Tokyo — Nikon reported that net sales rose, but net and operating profits were down by double digits for its fiscal year, ended March 31.
Nikon said in its imaging products business, the interchangeable-lens market climate “took a sharp turn for the worse from the middle of the third quarter. Additionally, the compact digital camera market continued to shrink.” Sales for its precision equipment instruments business were also off.
Corporately, net sales this year increased by 10 percent to a record-high of 1,010,493 million yen. However, due to the impact of the worsening market conditions, operating income decreased 36.3 percent year on year to 51,001 million yen, and net income was 42,459 million yen, a 28.4 percent decrease year on year.
Nikon said its imaging products business showed “strong expansion” up until the third quarter.
Net sales increased by 28 percent for the group from the previous fiscal year to 751,240 million yen, and operating income increased by 12.5 percent from the previous fiscal year to 60,711 million yen.
“Amid this situation, among the digital camera ― interchangeable-lens type, digital single-lens reflex (SLR) cameras showed steady sales growth for existing products, such as the D800,” the company said.
In addition, Nikon temporarily increased product inventory as a measure to mitigate related risk for floods in Thailand, and “were forced to lower prices particularly for entry models as the market conditions deteriorated from the middle of the third quarter. We made progress in inventory reduction and were able to reduce the inventory level as planned by the end of the fiscal year.”
The company noted that advanced camera―interchangeable lens type Nikon 1 captured a high market share especially in North America and Europe, raising brand awareness for the series.
Amid a shrinking compact digital camera market, the group captured top market shares in each region as a result of efforts to launch and expand sales for product lines “with distinctive features,” Nikon said.