# Nikon Reports Extraordinary Loss, Fundamental Company-wide Restructuring



## Canon Rumors Guy (Feb 13, 2017)

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Nikon’s <a href="http://nikonrumors.com/2017/02/13/nikon-reports-extraordinary-loss-fundamental-company-wide-restructuring.aspx/">financials have been released</a>, and they’re not good.</p>
<p><a href="http://www.nikon.com/news/2017/20170213_1_e.pdf" target="_blank">Notice of Recognition of Extraordinary Loss</a></p>
<blockquote><p>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.</p>
<p>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.</p></blockquote>
<p><!--more--></p>
<p><a href="http://www.nikon.com/news/2017/20170213_2_e.pdf" target="_blank">Result of Solicitation for Voluntary Retirement</a></p>
<blockquote><p>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.</p></blockquote>
<p><a href="http://www.nikon.com/about/ir/ir_library/result/pdf/2017/20170213_e.pdf" target="_blank">Revision of the Financial Forecast for the Fiscal Year Ending March 31, 2017</a></p>
<blockquote><p>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.</p>
<p>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.</p></blockquote>
<p><strong>Here’s a <a href="http://nikonrumors.com/2017/02/13/nikon-reports-extraordinary-loss-fundamental-company-wide-restructuring.aspx/">good comment from Nikon Rumors</a> from one of their readers <em><a href="https://disqus.com/by/disqus_2GUvzmzZdq/" data-action="profile" data-username="disqus_2GUvzmzZdq" data-role="username">Semaphore</a></em> about what all of this means.</strong></p>
<blockquote><p>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.</p>
<p>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.</p>
<p>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.</p></blockquote>
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## PureClassA (Feb 13, 2017)

*Re: Nikon Reports “Extraordinary Loss”, “Fundamental Company-wide Restructuring”*

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 (Feb 14, 2017)

Why invest in a sinking ship?
Just watch it go down and keep your money


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## Orangutan (Feb 14, 2017)

njene said:


> 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.


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## Don Haines (Feb 14, 2017)

njene said:


> 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 (Feb 14, 2017)

Orangutan said:


> njene said:
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Don Haines said:


> 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 (Feb 14, 2017)

neuroanatomist said:


> Orangutan said:
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Ah, I see. If Canon buys-out Nikon it will still diminish competition. :'(


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## IglooEater (Feb 14, 2017)

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.


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## Frodo (Feb 15, 2017)

IglooEater said:


> 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 (Feb 15, 2017)

neuroanatomist said:


> Orangutan said:
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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 (Feb 15, 2017)

IglooEater said:


> 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.


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## KeithBreazeal (Feb 15, 2017)

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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## TheJock (Feb 15, 2017)

Frodo said:


> IglooEater said:
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> > 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.
> ...



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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## TAW (Feb 15, 2017)

Don Haines said:


> neuroanatomist said:
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+1


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## neuroanatomist (Feb 15, 2017)

Don Haines said:


> 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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## ExodistPhotography (Feb 16, 2017)

So many youtube channels have been blowing this up.. Its not a huge deal. This just happens when the market shifts and production cost change without notice. 

As far as the DL line. Its clearly stated that it was dropped not becuase of market demand, but simply not going to make enough profit to manufacture the items and still sell them. They are better off just stopping while they are ahead..


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## AvTvM (Feb 16, 2017)

neuroanatomist said:


> Don Haines said:
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> > I was NOT referring to Canon buying out Nikon..... that is not going to happen....
> ...



To me it would make a lot of sense if Nikon imaging business was sold ASAP ... not to Canon, but to Sony! 

Despite different Keiretsus [Nikon is MUFG / Sony is SMFG -> https://en.wikipedia.org/wiki/Keiretsu] it would make a lot of sense from a business perspective. Canon would gain very little from a Nikon buyout, but likely run into major anti-cartel issues in EU(rope) and the US, due to "dominating market share". Sony however, would profit massively from Nikon optical know-how, engineering and manufacturing expertise and resources. Sony could continue to sell DSLRs and F-mount glass under "Nikon" brand [as long as mirrorslappers still find sufficient buyers] and all mirrorless products under "Sony" brand. In one swift move Sony would become a really strong #2 in the imaging market with excellent potential to de-throne Canon and make it to the top. 

Will be interesting to see, how things will unfold. Nikon in its current form definitely is in jeopardy.


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## FramerMCB (Feb 16, 2017)

Orangutan said:


> neuroanatomist said:
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But what if... Sony were to buy-out or buy a controlling interest in Nikon? Like they bought up Minolta. 
[/quote]


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## ritholtz (Feb 16, 2017)

FramerMCB said:


> Orangutan said:
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If Sony buys Nikon, they will slowly kill F mount and try to switch them to E mount like they did with A mount. By buying Nikon, Sony inadvertently ends up killing EF mount biggest competitor.


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## IglooEater (Feb 18, 2017)

ritholtz said:


> FramerMCB said:
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If Sony buys Nikon, they will slowly kill F mount and try to switch them to E mount like they did with A mount. By buying Nikon, Sony inadvertently ends up killing EF mount biggest competitor. 
[/quote]

I doubt anyone in there right mind would kill F mount. More likely they'd maintain both mounts and just cross-breed sensor and optical expertise with Nikon.


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