How Nikon is really doing?

[StoneJack]

Nikon's Annual Report 2019:

In 2016, Nikon operating profit was 35 billion yen, operating margin 4.2%, return on equity (ROE, profitability) 5.5%.

In 2019, Nikon's operating profit is 82.6 billion yen *up by 67.6 billion.
Operating margin: 11.7% or up by 9.5%
return on equity (ROE) 11.2% or up by 9.4%.

Operating profit of 82.6 billion yen is HIGHEST since 2010.

R&D expenditures in the fiscal year ended March 31, 2019, totaled ¥63.9 billion, an increaseof ¥3.2 billion year on year.

It paid dividends per share in the fiscal year ended March 31, 2019, amounted to ¥60, which is increased by ¥24 from the previous fiscal year and, indeed, highest since 2010.

In incoming years with intensified investment, company targets ROE no less than 8%,12% by 2023, focuses 40% of its resources on strategic investment.

In 2020, Nikon is planning to increase its investment and establish foundations for growth. It targets areas of 3D Printers, Laser processing systems, Integrated optical processing machining solutions, 3D measurement systems in digital manufacturing,
sports imaging, robot vision, healthcare with cell culture applications, AI diagnosis.

In Imaging division (cameras) Nikon declared focus in incoming years on full frame cameras, video, completion of Z line, high mid end DSLR, swift product launches and frequent improvement cycles.

 

[9VIII]

Very good to hear that Nikon has successfully diversified.

They're much smaller than most competitors and it would be a huge loss to the industry if Nikon were to ever disappear.

Hopefully they keep pushing the industry forward like we saw with the D850.

 

[justmeMN]

In fiscal year 2019, the company as a whole had an operating profit of 82.6 billion yen. In this fiscal year, the company as a whole is forecast to have an operating profit of only 20.0 billion yen.

This fiscal year, the imaging division is forecast to have a 10.0 billion yen operating loss.


Nikon Presentation Materials, Feb 6, 2020

 

[9VIII]

In fiscal year 2019, the company as a whole had an operating profit of 82.6 billion yen. In this fiscal year, the company as a whole is forecast to have an operating profit of only 20.0 billion yen.

This fiscal year, the imaging division is forecast to have a 10.0 billion yen operating loss.


Nikon Presentation Materials, Feb 6, 2020

They did just launch a new system, it could be seen as a momentum building period.

 

[Fotoni]

Canon especially is progressing at a snail speed. Nikon is also slowing down although they introduced mirrorless full frames and a new lens mount for it. These alone are not enough, if the photos barely show differences. Nikon made improvements in video section, but they promised too much. Cutting corners raw video does not sound impressive, when you get all those line skipping artifacts with it. Nothing impressive anymore because there is also Panasonic and Sony mirrorless full frames.

Native ISO 64 for better dynamic range was the last major unique improvement from them. D850 still has the best single shot photo quality, if done right. I wish they would take it further, make the difference rather than just copying features from others and releasing them at an immature stage.

 

[justmeMN]

Fotoni wrote: Canon especially is progressing at a snail speed.

Canon announced that, this year, they are going to release seven more RF lenses and two RF lens extenders. That's a pretty aggressive schedule. Their RF lenses have received very positive reviews.

DPR called the new 1D X Mark III "the best 'hybrid' camera I've ever used".

Canon is going to release the R5 this year, apparently before the Olympics. That sounds like a very advanced camera.

It's not a big seller, but DPR gave the 32.5 MP M6 Mark II their Gold Award. They also have a 32.5MP APS-C DSLR.

 

[bmoag]

It would appear that much akin to Leica going forward the scientific instrument division will carry the more public face of the company, the camera division.

Some might be surprised that despite the lofty price of Leica cameras their medical and scientific instruments are competitively priced, at least those I've been involved with.

 

[Revenant]

There are four independent companies using the Leica brand name: Leica Camera, Leica Microsystems, Leica Biosystems and Leica Geosystems. I believe they're all successors to the old Leitz company, but are now completely separate with different owners. According to Leica Camera's website, they only make cameras, lenses and sports optics.

 

[skookum8]

In fiscal year 2019, the company as a whole had an operating profit of 82.6 billion yen. In this fiscal year, the company as a whole is forecast to have an operating profit of only 20.0 billion yen.

This fiscal year, the imaging division is forecast to have a 10.0 billion yen operating loss.


Nikon Presentation Materials, Feb 6, 2020

That's a much better representation of Nikon's performance in regards to it's camera division. Nikon's investor notes that accompany these numbers which have been discussed as nauseum here and elsewhere, essentially present a much more bleaker picture of performance and forward looking guidance.

 

[RedFox88]

Canon especially is progressing at a snail speed

Tortoise and the hare. Canon is calculated and strong, you can’t go nuts in a shrinking market!

. Nikon is also slowing down although they introduced mirrorless full frames and a new lens mount for it. These alone are not enough, if the photos barely show differences. Nikon made improvements in video section, but they promised too much.

Because they had to. Their live view was horrible while Canon had dual pixel for 6 years now.

Cutting

 

[Jon555]

There are four independent companies using the Leica brand name: Leica Camera, Leica Microsystems, Leica Biosystems and Leica Geosystems. I believe they're all successors to the old Leitz company, but are now completely separate with different owners. According to Leica Camera's website, they only make cameras, lenses and sports optics.

You forgot one... they also make money, which these days in the camera biz is both a rare and a valuable thing...

 

[justmeMN]

There are four independent companies using the Leica brand name: Leica Camera, Leica Microsystems, Leica Biosystems and Leica Geosystems. I believe they're all successors to the old Leitz company, but are now completely separate with different owners. According to Leica Camera's website, they only make cameras, lenses and sports optics.

You forgot one... they also make money, which these days in the camera biz is both a rare and a valuable thing...

Isn't Leica Camera AG a private company, that doesn't have to disclose it's financials?

 

[Revenant]

Leica does publish financial reports. I've read that German law requires all companies of a certain size to publish some basic financial information, although perhaps not as detailed as is required for a publicly traded company.