Nikon Sees Q2 Growth, Expects Flood Impact - Twice

Nikon Sees Q2 Growth, Expects Flood Impact

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Tokyo -

Nikon

Friday issued fiscal second quarter financial results as well as guidance for the year ending March 2012 showing lowered operating income forecasts resulting primarily from the flooding of factories in Thailand.

The company said it is gradually increasing production in other areas of the world, with alternative production slated to begin in December at Nikon group plants in various countries and at partner factories in Thailand.

"Production will partially resume from January 2012 at Nikon (Thailand) Co., Ltd., and production of digital SLR and interchangeable lenses will return to the normal level by the end of March 2012," Nikon Thailand said in a statement Friday.

As for Nikon Thailand, which manufacturers mostly D-SLRs and interchangeable lenses, the company said manufacturing facilities in the Rojana Industrial Park in Ayutthaya Province sustained flooding damage to the first floor of all buildings, and the premises is still submerged, though water levels are gradually declining.

Operations were halted at the facility on Oct. 6. No injuries were reported to Nikon employees.

Meanwhile, Nikon said it now expects to post a 55 billion yen ($703 million) net profit, and 67 billion yen ($856 million) operating profit on 925 billion yen ($11.8 billion) in revenue this fiscal year.

For the fiscal first half ending in September, the company reported a net profit of 50.44 billion yen ($645 million), compared with a 10.64 billion yen ($136 million) profit in the same period a year ago.

Operating profit jumped to 61.17 billion yen ($782 million) from 15.17 billion yen ($194 million) and revenue advanced to 486.31 billion yen ($6.2 billion) from 398.03 billion yen ($5 billion) the year before.

Sales grew 15 percent and income rose 76 percent in the first half.

The company said sales of compact digital still cameras rose 17 percent in the first two quarters.

The company said that in the coming months, sales efforts will concentrate on the new Nikon 1 mirrorless interchangeable lens camera system.

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