Nikon Group, which is the parent company, is a group of various industrial and consumer business departments. Among these include Nikon cameras. The company has revealed what it called a “Notice of Recognition of Extraordinary Loss” concerning the three-quarters which ended December 31, 2016.
Amid this loss, the company postponed its premium line of DL cameras. It also revealed that it is going to carry out a restructuring of the company. Strategizing through pursuing revenue growth to a strategy where it seeks profit enhancement. Nikon revealed a shortfall of about $262M USD exceeding the loss which had been forecast before. Thus, it brought the whole loss for the three-month quota to almost $500M USD.
Almost all new losses stemmed from the Semiconductor Lithography Business. It is the technical term for the Nikon company division that produces electric circuits.
Nikon announced an upcoming loss for the fourth quarter. It is because of a “Solicitation for Voluntary Retirement.” A program meant to allow workers to retire early. It is a strategy which Nikon hopes to use to cut on long-term employee costs.
The DL camera line had been anticipated to be a strong competitor to the high-end compact digital camera market. It was to tussle it out with models like the Sony’s RX100 V. After multiple bouts of postponements, the future of the DL came into light. Escalating rumors about this loss revelation indicated the camera was not going to see many days.
The company came up with reviewed financial planning for March 31, 2017.
Nikon issued a press release, which is below.
TOKYO – Nikon Corporation announced today that sales of the long-awaited DL series of premium compact camera, the DL18-50 f/1.8-2.8, DL24-85 f/1.8-2.8, and DL24-500 f/2.8-5.6, will be canceled.
A June, 2016 release was originally planned for the DL series. However, with the identification of issues with the integrated circuit for image processing, release of the three cameras was delayed indeterminately.
Since then, everyone involved has worked very hard to develop products with which our customers will be satisfied. However, it has been decided that sales of the DL series will be canceled due to concerns regarding their profitability considering the increase in development costs, and the drop in the number of expected sales due to the slow-down of the market.
We sincerely apologize to all those affected by this decision, especially those customers who waited so long for the cameras to be released, retailers and others whose business will be affected, for the inconvenience this decision may cause.