Nikon (OTC:NINOY) Corporation revised their revenue forecast to JPY690 billion, but more importantly, they revised upward their operating profit forecast to JPY34 billion, according to the company's President, Toshikazu Umatate. Nikon reported these revised figures at their recent earnings call. Nikon stated that their imaging products and healthcare businesses have shown strong performance, while the precision equipment and component businesses are confronting challenges due to the sluggish semiconductor market.
Earnings call key notes
- Nikon stated that interchangeable lenses sales have also been revised upwards, contributing to a raised revenue forecast of JPY275 billion.
- Nikon's first-half revenue increased to JPY331.2 billion, while operating profit was JPY13.6 billion, as reported by CFO Mr. Tokunari.
- The imaging products business saw significant growth, leading to a 14% increase in sales volume and an 8% increase in interchangeable lenses compared to last year.
- The Precision Equipment business experienced a decrease in sales volume for semiconductor lithography systems, though sales of FPD lithography systems are expected to rise.
- The Healthcare business performed strongly in the first half, leading to an increase in revenue forecast by JPY8 billion.
- The Component business, affected by the sluggish semiconductor market, resulted in a decrease in revenue forecast by JPY6 billion.
- The Digital Manufacturing business has been negatively impacted by customers' changes in investment plans, leading to a decrease in revenue forecast by JPY2 billion.
- Despite uncertainties in the semiconductor market, Nikon plans to minimize the impact by making timely investments and aims to return to profitability in the next fiscal year.
This should not be a surprise as we have seen a significant until in sales since the announcement of the Nikon Z8 in the spring of 2023. Coupled with strong sales from the Nikon Z9, and the recent release of the Nikon Zf, Nikon is on a strong footing after spending years downsizing and refocusing their research and development. Recent sales figures out of Japan show Nikon dominating the top 3 camera sales at Yodobashi, the fourth largest Japanese camera retailer.