Nikon Corp. reported its first-half net profit plunged 77.2 percent to 7.51 billion yen from 32.92 billion yen last year. Operating profit for the period declined 42.9 percent to 17.50 billion yen from last year’s 30.64 billion yen. Revenue declined 13.3 percent to 291.05 billion yen from 335.75 billion yen a year ago.
Looking ahead, for the fiscal year ending March 31, 2020, Nikon now expects a net profit of 17 billion yen, operating profit of 20 billion yen, and revenues of 620 billion yen. The previous outlook was a net profit of 42 billion yen, operating profit of 52 billion yen, and revenues of 670 billion yen.
In the key Imaging Products Business, the company said it would accelerate efforts to restructure, as this unit underperformed in the first half. The company declared:
Business environment has deteriorated further as market shrinkage accelerates and competition intensifies. Increased costs from Z-mount system lineup expansion also a burden.Fundamentally rectify structure and strategy, and address challenges appropriately to halt profit erosion.
The company stated it over-estimated demand for its mirrorless cameras, especially as the overall market deteriorates, and was hampered by “slow execution on drawn-out decision making.” Nikon expects the competitive pressures to intensify.