Nikon's 5 year plan...

Started Oct 23, 2013 | Discussions thread
stevo23
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Re: Nikon's 5 year plan...
In reply to rkodama1, Oct 23, 2013

rkodama1 wrote:

I don't know about the validity of that article's numbers but based on what I have seen, Nikon may have some challenges ahead of them. While their sales have increased, their 2013 Op Income took a large drop. This means that they are making less profit on greater sales. This is one of the downsides of outsourcing key, expensive components such as sensors although there many other factors impacting profitability. Also, their cash flow tightened up which is a bad indicator. If this trend continues with lower Op Margins and tightening working capital then Nikon will have less money to invest in R&D and other future expansion activities. It doesn't matter what technology Nikon has if they can't turn into profits and cash flow.

But read every other annual report from a camera maker. I've read through them all and it's gloomy everywhere. The biggest weakness here isn't the loss of sales to smartphones or lack of mirrorless etc. It's that they are more dependent on cameras than any of the other camera makers. They're so heavily leveraged in cameras that they will be hurting if they don't climb up on that wagon and start driving it like a winner.

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