Olympus profit - the cat is out of the bag (a little early)

Started 10 months ago | Discussions thread
YouDidntDidYou
Senior MemberPosts: 1,576
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Re: imaging division result is less rosy
In reply to Abrak, 9 months ago

Abrak wrote:

YouDidntDidYou wrote:

You can still make and increase profits when volumes drop (one of the businesses I run is in this position), the main thing you have to do is reduce your fixed costs and make your marketing more cost effective which I believe Olympus are doing...

Have you not even looked at Olympus's numbers? I mean EVER.

1) The fact is that Olympus's imaging sales have fallen every year since 2008. The fact is that Olympus has never in any one of those 5 years or in the first half of this year, succeeded in reducing its SG&A expenses as fast as sales have fallen.

2) Currently their SG&A expenses are 53% of imaging sales - higher than any other product manufacturer that I know of on this planet. If Apple had the same SGA/sales ratio as Olympus imaging, it would make losses.

3) Pretty unbelievably, there is a totally separate line item for 'corporate overheads' that amounts to US$300m a year. If you apportioned a fair percentage of the corporate over head to the imaging division it would quite staggeringly have even higher SGA expenses and make even greater losses than it reports.

Yes I looked at the most recent presentation slide on the Olympus global site and it all seems to be moving in the right direction considering the market conditions etc

Whsmiths sales have fallen every for the last 10+ years yet they managed to increase profits every year...

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