Mirrorless Takes Another Hammering

Started May 17, 2013 | Discussions thread
Abrak
Senior MemberPosts: 1,326
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Re: Mirrorless Takes Another Hammering
In reply to ed2002, May 17, 2013

ed2002 wrote:

Olympus plans on selling 300,000 interchangeable lens cameras this year, and was profitable this quarter.

Olympus might have been profitable overall last quarter but the imaging division made a 'record loss'. In fact it lost more in 4Q than in the previous 3Qs combined. On sales of 19.9bn yen, the imaging division made a pretty staggering loss of 14.3bn yen.

Just some other facts and figures from the results...

Sales of compacts were 57bn yen against a forecast (made this time last year) of 91bn. Sales of compacts have fallen from 120bn Yen over the last 3 years. Olympus is 'substantially reducing' the number of compact camera models it is producing and will cease production of lower priced models. For the current year they expect compact camera sales to fall from 57bn to 40bn yen. ....Sounds vaguely realistic.....

Perhaps more worrying is 'mirrorless'. Olympus achieved sales of 38bn yen well below their forecast of 43bn yen made at the beginning of the year. Given what must have been a very successful OMD launch that's not too impressive.

Olympus expects 'strong growth' in mirrorless 'in conjunction with market trends'. (yeah right!) They are forecasting mirrorless sales to increase from 38bn yen to 50bn yen (ho, ho, ho).

They are also forecasting their gross margin for the imaging business to increase from 33% to 44% (I am not making this up) and SG&A expenses to fall 20% from 56bn yen to 44bn yen.  The combined effect of these (massively heroic) assumptions is a forecast to move from losses of 23.3bn yen to breakeven.

The problem Olympus faces is that last year it made a loss equivalent to 20% of sales! And the only way you can get back to breakeven from there is by making hopeless optimistic forecasts for sales, gross margin and your ability to cut expenses.

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