Nikon President and CEO Yasuhiro Ohmura
Nikon published the transcript and Q&A session for the Q2 financial results with President and CEO Yasuhiro Ohmura. In the management update portion of the presentation, Omura specifically highlighted the following regarding the Imaging Business:
- Expanding the User Base: The launch of new products, notably the Z5II-C (and other models), is actively broadening Nikon’s customer and user base.
- Next-Generation R&D Investments: Nikon is continuing to invest in next-generation products to ensure long-term competitiveness. In particular, he noted ongoing development in new image-processing engine technologies aimed at boosting overall camera performance and enabling new imaging experiences.
- Video & Content Creation Market Expansion: The company is expanding its lineup of products and solutions targeted at video and digital content creators.
- Synergies with RED: Nikon is actively generating synergies with RED by combining both companies’ technologies and expertise to deliver enhanced value across still photography and video imaging.
Here are three questions that cover US tariff refunds, rising memory prices, and profit forecast:
Q: Please explain the actual amount of US tariff refunds received and the outlook going forward.
A: Tariff refunds received in the first half totaled ¥6.4 billion on a company-wide basis. Of this amount, approximately 60% was attributable to the Imaging Products Business, just under 30% to the Healthcare Business, and the remainder to the Industry Business and the Digital Manufacturing Business. By quarter, refunds amounted to ¥4.0 billion in the first quarter and ¥2.4 billion in the second quarter. For the third quarter and beyond, more than ¥1.0 billion remains unrefunded. However, because the timing of the refunds is uncertain, this amount has not been incorporated into the full-year forecast.
Q: Please explain the impact of rising memory prices on the Imaging Products Business and the impact of US tariff exemptions for Eye Care products on the Healthcare Business.
A: In the Imaging Products Business, we expect rising memory prices to have a negative impact on full-year operating profit in the high single-digit billions of yen. This is unchanged from our previous forecast and remains broadly within our assumptions. In terms of volume, we expect to secure substantially all of the required procurement volume, including the volume needed for the next fiscal year. However, the outlook for prices remains uncertain.
Q: Why was the operating profit forecast revised downward even though unit sales in the second half are expected to increase year-on-year?
A: Amid a softening market environment, particularly in China, we revised downward both our overall market size projection and Nikon’s unit sales forecast for the second half. Nevertheless, we expect unit sales in the second half to increase year on year as we seek to attract a broad range of users through the launch of new products, including the Z5IIC mirrorless camera. On the profit side, we revised downward the operating profit forecast for the second half, mainly reflecting the above revision to the unit sales forecast.
I am still waiting for Nikon to cut prices after they got the tariff money back. Just a reminder: Nikon raised prices twice last year because of the Trump tariffs.
Source: Nikon
