Nikon continues to lose money in Imaging Products business

Nikon Corp. recorded ¥591B in revenue and ¥6.7B in operating profit for its 2020 fiscal year (FY2020), ending March 31, 2020; this is a decrease of ¥117.6B and ¥75.9B, respectively, year-over-year.

Specifically, Nikon quantifies the impact of the COVID-19 pandemic, with its report saying it believes the pandemic has caused 10 billion yen in operating profit losses. Specifically, Nikon attributes ‘approximately 4 billion yen’ of that loss to its Imaging Products division: “Due to product mix change by [the] suspension of distributors mainly selling mid- and high-end cameras, and delay of launch in main products including professional use products by stagnation of the supply chain.”

Nikon recorded ¥225.8B in revenue and a ¥17.1B operating loss in the Imaging Product Business, a decrease of ¥70.3B and ¥39.1B, respectively. The documents reveal Nikon sold 1.62 million interchangeable lens cameras and 2.65 million interchangeable lenses, along with just 840,000 compact digital cameras. These unit numbers represent a decrease of 21.4%, 16.4% and 47.5%, respectively, over last year.

In notes on the revenue of its Imaging Products Business, Nikon says revenues were “mostly in line with previous forecasts until the middle of February,” when COVID-19 impacted the supply chain, retailers and consumer demand. Nikon observes sales of its Z-series mirrorless cameras and Z-series lenses have increased, and that the volume/sales ratio of mid-range and high-end cameras improved from last year.

Nikon has trimmed 700 jobs in Southeast Asia, including Thailand losing 500 positions and Laos losing another 200, according to Nikkei Asian Review.

See more at Nikon’s investor relations website.