May 23, 2017, 06:56:14 PM

Author Topic: Nikon Reports Extraordinary Loss, Fundamental Company-wide Restructuring  (Read 5750 times)

Canon Rumors

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Nikon’s financials have been released, and they’re not good.

Notice of Recognition of Extraordinary Loss

As announced in “Notice of Restructuring” released on November 8, 2016, Nikon Group is currently under a fundamental company-wide restructuring to improve its corporate value as shifting from a strategy pursuing revenue growth to one pursuing profit enhancement.

In accordance with this restructuring, the Group recorded extraordinary loss of 29,790 million yen, mainly incurred from inventory write-downs/write-off in Semiconductor Lithography Business, as restructuring expenses for the nine months ended December 31, 2016.

Result of Solicitation for Voluntary Retirement

For approximately 1,000 workers a special retirement benefit will be paid in addition to the normal retirement benefit. Re-employment support services will also be provided on request.

Revision of the Financial Forecast for the Fiscal Year Ending March 31, 2017

Regarding the consolidated financial forecast for the year ending March 31, 2017, despite the continuous boom in sales of FPD Lithography Systems in the Precision Equipment Business, consolidated operating income as a whole is expected to fall below the previous forecast, impacted by the sluggish and shrinking markets of digital cameras in the Imaging Products Business and industrial metrology equipments in the Instruments Business.

As announced in “Notice of Restructuring” released on November 8, 2016, Nikon Group is currently under a fundamental company-wide restructuring in order to enhance our ability to generate profits and create value. And an extraordinary loss of approximately 53 billion yen in total, including the expenses related to “Result of Solicitation for Voluntary Retirement” and “Notice of Recognition of Extraordinary Loss” released today, is expected to incur as restructuring expenses, which is 5 billion yen increase from the previous estimate of 48 billion yen in “Notice of Restructuring” released on November 8, 2016.

Here’s a good comment from Nikon Rumors from one of their readers Semaphore about what all of this means.

Before people get too worked up, “extraordinary loss” is an accounting term describing a loss that is rare, unusual, and not caused by operating activities.

For instance, Nikon previously reported a large extraordinary loss following the floods in Thailand. In this case, the losses were already expected from the restructuring announced last year, though the estimate has increased by 5 billion yen.

In other words, the losses are not caused by lack of revenue or developmental costs or such normal business operations, but rather a pre-planned shedding apparently mostly in the lithography division. So relax a little with the predictions of doom and gloom.

« Last Edit: February 13, 2017, 12:21:47 PM by Canon Rumors »
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PureClassA

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Damn!!  Maybe Canon will buy up controlling interest of Nikon on the exchanges in the hostile takeover of the century 😜😝😜
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njene

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Re: Nikon Reports Extraordinary Loss, Fundamental Company-wide Restructuring
« Reply #2 on: February 13, 2017, 09:47:20 PM »
Why invest in a sinking ship?
Just watch it go down and keep your money

Orangutan

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Re: Nikon Reports Extraordinary Loss, Fundamental Company-wide Restructuring
« Reply #3 on: February 13, 2017, 09:50:49 PM »
Why invest in a sinking ship?
Just watch it go down and keep your money

Competition: if Nikon goes down, there will be less pressure on Canon to bring out big improvements at reasonable prices.


Don Haines

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Re: Nikon Reports Extraordinary Loss, Fundamental Company-wide Restructuring
« Reply #4 on: February 13, 2017, 10:06:14 PM »
Why invest in a sinking ship?
Just watch it go down and keep your money
Not a sinking ship.... think of it spending some money to fix a leak..... an action meant to save the ship...
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neuroanatomist

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Re: Nikon Reports Extraordinary Loss, Fundamental Company-wide Restructuring
« Reply #5 on: February 13, 2017, 10:24:19 PM »
Why invest in a sinking ship?
Just watch it go down and keep your money
Competition: if Nikon goes down, there will be less pressure on Canon to bring out big improvements at reasonable prices.

Not a sinking ship.... think of it spending some money to fix a leak..... an action meant to save the ship...

Presumably, njene was responding to PureClassA's immediately preceding post suggesting that Canon buy out Nikon.  If so, your responses don't really make much sense.   ???
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Orangutan

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Re: Nikon Reports Extraordinary Loss, Fundamental Company-wide Restructuring
« Reply #6 on: February 13, 2017, 10:29:44 PM »
Why invest in a sinking ship?
Just watch it go down and keep your money
Competition: if Nikon goes down, there will be less pressure on Canon to bring out big improvements at reasonable prices.

Not a sinking ship.... think of it spending some money to fix a leak..... an action meant to save the ship...

Presumably, njene was responding to PureClassA's immediately preceding post suggesting that Canon buy out Nikon.  If so, your responses don't really make much sense.   ???
Ah, I see.  If Canon buys-out Nikon it will still diminish competition. :'(

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Re: Nikon Reports Extraordinary Loss, Fundamental Company-wide Restructuring
« Reply #6 on: February 13, 2017, 10:29:44 PM »

IglooEater

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Re: Nikon Reports Extraordinary Loss, Fundamental Company-wide Restructuring
« Reply #7 on: February 14, 2017, 12:16:41 PM »
I think it's unfortunate.  I'm a Canon guy, but that doesn't give me ill will towards Nikon.  Canon needs strong, healthy competition, and Nikon is the one providing most of that.

Frodo

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Re: Nikon Reports Extraordinary Loss, Fundamental Company-wide Restructuring
« Reply #8 on: February 14, 2017, 08:05:11 PM »
I think it's unfortunate.  I'm a Canon guy, but that doesn't give me ill will towards Nikon.  Canon needs strong, healthy competition, and Nikon is the one providing most of that.

Absolutely.  I currently own a Nikon binocular and telescope and previously owned a 601 and two zoom lenses.
We, as consumers, need Nikon to keep Canon on their toes.
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Don Haines

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Re: Nikon Reports Extraordinary Loss, Fundamental Company-wide Restructuring
« Reply #9 on: February 14, 2017, 08:13:07 PM »
Why invest in a sinking ship?
Just watch it go down and keep your money
Competition: if Nikon goes down, there will be less pressure on Canon to bring out big improvements at reasonable prices.

Not a sinking ship.... think of it spending some money to fix a leak..... an action meant to save the ship...

Presumably, njene was responding to PureClassA's immediately preceding post suggesting that Canon buy out Nikon.  If so, your responses don't really make much sense.   ???
I was NOT referring to Canon buying out Nikon..... that is not going to happen....

I was referring to Nikon's actions (severance and retirement incentives to 1000 people) as spending money now, in order to save money in the long run. Pruning off an unprofitable limb might be a dramatic action, but the willingness to look at long term profitability makes it more likely that Nikon will be around in the long term. There is no reason for people to panic at the impending demise of Nikon (YAPOD) because they don't understand what "extraordinary expenses" are.......
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In-The-Dark

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Re: Nikon Reports Extraordinary Loss, Fundamental Company-wide Restructuring
« Reply #10 on: February 14, 2017, 10:59:39 PM »
Canon needs strong, healthy competition, and Nikon is the one providing most of that.

+1
We, as consumers, will benefit from that. Better value for our hard-earned money.

KeithBreazeal

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Re: Nikon Reports Extraordinary Loss, Fundamental Company-wide Restructuring
« Reply #11 on: February 15, 2017, 12:38:14 AM »
I have many friends that are Nikon shooters and hope Nikon keeps the course.  Plus, it will keep this forum from having only Sony left to bash and vice versa.  Innovation promotes innovation.
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Stewart K

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Re: Nikon Reports Extraordinary Loss, Fundamental Company-wide Restructuring
« Reply #12 on: February 15, 2017, 03:59:37 AM »
I think it's unfortunate.  I'm a Canon guy, but that doesn't give me ill will towards Nikon.  Canon needs strong, healthy competition, and Nikon is the one providing most of that.

Absolutely.  I currently own a Nikon binocular and telescope and previously owned a 601 and two zoom lenses.
We, as consumers, need Nikon to keep Canon on their toes.

Me too, I have Monarch 5 8x42 and Aculon 10x50 bins, and a Prostaff 5 60x80 spotting scope, Canon don't have these type of products or I would have probably bought them if the price was comparable, I would have only done so due to brand familiarity, nothing else!
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Re: Nikon Reports Extraordinary Loss, Fundamental Company-wide Restructuring
« Reply #12 on: February 15, 2017, 03:59:37 AM »

TAW

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Re: Nikon Reports Extraordinary Loss, Fundamental Company-wide Restructuring
« Reply #13 on: February 15, 2017, 07:32:52 AM »
Why invest in a sinking ship?
Just watch it go down and keep your money
Competition: if Nikon goes down, there will be less pressure on Canon to bring out big improvements at reasonable prices.

Not a sinking ship.... think of it spending some money to fix a leak..... an action meant to save the ship...

Presumably, njene was responding to PureClassA's immediately preceding post suggesting that Canon buy out Nikon.  If so, your responses don't really make much sense.   ???
I was NOT referring to Canon buying out Nikon..... that is not going to happen....

I was referring to Nikon's actions (severance and retirement incentives to 1000 people) as spending money now, in order to save money in the long run. Pruning off an unprofitable limb might be a dramatic action, but the willingness to look at long term profitability makes it more likely that Nikon will be around in the long term. There is no reason for people to panic at the impending demise of Nikon (YAPOD) because they don't understand what "extraordinary expenses" are.......

+1
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neuroanatomist

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Re: Nikon Reports Extraordinary Loss, Fundamental Company-wide Restructuring
« Reply #14 on: February 15, 2017, 08:09:59 AM »
I was NOT referring to Canon buying out Nikon..... that is not going to happen....

Very unlikely, unless the Mitsubishi Group divests them.
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Re: Nikon Reports Extraordinary Loss, Fundamental Company-wide Restructuring
« Reply #14 on: February 15, 2017, 08:09:59 AM »