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.
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:
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.
@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)