Nikon reports nearly 60% jump in Q3 profit

[entropy_h]

From AP:

TOKYO - Nikon said its group net profit jumped nearly 60 per cent for the third quarter of the fiscal year ending March on brisk sales of digital cameras and imaging devices.

The maker of cameras and precision equipment posted a net profit of 23 billion yen (S$190 million) in the October-December period, up from 14.5 billion yen the same quarter a year earlier.

The jump in profits came on a 21 per cent rise in sales to 234.3 billion yen (S$2.97 billion) for the third quarter, up from 192.9 billion yen a year earlier.

The Tokyo-based Nikon said its earnings rose as its two main divisions - imaging devices and precision equipment - all posted brisk sales.

A weaker-than-expected yen against the dollar and the euro also helped its earnings, the company said.

In its digital camera business, its compact and single-lens reflex models, especially D80 and D40 models, both put on sale last year, continued to attract consumers, Nikon said.

For this fiscal year through March 31, it raised its group net profit projection to 51 billion yen from 45 billion yen in an earlier estimate and raised its group sales forecast to 800 billion yen from 797 billion yen. -- AP

 

[tchern]

Wanting to set up business on this...

 

[longkangman]

From AP:

The Tokyo-based Nikon said its earnings rose as its two main divisions - imaging devices and precision equipment - all posted brisk sales.

In its digital camera business, its compact and single-lens reflex models, especially D80 and D40 models, both put on sale last year, continued to attract consumers, Nikon said.

what about the D2Xs etc? :think: :cry:

 

[Paul_Yeo]

well done! does it mean that we'll be getting our t-shirt sooner? :embrass:

 

[CYRN]

Does it means you are paying more than you should :think: $190m in 1 qtr :sweat: :sweat:

 

[westwest1]

good...do more R&D with the extra money....

 

[entropy_h]

Does it means you are paying more than you should :think: $190m in 1 qtr :sweat: :sweat:

Not neccesarily. As stated above, due to a range of factors such as a weaker-than-expected yen against the dollar and the euro. Probably also due to an increase in the number of units sold. We also do not know the percentage of profits that was made from consumer products (i.e. digital cameras), and we also do not know the per unit profit made on each digital camera. Might have been a bigger profit from their imaging devices division.

In any case, yes, more money for R&D. Hopefully.

 

[Paul_Yeo]

good...do more R&D with the extra money....

... for full frame?

 

[entropy_h]

Updated from Thom Hogan's site, there are some facts and figures and his personal comments:

Nikon's third fiscal quarter results have been posted, and the news is continued good. Yes, stepper sales have improved, which helps the overall bottom line a lot because even small increases in unit sales volume there bring large increases to the company's overall profits.

But the Imaging Products division is the bigger part of the company now, and it too is showing improvements from what were already pretty good results. For the first three quarters of this year versus last, here are the important camera numbers (financial values are in yen):

Item 3Qs 2006 3Qs 2007 Increase
Total Sales 314.1b 343.2b 9.3%
Operating Income 29.5b 39.5b 33.9%
DSLR units 1,030,000 1,430,000 38.8%
Coolpix units 5,450,000 4,660,000 -14.5%

Short interpretation: rapid increase of DSLR sales pushed up operating income, decrease in Coolpix sales meant total sales didn't do as well.

The thing to watch in Nikon's forward numbers (estimates for year-end) is for significant changes in unit volume moving forward, as it sometimes presages new product. For example, Nikon sold 570,000 DSLRs in their 3rd quarter and now expect to sell 620,000 in the 4th. That number could be read two ways: current volume will stay about the same and another new DSLR will sneak into the end of the quarter to increase volume; or: the D40, D80, and D200 are doing so well that they'll continue to pick up some volume during this quarter. The Coolpix numbers are more revealing: 1,260,000 units in the 3rd quarter just closed but 1,840,000 units in the 4th quarter we're in? That means new Coolpix models are right around the corner.