andym911 Posted December 8, 2008 Share #1 Posted December 8, 2008 Advertisement (gone after registration) With such a drop in revenue for the first half year (over 40%) it indeed does look like its going to be another tough year for Leica.Significant losses for the half are of course imapcted by increased R&D but the sales drop is huge. They desperately need new products to sell in the 2nd half, and lets hope that Xmas, will at least boost some compact sales. thoughts? andy Link to post Share on other sites More sharing options...
Advertisement Posted December 8, 2008 Posted December 8, 2008 Hi andym911, Take a look here Business results Leica. I'm sure you'll find what you were looking for!
andybarton Posted December 8, 2008 Share #2 Posted December 8, 2008 Tough times for everyone will last well into 2010. Link to post Share on other sites More sharing options...
andym911 Posted December 8, 2008 Author Share #3 Posted December 8, 2008 Andy...agreed andy Link to post Share on other sites More sharing options...
earleygallery Posted December 8, 2008 Share #4 Posted December 8, 2008 Didn't I hear somewhere that Panasonic had reduced their profit forecasts by 90%? Most of my clients - varied sectors - are also revising downwards. Leica's new products from Photokina should help their full year results, The M8.2 and Dlux 4 seem to be doing well, but it would be no surprise to find them down on last year. Link to post Share on other sites More sharing options...
andym911 Posted December 8, 2008 Author Share #5 Posted December 8, 2008 James you may be right..the business results were only for the first half ending September 08..lets see how H2 looks like with M8.2 and D Lux. I am also in a business (DRP, Digital Rapid Prototyping) selling to many segments, some are still very upbeat (medical, consumer electronics) whilst others are down in the dungeons (automotive, consumer goods)...time will tell as usual, but product to market time is crucial in these days IMO. Andy Link to post Share on other sites More sharing options...
Theodor Heinrichsohn Posted December 8, 2008 Share #6 Posted December 8, 2008 I read the news about the downturn in Leica sales on Saturday. On that day I also attended a Leica presentation at a leading local photo dealer. The two new 21 and 24mm 1.4 lenses were on display, however, as dummies and not the final product (same as at the Photokina). I wonder, whether these new products will be on sale in time to catch the Christmas business. Everything points to an awful 2009 for many, if not most businesses and also for many individuals. My year end wish is that it will turn out better than I fear. Teddy Link to post Share on other sites More sharing options...
marknorton Posted December 8, 2008 Share #7 Posted December 8, 2008 Advertisement (gone after registration) Interesting the press release refers to 5 new M lenses but there were only 4. Maybe one was held over for PMA? 18mm f4? Leica has got into the habit of announcing products too far in advance - the S2, the M lenses, the new sport optics. I expect the FY results will be similarly disappointing, but to lose €7m - for whatever reason - in half a year must make grim reading. Link to post Share on other sites More sharing options...
wattsy Posted December 8, 2008 Share #8 Posted December 8, 2008 Interesting the press release refers to 5 new M lenses but there were only 4. Maybe one was held over for PMA? 18mm f4? Probably including the silver anodised 28mm/F2 as a new lens. Link to post Share on other sites More sharing options...
marknorton Posted December 8, 2008 Share #9 Posted December 8, 2008 Yes, you're right, wasn't on my radar... Link to post Share on other sites More sharing options...
dominic Posted December 8, 2008 Share #10 Posted December 8, 2008 No surprise because these results were anticipated. See: "For the fiscal year 2008/2009 the Board of Management expects a Group net loss in the higher one-digit € million range, resulting from research and development expenditure, selling costs and delayed market introduction of new products." Press release Solms, June 18, 2008 Link to post Share on other sites More sharing options...
andym911 Posted December 8, 2008 Author Share #11 Posted December 8, 2008 yes but 7m in 6 months is a bit high. andy Link to post Share on other sites More sharing options...
ho_co Posted December 8, 2008 Share #12 Posted December 8, 2008 Would someone post a link to the story? Thanks. Link to post Share on other sites More sharing options...
andym911 Posted December 8, 2008 Author Share #13 Posted December 8, 2008 Leica Camera AG - Investor Relations - Financial Reports here you can download the latest fiscal results. andy Link to post Share on other sites More sharing options...
ho_co Posted December 9, 2008 Share #14 Posted December 9, 2008 Thanks, Andy. I never think to check the press releases. Boy, what a euphemism when they say (final paragraph) "expect a ... net loss in the higher one-digit Euro million range...." Wouldn't it be more general practice to word this as "high seven-digit Euro range"? Link to post Share on other sites More sharing options...
marknorton Posted December 9, 2008 Share #15 Posted December 9, 2008 No surprise because these results were anticipated. See: "For the fiscal year 2008/2009 the Board of Management expects a Group net loss in the higher one-digit € million range, resulting from research and development expenditure, selling costs and delayed market introduction of new products." Press release Solms, June 18, 2008 Well, yes, it is a surprise, actually. That June press release was anticipating a near 8 digit loss for the whole of 2008-2009. As it is, they've managed to do that in just 6 months and you can bet the second six months is going to be worse than the first. Link to post Share on other sites More sharing options...
barjohn Posted December 9, 2008 Share #16 Posted December 9, 2008 "Leica Camera AG reported earnings results for the first half year ended September 30, 2008. For the period, the company reported a net loss of €7.2 million ($9.2 million), after a profit of €6.5 million a year ago. The company blamed the result on lower sales and increased development costs, although they were partly offset by cost-savings in other operating expenses. Sales in the six months to the end of September fell to €52 million from €88.8 million..." Note that this is worse than the spin Leica gave it. Look at the delta in profits of +6.5 to -7.2 or a swing of 13.7M Euros and a decline in sales of 38.8M Euros. With the S2 still off in the future, no R10 and no M9 or CL and not even the new lenses (their strength area) you have to wonder how long they can go this way. I don't think the recent price drops have increased sales sufficiently to make up for the rapid decline in sales and profits. I, like many others, hoped that photokina would lead to a CL version priced around $2k which would have possibly saved their bacon. Instead they introduced a camera few Leica owners have wanted or asked for at a price point ($15 to 20 K Euros) that few will afford or buy. Look at the resistance Nikon is getting to the pricing for the D3x at $8K. I don't see their strategy working at all. If I were them, I would obtain the inner workings of the Panasonic G1 or Olympus micro 4/3rds version and build a CL around it. Price it at $2K and sell the heck out of it with both micro 4/3rds mount and M mount adaptor. Link to post Share on other sites More sharing options...
sdai Posted December 9, 2008 Share #17 Posted December 9, 2008 Micro 4/3 is a stab into Leica's back ... it's worse than feeding a troll on an Internet forum, Leica lent its name to help grow a shady camera business and now they're no longer needed. Link to post Share on other sites More sharing options...
Hakku Posted December 9, 2008 Share #18 Posted December 9, 2008 If I were them, I would obtain the inner workings of the Panasonic G1 or Olympus micro 4/3rds version and build a CL around it. Price it at $2K and sell the heck out of it with both micro 4/3rds mount and M mount adaptor. Micro 4/3 is a stab into Leica's back ... Not neccessarily so, might push sales of the 'economy line' of Summarit lenses. Even more so if the Micro 4/3 would be adopted for kind of CL body well under 2K. Horst Link to post Share on other sites More sharing options...
marknorton Posted December 9, 2008 Share #19 Posted December 9, 2008 Yes, but even the widest of the Summarits - 35mm - is longer than a traditional "normal" lens on micro 4/3rds. An opportunity for some of the wider CV lenses though. Link to post Share on other sites More sharing options...
bill Posted December 9, 2008 Share #20 Posted December 9, 2008 Yes, but even the widest of the Summarits - 35mm - is longer than a traditional "normal" lens on micro 4/3rds. An opportunity for some of the wider CV lenses though. We're not all wideangle freaks. Actually, the thought of having a small body that acts in and of itself as a teleconverter is quite attractive in some regards. Regards, Bill Link to post Share on other sites More sharing options...
Recommended Posts
Archived
This topic is now archived and is closed to further replies.