canon-financial-results

Canon Q1 FY2017 Headlines

  • Overall company Net Sales up y-on-y +22.0%
  • Overall company Operating Profit y-on-y +88.8%
  • Imaging System segment Net Sales up y-on-y +3.1%
  • Imaging System segment Operating Profit up y-on-y +49.0%

Some good figures coming out of Canon Inc. for the first quarter of 2017. Last years negative effects of the rising ¥en have subsided and stable global markets have allowed for some growth. Core businesses have had some growth but the new businesses have been much stronger performers.

nikon news

Nikon Corp. Q3 FY2017 Headlines (Oct 1, 2016, to Dec 31, 2016)

  • Overall company Operating Income up +83%
  • Overall company Net Sales up +2%
  • Imaging Products segment Net Sales fall -23%
  • Imaging Products segment Operating Income falls -51%
  • Restructuring takes its toll with expenses up to ¥53B
  • Troubled and delayed DL range of Digital Cameras - scrapped

Overall Company Results

NIKON Corp. released their Q3 FY2017 results after giving notice of ‘extraordinary loss’ and voluntary redundancy for 1000 older workers. Restructuring the business as outlined in the previous results has come at a cost and the pain is not over yet.

Restructuring is fine if there is a clear plan as to the future direction of the business. With the digital camera market still in free-fall, investors will want to know how the company will maintain its market. The complete abandoning of a segment of cameras that is thought to be one of the more profitable, premium compacts, with the scrapping of the ill-fated DL range will leave people ‘scratching their heads’.

Investors were not impressed and shares fell 15% losing most of the gains made in the last 3 months due to an improving ¥en exchange rate.

Looking at the overall business of Nikon we see a company with rising Net Sales by +2% and improving Operating Income by +83%. This income represents 8.5% of Net Sales and that is a big improvement on the previous year where it was just 4.7%.

Let’s take a look at the overall business structure to see the losses and gains in each sector.

sony news
  • Overall company Operating Income falls -54.3%
  • Overall company Revenue falls -7.1%
  • Imaging Products & Solutions segment Revenue fall -9.6%
  • Imaging Products & Solutions segment Operating Income falls -7.5%

Overall Company Results

Sony financial report for Q3 FY2016 shows a better but still negative revenue growth at -7.1% for the quarter. Operating Income is still taking a hit from an impairment in the Picture segment and from the strong ¥en that is hurting exports, down -54.3%. Forecasts for the rest of the year are a slight improvement in revenue but further falls in operating income to come. Still, shares are up +5% on the day so not as bad as analyst had feared.

nikon news

H1 FY2017 Headlines (Apr 1, 2016 to Sep 30,2016)

  • Overall company Operating Income up +56%
  • Overall company Net Sales fall -13.8%
  • Imaging Products segment Net Sales fall -32%
  • Imaging Products segment Operating Income falls -37.2%

Overall Company Results

NIKON Corp. released it’s H1 FY2017 results at a time of great volatility in global markets just a day before the election of Donald Trump as US President. Stocks were down -6.56% on the first day of trading but it’s difficult to attribute blame in this instance.

Looking at the overall business of Nikon we see a company with falling Net Sales by -13.8% but improving Operating Income by +56%. This income represents 6.8% of Net Sales and that is a big improvement on the previous year where it was just 3.7%.

So Nikon despite a difficult year has been able to cut costs and produce better value for investors. However, these results miss the latest previous forecast on Net Sales by -4.5% but improve on Operating Income by +1.3%. This previous forecast was already for a 10% drop so Net Sales are a problem.

Nikon remain a solid profitable company that has a long history in technology and a following that is loyal and supportive. There are severe underlying issues that have yet to be fully addressed and hence the management have ditched their Medium Term Plan and set in motion a new 3 year recovery plan. Let’s take a look at the overall business structure to outline the issues.

olympus news

H1 FY2017 Headlines (Apr 1, 2016 to Sep 30,2016)

  • Overall company Operating Income falls -31%
  • Overall company Net Sales fall -12%
  • Imaging Business segment Net Sales fall -28%
  • Imaging Business segment Operating Income loses ¥1.4b

Overall Company Results

Olympus released the first half results for the FY2017 on the same day it formally announce the new flagship mirrorless camera, the OM-D E-M1 Mark II. The new camera carries a hefty price tag and Olympus will be hoping it can help stem the loses in the Imaging Business in the second half of the year.

Overall, the business sales have been flat when the effects of unfavourable exchange rate have been taken out of the equation. Operating Income would also look much better without the forex issues of a strong ¥en. The problem is the exchange rate issues just don't go away and hence the results are, whilst better than previous forecasts, quite poor. Operating Income has been improved by 18% from the previous forecast by reducing SG&A expenses.