Nikon Revenue- DOWN
Nikon Revenue Down
Unsurprisingly, fewer people and organizations have wads of cash to throw at new cameras:
Per-share revenue was down nearly 45% for the 6 months from April to December! However, revenue was down ~12 billion yen, ~$133m.
The fiscal year ends in March 09 and revenue is expected to be 10%, while profit is expected to be down 68% from the previous year.
Interestingly, revenue isn’t down terrible, but profit is tanking- presumably because the higher-end items with more profit (D3x, exotic lenses, industrial equipment that costs a fortune) aren’t being bought in the volumes they were.
Not good.
Tags: economy
February 12th, 2009 at 07:43
When revenue goes down a little, profits go down a lot. It has to be this way. For most businesses, the first 85-90% of the revenue goes to covering costs, and the rest is profit. So if revenues are down 15%, profits are down 100%. So what happens when revenue goes down 40-50%? DISASTER, that’s what.