing that out Thom. I see it but thought perhaps there is only so much that they can do in terms of cost-cutting to realize profits before there will be none to cut as Nikon has been at it for quite a bit of time already. So perhaps part of the profit is coming from D850 sales despite the revised projected sales that is now lower by 3 Billion Yen.

    • Davidvictormeldrew Idontbeliev

      need for them to add some more lenses to the mix in both F Mount and mirrorless.

  • MB

    This is a good news but things are not great…
    Nikon is doing worse this year than last… and mind you that according to CIPA this year was better for camera sales so Nikon is still losing ground…
    Let’s hope that D850 will help to improve the results till the end of fiscal year in March 2018

    • Thom Hogan

      Exactly right.

    • That is true, but keep in mind that they had a horrible 2 years with canceled products, no major new camera releases, no mirrorless, restructuring… so I still see this as a very good news after almost two years of nothing but bad news. The D850 is also a step in the right direction.

      • Andrew

        Agreed. And the D500 launched with an amazing list of features… then the D850 came, and it did likewise… and now we are anticipating a full-frame mirrorless camera with industry leading specs… so yes, Nikon is giving us every indication that they are indeed moving in the right direction.

        • Andrew, I needed you when we got invaded by Sony trolls 🙂

          • Andrew

            Peter, I recused myself because of a potential conflict of interest. I have too many Sony TVs, Desktops, Laptops, Headphones, Mics, Camcorders, and Gaming Consoles 😉

            But I must admit that Sony has not won me over from Nikon, so I could still be impartial. I took keen interest in the recent debate and thought that overall you handled it right 😉

            • Hehe, thanks 🙂

  • ZoetMB

    I’m surprised they didn’t wait another week and announce this along with the second quarter numbers (which won’t really reflect many D850 orders anyway).

    • Eamon Hickey

      It’s a compliance thing — I’m not sure under exactly what conditions they’re legally required to give notice of a change or deviation from their previous forward-looking statements, but they issue updates like this to stay out of trouble with regulators.

      Just looking at the synopsis provided here, this looks like an update for the first-half numbers, not for the full fiscal year. In other words, they are previewing what they will release in a week or two.

      The synopsis here states that full-year forecasts are being reviewed and will be updated when they release first-half numbers next week. It’s likely, but not guaranteed, that they will forecast a higher profit for the full-year at that time.

    • Andrew

      Nikon may have decided to make this announcement to prevent speculations that its plant closing was due to some negative factors.

  • Wildness

    This is why being patient for your D850 is good for you. Don’t be lured to the Cult of Sony by a rebadged A7rII.

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