The world wide financial crisis has hit Nikon. The latest data for the fiscal third quarter ended December 31, 2008 showed a projected 2.7% decline in imaging product revenue for the whole fiscal year (April 1, 2008 – March 31, 2009) compared to the previous fiscal year. The total estimated DSLR shipments still shows a projected growth, but there is a -5.7% adjustment from their November 6, 2008 estimate. The third quarter net income is only about 66% of the previous year’s. Based on the whole year estimate, Nikon is predicting a 4th quarter loss of 11 billions Yen for its imaging product division with total fiscal year net income decline by 58%.
It is ugly.
British Journal of Photography reported that Nikon has cut 800 temporary jobs but no specifications on where the cuts are.
Nikon does not expect a quick economy recovery and calm-down of Yen’s appreciation, and has promised to “propose new products and services exceeding the expectation of our customers”. Specifically for the imaging division, Nikon will:
- Establishment of business structure overcoming further appreciation of Yen.
- Development of next generation digital cameras and proposal of the new services.
Further reading: Nikon Financial Results