Nikon has released their annual report and a look at the numbers indicates a positive outlook for the historic company. In late 2016, Nikon released a “Notice of Restructuring” with a goal of “profit enhancement.” A year and a half later and their efforts seem to have been rewarded with a significant increase in profit stemming from their efforts.
As a result of the aforementioned measures, although revenue for the fiscal year ended March 31, 2018 decreased by 32,196 million yen (4.3%) year on year to 717,078 million yen, the decline of restructuring costs led to increases in: operating profit by 55,463 million yen year on year to 56,236 million yen, profit before income taxes by 53,190 million yen year on year to 56,257 million yen, and profit attributable to owners of the parent by 30,805 million yen (776.6%) year on year to 34,772 million yen.
Rounding up, 30,805 million yen is $278 million US Dollars.
Nikon’s new vision includes a lineup consisting of fewer cameras overall and focusing on premium offerings. Thus, there was, and continues to be a heavy burden riding on the success of the D850, as even during the company’s centennial celebration they didn’t produce anything new as much as a cosmetic makeover. However, the D850 has been well-received and with its performance cited as “strong” having “boosted the sales of high-class cameras significantly.”
The canceled DL series was merely another symptom of the shift in markets’ demand for compact digital cameras as the COOLPIX W300 performed poorly as “unit sales fell significantly.”
This is a promising report just 18 months after the shocking series of announcements raised questions as to how competitive the company could remain moving ahead. However, even though they are now better positioned financially, the road ahead promises to be arduous.
As for the business segments of the Group, in the Imaging Products Business, conditions are expected to remain harsh for the digital camera-interchangeable lens type market and compact digital camera market.
But with that acknowledgment, it’s good to know the company seems to know the changes it has to make, and says it’s willing to make them. It is safe to say that fiscal 2019 is going to be a vitally important year as the company has looks to enter the mirrorless market. Should it falter seriously, we could be hearing of more drastic changes from Nikon.
You can find the full report here.