nikon financial results

Nikon has just released its Financial Results for Q1 FY2017/3 that cover sales to the 30th June 2016. Given the current difficulties the Camera Industry is going through it will be interesting to take a closer look at the data and comments.

Contents

  • Overview
  • Previous Forecast
  • Overall Business Results
  • Imaging Segment
  • Camera Market Share
  • Future Forecast
  • Dividend
  • Conclusion

Overview

NIKON CORPORATION is a major Japanese company that has built a reputation as a maker of very desirable cameras. During the latter part of the 20th century they became the Icon of the industry and for many they are still the ‘go to’ brand for Digital Cameras.

Nikon is an independant public company who are 'affiliated' to the large Mitsubishi Organization. Major shareholders are Japanese Banks and Institutions but also there are a high percentage of both Japanese and Foreign Private Investors.

The business is split into 4 sectors:

canon news
  • Q2 2016 Imaging System segment year on year net sales fall -13.5%
  • Operating profit Imaging System segment down -14.4%
  • Overall company net sales -11.7%

It has been evident as the year has progressed that Canon would face greater challenges to sustain their financial figures. Strengthening ¥en, earthquake disruption to production and general falling market for stand alone cameras have all proved challenging.

Todays consolidate results for Q2 FY2016 give a further insight into just how difficult conditions are for camera manufacturers. In Q1 FY2016 year on year net sales for the Imaging System segment fell -10.6%. Would Q2 see a deterioration or would the business bounce back?

At the beginning of FY2016 projections for the full year 2016 were for a fall of -8% Gross Sales Value and -16% in Total Units in the Imaging System segment. This fall was to be mainly due to the demise of the Fixed Lens Compact Camera that was expected to fall -24% by Units in 2016 under intense competition from the Smart Phone.

japanese camera manufacturers

Friday 24th June 2016 saw yet another body blow to the Japanese Camera Industry. With global markets in turmoil the Yen gained against both the Euro and Dollar. This of course is exactly what the manufacturers didn’t want. 2016 had already been a challenging year in terms of exchange rate and this would reverse any improvements.

What the Industry needed was a lower Yen exchange rate to boost the important export markets. Since Feb 2016 the exchange rate had been moving against them but just before that fateful Friday it had started to make some improvements. Now that lay in tatters as the outcome of the ‘Brexit’ referendum became clear.

sony camera market news

Sony reduced its operating profit forecast for the FY2016/3 due to weakening demand for its camera modules made by its devices segment. Operating profit forecast has now been reduced from ¥320B to ¥290B, a drop of -9.4%.

This drop is largely due to an impairment charge of ¥59.6B as projected demand for camera modules into 2017 looks weaker. These camera modules are used both in Smart Phones and Digital Cameras.

Production problems due to the recent earthquake in the Kumamoto region have not as yet impacted on this years results. However, forecasts for next year have been delayed until the full impact of the damages has been evaluated.

Recent news about the fall in iPhone sales and the ongoing fall in Digital Camera sales would back up this assessment of future demand.

Full year results are due out on 28th April 2016.

canon news
  • Q1 2016 year on year net sales fall -10.6%
  • Operating profit down -32.6%
  • Overall company net sales -7%

The first indication of what 2016 will bring for Canon was contained in their Q1 FY2016 financial report just released. Expectations were for a significant fall in the imaging segment so lets see how they got on.

Projections in the last report for the full year 2016 were for a fall of -8% Gross Sales Value and -16% in Total Units. This fall was to be mainly due to the demise of the Fixed Lens Compact Camera that was expected to fall -24% by Units in 2016 under intense competition from the Smart Phone.