PetaPixel

Nikon Stock Hits Three Year Low, Prompts Company to Restructure

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Last week, Nikon released its financial results for the last fiscal year (ending in March) and things aren’t looking good. The company missed financial forecasts yet again, closing at a three-year low that, it seems, has prompted Nikon to do some serious restructuring within the company.

If you’re not into the numbers of it all, all you really have to do is glance at the chart below. It keeps dropping… relentlessly… not good. But if you need some numbers to associate with Nikon’s financial decline, Bloomberg is more than happy to provide them:

Nikon sank 4 percent to 1,567 yen, its lowest close since March 2011. The company announced net income of 46.8 billion yen for last fiscal year, missing its own forecast of 50 billion yen. Nikon projected profit of 45 billion yen for the current year, while analysts estimated 48.5 billion yen.

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These numbers have led to some corporate changes at Nikon, all of which were announced via press release on Friday. New Directors, Officers and Auditors have been appointed while some current Directors and Officers have had their appointments changed.

Plus, the entire company will be experiencing, “a reorganization of its corporate structure to build a foundation designed to support sustainable growth and establish a more robust corporate culture.” It will do this, “by further solidifying its core businesses of imaging and precision equipment while enhancing its instruments and medical businesses.”

On the bright side, it doesn’t look like Nikon is standing still while sales continue to suffer. On the other hand, what has the company been doing the last three years? And why hasn’t it worked? Let us know what you think in the comments down below.

(via Nikon Rumors)


Image credits: Photo illustration based on Nikon Headquarters by Peter Dutton


 
  • jwinford

    Camera. Phones.

  • http://www.yousifsadik.com/ Yousif Sadik

    Their marketing of DSLR isn’t very good as compared to Canon. You cannot blame camerphones for this as Canon is booming. This is mainly due to the lack of of easy to understand GUI for the entry level audience.

  • Richard

    If that were the case, then Canon corp would be suffering the same results.

  • sean lancaster

    The D600 debacle certainly didn’t help this past year.

  • Redstart

    Fuji, Olympus, and Sony.

  • Henry Wang

    no way…

  • Brian Todd

    They are

  • Chase Chick

    While we’re making a wish list, I’d like to see a D610 equivalent with 1080p60 recording power. Slap 4k or even higher frame rates and I’m all in!

  • http://www.yousifsadik.com/ Yousif Sadik

    No they are not, show me where you heard that they are…

  • Keith D

    Canon probably wouldn’t be showing the same results anyway as their camera division isn’t even their most profitable.

  • Jonathan Maniago

    It should be noted though that Canon manufactures other equipment such as photocopiers and printers. Their total revenue is still affected by the trend of camera phones, but probably not to the same extent as Nikon because of this.

  • Brian Todd

    There are many articles on this subject. I’m not going to post them all. But the article I just posted shows a 28% decline in sales volume for Canon for compact cameras and 7% decline in ILC cameras for 2013. This is the first drop in ILCs for Canon since the EOS came out 11 years ago. There was another article from Petapixel listing a 10-15% decline in DSLRs for all manufacturers. Canon is falling, just not quite as fast. But more importantly, camera sales only represent 26% of Canon’s income, compared to 76% for Nikon. Nikon just feels the decline more than Canon, because they are more heavily invested in cameras on a proportionate basis. Compact cameras are dying to smart phone cameras. They ultimately became a fad. Camera manufacturers are going to have to keep reinventing themselves in the ILC market and larger sensor cameras to compete.

  • Redstart

    Every camera you see on the street with a kit lens is a Canon. Nikon is wasting it’s time with anything underneath the D600. They made crappy P&S cameras even before the iPhone became the best pocket camera. Canon’s P&S dominance is just shifting into the entry level market as the necessity of a decent P&S becomes less and less.

  • Henry Wang

    Sony’s becoming more substantial with their a7’s and compacts, maybe Olympus has a chance if the OM-D’s continue their success, but this doesn’t mean that Canon or even Nikon will even get a dent in their marketing. Canon is making the right moves, as the entry level market is their most profitable, which keeps them on top.

  • Henry Wang

    I predict that a more clear separation will develop between Canon and Nikon in the future years.

  • Rob S

    “They made crappy P&S cameras” – Wait what? I had two Nikon P&S along with a Minolta and two Panny. My wife had two Canons and a Kodak. The Nikons were BY FAR the best of all of them. Nikon made some excellent P&S cameras.

  • OtterMatt

    Um, Nikon’s GUI is pretty damn easy to understand, and if you turn it off of the classic mode, it goes down to a kindergarten comprehension level. The problem is that cameras are all Nikon does and Canon does so much more.

  • RobertB

    All I know is that when I entered the full-time pro arena in 2000 with the D-1, when Nikon release the D2H and kept trying to convince people it was not a piece of crap, the corporate arrogance moved me to Canon. The last couple of years I have wanted to move back to Nikon but when you initially invest $50K in camera equipment with one manufacturer you are reluctant to go back. Canon is not perfect but it seems they try to design stuff for what their customers are asking for versus jamming it down their throats.

  • LisaOsta

    Excellent mirrorless camera systems from Sony, Fujifilm, Olympus, Panasonic and Samsung vs. crappy mirrorless and unexciting P&S’s from both Nikon and Canon.

  • Tim Brown

    Interesting. I am sitting here at work in a semiconductor fab and there are photo-lithography and overlay correction tools with Nikon logos on them less than 100 feet away from me.

  • Tooki

    Where do you live? I think this varies a lot by region. I live in Japan and, while Canon is probably marginally more common than Nikon, Olympus seems to have the largest portion of the market (at least where interchangeable lens cameras are concerned). I also see more Nikon bridge cameras than any other brand.

  • Redstart

    America; The land of ignorant internet commenters.

  • JustFedUp86

    The D600 problems didn’t help; but honestly it’s not like there’s an endless river of oil being sprayed on the sensor; I’m looking to pick one up when the price drops enough.

    No real D700 replacement; I want low light high ISO performance and fast frames per second; The D800 just offers huge image sizes and corresponding file sizes to compare.

    The Df is too expensive; although I’d love to get one.

    No real good point and shoot; my DSLR’s are Nikons but my pocket camera has been Canons or Sonys.

    A mirrorless system that isn’t as well thought out or as useful as the competing systems from Olympus. It’s really a an expensive and underperforming SLR system minus the mirror.

    That said, have you heard of the cool underwater mirrorless they did make? Neither has anyone else apparently.

    Video camera or Still camera? Things are getting schizophrenic.

    And lastly, smartphones. They’re killing everything; to be honest I’m amazed they can take as good as photos as they do, but when you see hazy, dark, or smudged photos being presented as art and people scoffing at why “would you evah buy a DSLR?” it’s hard to compete with that mentality.

  • JustFedUp86

    Ahh….the D2H and the “ERR” sticking shutter. And poor ISO performance above 400. And a white balance that was five years behind the times.

  • Kristopher Doucet

    the d600 seriously damaged the companys reputation. also failure to produce lenses at comptetitive prices and keeping them sky high and out of reach for most photographers. 3rd party lens ,manufaturers are manufacturing either superior or at best equaling the performance of many of Nikons lenses at a fraction of the price. This is good for consumers of course and hopefully Nikon and Canon will start to compete appropriately.

  • http://www.majid.info/ Fazal Majid

    Not compared to the Sony RX100. The Coolpix line is incredibly lame, with nasty tiny sensors, the sole exception being the Coolpix A, which was trumped at launch by the Ricoh GR.

  • Kristopher Doucet

    you sound like a fanboi you knw that right?

  • http://geoffcbassett.com Geoff C. Bassett

    Quite frankly, I’m a Nikon shooter and I am dumbfounded by the idiocy and incompetence of Nikon. Every other company is innovating to survive except Nikon. Right now Nikon needs to move camera’s, not stick to their current minor upgrade pattern. 1) Take a smaller profit margin for this cycle of cameras, undercut to gain market share back. 2) GPS and Wifi in EVERY camera, with the ability to turn them off to save battery. Seriously, I don’t need this feature, but you need these features for todays online society. 3) A suitable sports camera with a good buffer for under 4 grand. 4) For god sakes guys, you don’t have a cinema division like Canon, consult filmmakers and put in as many video features as you possibly can in the D800 successor. Video people are a HUGE market that you seem clueless about. 5) Finally if you really want to shake things up, switch to in-body image stabilization with updated smaller size versions of your high end glass. That would shake up the entire industry.

  • Mike Kajiji

    I work in a small retail electronics store that sells, cameras, computers, TVs, DVD players, and mobile phones. This is by no means scientific, but over that last year I’ve seen our camera sales plummet. Most people don’t by P&S cameras – opting for the high quality cameras on their phones…I don’t think we’ve sold a camera for months. Smartphones on the other hand – we probably sell one every day or two.

  • http://www.jamiejohansen.ca/ jj

    Investing far too much in the J series, thinking it would take off and do crazy well. Also putting out point and shoots/compacts with minimal improvements and features each and every year that failed to sell or compare to others on the market. The D600 was a nightmare.

  • Cathy

    I chose Nikon for their D300 and Nikkor F4 200-400VR. I still have the same gear…nothing astounding since then, imo. Give me a body I like more than the D300 for my telephoto, for that’s what they excelled at when I made the choice.

  • Tâm Ngầu

    upper management level problem, selling overpriced products, unnecessary product lines, personally I feel like they don’t get what people want and didn’t match up customers expectations, very disappointed about the nikon df released recently

  • Mistah Vega

    Canon has other business units to prop up their camera business. Other camera companies are way more innovative then these 2 old slugs!

  • http://Raylarose.com/ Raymond Larose

    I bailed on Nikon after there was no decent upgrade for the D700. I really hoped the D800 would be the tool of choice, but it just didn’t compare to the dollar for dollar bang of the D700. Canon didn’t wow me, so I went rangefinder. Obviously not a move for everyone, but NIkon annoyed me for the last time.

  • Kim R Leonard

    as Amber explained
    I am dazzled that any body able to profit $4621 in 1 month on the computer .
    you could try here Works77­.­C­O­­M

  • RobertB

    so you remember the white balance….OMG

  • Chris Van Zyl

    Poor service by the South African Distribution agents also does not help!! The NPS Program a dismal failure!

  • BlytheSprit59

    There is much they can do to improve the D800, which is certainly not the easiest camera to focus, manually or otherwise. A painless improvement to video on the D800 would be to allow Magic Lantern compatibility. They have to start listening to their loyal customers and share their thinking with us.

  • http://www.audiomind.us/blog AUDIOMIND

    Overpricing has finally caught up.

  • Muc Cica

    I bought my first analog Nikon in 1984 and my first digital Nikon in 2004. While I was absolutely happy with my Nikons in the film days, I was nothing but unhappy with my digital Nikons. Why? I felt screwed every time I made another purchase. There was always some thing or other missing, disabled functions, ignoring real needs, arogant pricing, forcing decisions on me I really did not want to make. In short, over the years, I developed a deep feeling that Nikon are having me for a fool. On a side note: you should see the people who pose as Nikon service centers outside the U.S.A.! I put up with all that for so long because I was too set in the Nikon ways to contemplate a change. But Nikon losing it completely in the last three years pushed me over the limit. Closing their eyes to what customers want and persisiting instead in forcing on the customers what Nikon would have them buy is no business policy any more, it is straight BS. I got sick of Nikon and finally got rid of all my Nikon gear and jumped ship. What happens to Nikon next, will by all means be absolutely deserved.

  • Snazzy

    One Word: Plastic

  • Gery

    Yep, you nail it spot on. Nikon did not read the market. P&S is history. Hell, even prosumers are heading to extinction. P&S? Sub 200$ smartphones take good pictures already, good enough that you are wasting ur money if you buy P&S. Prosumers? Add 100$, buy a NEX or last generation’s 4/3s.
    Nikon is not innovating in where their real strength lies (DSLR), fishing in a fishless pond with their 1″ system, thinks that their only competitor is Canon. Hell, Canon produced SL1 and EOS M, what did they do?

  • Darren Whitley

    Nikon really appears to be disinterested in DSLR video. The crippled adjustment of the iris during capture is completely stupid!

    While the D7100 is a good camera, it’s handicapped by a horrible buffer.

    Nikon has completely ignored updating rock-solid performing cameras like the D300 and D700. The D300 had terrible noise and noise reduction by comparison newer cameras. And D700, which was a better camera than the Canon 5D Mark II, never got a video update to completely dominate that price point.

    The lack of RF/RT being added to their incredible speed light and CLS system is also a problem.

    And for professional cameras, the addition of the XQD memory card format was a Sony-like (memory sticks) decision. It makes the camera far too proprietary.

  • Darren Whitley

    good points about cost comparison for sure.

  • Darren Whitley

    Wi-Fi is the da bomb! A good software package would be nice as well. The Canon desktop software is garbage when compared to the iPad app ShutterSnitch.

  • OtterMatt

    As is mentioned above in a comment, prosumer and consumer-level cameras account for almost 80% of Nikon’s revenue intake. As far as economics go, everything else might as well not matter. Canon’s camera division only makes up a quarter of the company, since they have a cinema division that covers more than their photography base. Any dent in the intake just kills Nikon. They can’t shrug off a downturn like other manufacturers can.

  • Ed Velez

    I am surprised no one mentioned the DF. I am not a Nikon person but 2 of my friends are and tried the DF and gently put it back in the box and sent it back, held their noses and went EWWWWWWWWW! Not sure what that means but it cant be good.