The Japanese Company who recently reported a slump in both profits and sales is under siege on several fronts with the Company now looking to the medical imaging market for growth over digital cameras.
As at the end of March 31, 2015 Nikon Q3 sales had fallen 8% quarter profits have also fallen with the Japanese Company set to make further financial announcements on May 14th.
Sales volume forecast for Q4 have been reduced for digital cameras and interchangeable lenses as the Company struggles to grow their camera business.
Last month Nikon acquired Scottish retinal imaging company Optos for $550M, the Company makes medical imaging products.
The company has missed several financial forecasts during the past 18 months with their share value slumping this week to a three-year low. Analysts claim that “it seems the falls in sales have prompted Nikon to do some serious restructuring within the company”.
Nikonshares sank 4 percent to 1,567 yen, its lowest close since March 2011. The company recently 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.
These numbers have led to some corporate changes at Nikon, all of which were announced via a press release on Friday that was not released in Australia.
The press release indicated that Nikon was set to “experience a reorganization of its corporate structure to build a foundation designed to support sustainable growth and establish a more robust corporate culture.”
Nikon executives claimed that they will do this “by further solidifying its core businesses of imaging and precision equipment while enhancing its instruments and medical businesses.
Around the world demand for Nikon products have slumped especially in markets such as Europe and China, Nikon executives have not returned calls regarding the Australian market.
In China Nikon is facing some serious issues after Chinese state-run television ran a major report that the Nikon D600 digital camera was defective and that it caused “black spots” on photographs.
The camera maker will service its D600 digital cameras even after warranties expire, spokesman Ryota Satake said after
China Central Television (CCTV) showed hidden-camera footage of customers demanding refunds and exchanges, Nikon staff blamed dust and smog for the spots.
Shortly after the segment appeared Nikon said that they would honour warranty claims even after a warranty period had expired.
Nikon were targeted by an insight team on the World Consumer Rights Day program which is an annual program that has previously targeted such companies as Apple and Volkswagen.
Shortly after the segment on Nikon went to air Shares in Nikon fell.
Recently Japanese newspaper The Nikkei newspaper reported that U.S. customers had raised a class-action lawsuit against Nikon claiming D600 defects. Satake said the manufacturer is aware of the D600 camera issue and “aims to offer the same standard service for customers all over the world.”
The company posted a statement Feb. 26 saying it will provide free service for the D600 after warranties run out, including cleaning and a free exchange of parts. The Chinese broadcast highlighted the statement as insufficient to address a recurring defect in the camera.
Nikon PR Company Zing who describe themselves as the “Nikon Press Office” have issued several product press releases but no press releases relating to the problems associated with the D 600.
Calls to the Nikon press Office today were answered by a consultant who said she was new, know nothing about the D600 problems and it appeared very little else about Nikon.
Last year’s CCTV accused Apple of offering Chinese consumers warranties that were not comparable to those available in other markets.
Apple later changed its policy to offer full replacements of its iPhone 4 and 4S models and reset the warranty to one year.