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

Started Oct 29, 2013 | Discussions thread
YouDidntDidYou Senior Member • Posts: 1,576
Re: imaging division result is less rosy

Abrak wrote:

YouDidntDidYou wrote:

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...

Oh I see you have been looking at Olympus's slide presentations which are perhaps the greatest piece of fiction since the 'Great Gatsby'.


Progress of restructuring the imaging business


1) Reduced inventories by more than planned through strengthened monitoring (cut inventories of older products by 75%)

2) Reduced compact camera inventory by 40% from March 2013, on a unit basis

Now the reality....

Sales down 15%

Digital camera inventories up 4%

And nothing is going in the right direction. Mirrorless sales are down, compact sales have continued to collapse, the cost overhead is totally out of control. Olympus will lose another US$100m this year in imaging.

The only reason that losses are down in the 1st half is because Olympus took around an US$80m write down of inventory of older products in 4Q 2013. Hence they have reduced inventories of older products (at a profit) while total inventories have risen in the first half.

You have to taken into account the quality of the inventory as any good auditor will tell you and any good accountant will tell you have to take into account the rate of turn of the inventory...

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