Nikon Reports “Extraordinary Loss” – What Does It Really Mean?

by planetMitch2 Comments

We’ve been worried about the health of Nikon for a while because of their financial difficulties, but this financial report can put the real scare into the meek. 

And you’ve probably read plenty of reports of the impending death of Nikon based on the news… but is that really what is going on? I urge you to watch the video at the bottom from Tony Northrup – it goes into some great detail on what the report means (saving me from a lot of typing LOL).

The big takeaway is that in the financial world, “Extraordinary Loss” simply means they’ve taken a hit and are writing off some bad investments. It doesn’t mean the world is ending.

It is amazing to realize that Nikon has been around for 100 years!

But they’ve also had some financial difficulties over those 100 years as do many companies (even Apple LOL!). But 100 years also means they’re pretty resilient and maybe they’ve just made some mistakes.

Related: Nikon Pulls Out of Professional Video 

So, I don’t think this means you won’t have Nikon to kick around any more, but you may see them be a bit smarter about what they’re doing. I still expect to see some amazing cameras and lenses from Nikon!

Nikon Reports “Extraordinary Loss”, “Fundamental Company – Wide Reconstructuring”

Via Canon Rumors:

Nikon’s financials have been released, and they’re not good.

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.

Read full article at Canon Rumors “”Nikon Reports “Extraordinary Loss”, “Fundamental Company – Wide Reconstructuring””

@Tony Northrup’s take:

 

Note: it is our policy to give credit as well as deserved traffic to our news sources – so we don't repost the entire article – sorry, I know you want the juicy bits, but I feel it is only fair that their site get the traffic and besides, you just might make a new friend and find an advertiser that has something you've never seen before

(cover photo credit: snap from Canon Rumors)


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Comments

  1. David Burckhard

    Tony,
    No one has a better grip on the state of Nikon today than you do. At least no one who is publishing now. I agree with everything you say. I’ve been a Nikon fan and shooter since the ’70s and most likely will continue with the brand for as long as they’re around. However, just as with my experience with Apple since 1983, my favorite brands are also the ones that frustrate me the most. Most of my complaints is that follow a model set by Sony back in the ’70s as well and that is: Consumers and users really don’t know what they want. We deeply entrenched and we’ll make what they need. That philosophy spawned the Walkman, high-quality compact CD players, and really useful handicams. But while that same philosophy gave us the Mac and iPhones, it also gave us the Newton and a really horrible set of computer hardware too.

    Knowing that it has to remain in business, Nikon has to learn to remain relevant. They know better than anyone of the threat that smartphones pose but they seem to have this Detroit car maker mentality of “make mediocre and they will come because we’re Detroit!” It seems the first company to offer a DSLR capable of video now is last when it comes to cameras we’d like to use for video. I’m a “hybrid” photographer/videographer who is in a quandary when it comes to camera selection for a project. My D810 shoots fabulous video (I record to an external, high bit rate recorder) but it’s horrible in focusing. My rented Sony a6300 performs better and the newer 6500 shoots a better looking 4K.

    Nikon needs to be more receptive to current wants and be more open kimono with loyal customers. That doesn’t mean it ignores its own innovation. Nikon is the least transparent camera company out there. It certainly is the least engaging. Buyers buy with as much their hearts as with their brains and Nikon doesn’t warm up to newbies like the other companies. If I was new in the photo and video biz today, Nikon would be near last on my list of prospects. I don’t mind hiking with 28 pounds of photo gear for landscape shooting where I think my Nikon gear is perfect, I’m not so enamored with the gear for other uses. In fact, I’m looking at Panasonic and Sony as my video go-to, travel and action hardware and unless I see some movement that accommodate my styles. I hate the idea of acquiring new brands with their different batteries and lenses and menu organizations but I might accept a huge disruption to my workflow to better fit the way I like to shoot and, more importantly, to make money.

    Good luck to you. I really enjoyed this video. It was your most insightful one.

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