PIX 2015

Olympus Financials (Recent)

Started May 11, 2014 | Discussions thread
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Re: Olympus Financials (Recent)
In reply to justmeMN, May 12, 2014

justmeMN wrote:

Olympus recently reported (presentation materials) "lower-than-expected sales of digital SLR (mirrorless) cameras" and forecast that their Imaging Business will still have an operating loss in fiscal year 2015.


Here is Thom Hogan's analysis:



It's a good thing that Olympus has patient shareholders.

Olympus' decisions are beholden as much to the will of its creditors (large Japanese banks dominating) as to the shareholders. It is a leveraged firm and does not have a thick equity cushion. It cannot use earnings from medical devices to cover losses from cameras indefinitely

I haven't read of anyone demanding that they dump their imaging division.

It sure isn't because they give a hoot about cameras.  The claim of "synergies" is also lame.

Real reasons:

  1. Some were willing to give management two years to cut P&S operations and see whether the surviving PEN, OMD, and Tough products might be profitable on their own.
  2. Easier to sell an operation that has turned the corner, rather than one that is bleeding badly.
  3. No buyers.  Who wants to buy a company that makes something that has gone out of fashion?  Established camera companies have trouble enough selling their own wares.  Vulture capitalists, on the other hand, would have a hard time coming up with turning a profit on something that, even if offered for free, would still cost a fortune to keep in operation.
  4. Labor costs.  Redundancy payments due severed workers would make an outright shutdown prohibitively expensive.  Better to encourage employees to leave by cheaper means: zero raises, impossible performance quotas, or make everyone report to exceptionally difficult individuals.
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