Leica doing well:

[jaapv]

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Presseportal: Leica Camera AG - Jahresabschluss 2009/2010: Leica Turnaround

[Wolfgang Esslinger]

Thanks for the information. Good to hear that the strategy seems to work. Let's hope for some great product news in September.

[andybarton]

Google translation to save people the bother of doing what I have just had to do

 

S

olms (ots) - New products and a successful completion of restructuring projects have brought the Leica Camera AG back in the black.

The proportion of the financial statements for the reporting period from 1 April 2009 to 31 March 2010 exceeded expectations: With sales of EUR 158.2 million, the company is EUR 24 million, or 18% over the previous year. The operating result (EBIT) rose to EUR 7.4 million after the 2008/2009 financial year with a loss of EUR 1.3 million was recorded.

Net profit amounted to EUR 3.2 million (previous year: EUR -5.2 million).

 

The figures show the third quarter since 2009/2010 and launched in the fourth quarter of accelerating growth and earnings trend. A series of new products from September 2009 led to significant increase in orders received. The new professional camera S2, the M9 - the smallest digital camera system in the world with full-frame sensor - and the reporter's camera handy X1 from international markets have been very well received. Additional innovations in the field of sport optics, as presented at the IWA 2010 Laser Rangefinder Leica CRF 1600, underlined the chosen INNOVATIONS.

Leica currently accounts for over 50% of its sales with products that are less than nine months.

 

Major factor in the improved result was a restructuring project that included only the reduction of purchasing costs, and other operating expenses also changing distribution structures.

 

In view of the current business performance underscored the CEO Rudolf Spiller's development potential, "Leica is back. Innovative technical solutions, outstanding product quality and unique design in the red dot find the world more and more enthusiastic buyers. With a clear course for innovation and a strong and efficient structure Leica has set the course for a successful turnaround.

The success was possible because employees and managers the necessary changes have taken with a view to common goals and made more active. "

 

Chief Financial Officer Andreas Lobejäger confirmed the positive outlook: "The combination of strong revenue growth and significantly increased efficiency allows Leica greater financial leeway.

Leica improved its working capital, cash flow and the equity base significantly. "

 

[jaapv]

Oops- sorry I should have done that - I didn't realize it was in German when I read it:o

[johnnyj]

It seems that usually there was so much negativism when Leica was not doing well I just had to make a positive statement for their continued success; especially during the current economic climate. Congratulations to Leica, their employees, their management team and the good Doctor.

[NZDavid]

Good result despite moans and groans on the Leica forum -- obviously new products are going well. Look forward to more!

[Fotomiguel]

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I'm happy to read this!

I'm just curious how is going the S2 Sales? It's not for me unless I win lottery.

[LuxBob]

Good return from loss to profit but to be viable Leica has to keep this going to get a much bigger and consistent return.

That's a narrow profit though and I think unstated is how much of that is due to exchange rate benefits. My continuous refrain is that if they continue spending on R&D to produce a constant stream of new models they will be out of business. If they could produce one lens or at most two, with different flanges for each model that would dramatically reduce costs and increase profits. Abandoning the R, for example and then producing the imemensely expensive S range I cannot see any being justified in any sensible business plan. The X1 lens should be a standard Elmar glued into the X1 body. Is it? If not, it is more iunecessary additional cost.

If they are to stay in business and prosper they have to streamline production, sell what they have and produce nothing more until there is a healthy profit stream.

But I guess they won't.

[crm.ecosse]

Google translation to save people the bother of doing what I have just had to do ...

 

[/indent]

 

This is published in English on the Leica Camera web-site see -

 

 

Leica Camera AG - Investor Relations - Financial Reports

 

 

Best regards.

 

crm.ecosse

[jaapv]

Good return from loss to profit but to be viable Leica has to keep this going to get a much bigger and consistent return.

That's a narrow profit though and I think unstated is how much of that is due to exchange rate benefits. My continuous refrain is that if they continue spending on R&D to produce a constant stream of new models they will be out of business. If they could produce one lens or at most two, with different flanges for each model that would dramatically reduce costs and increase profits. Abandoning the R, for example and then producing the imemensely expensive S range I cannot see any being justified in any sensible business plan. The X1 lens should be a standard Elmar glued into the X1 body. Is it? If not, it is more iunecessary additional cost.

If they are to stay in business and prosper they have to streamline production, sell what they have and produce nothing more until there is a healthy profit stream.

But I guess they won't.

Far be it from me to try and sit on Dr. Spiller's chair. But this statement is hard to understand in the light of the fact that the report makes clear that the turnaround is wholly due to products that are less than 9 months old. Now how can Leica produce those without investing extensively in R&D?. The essence of the company, that is clearly set out, is bringing new and world-class innovations to the market.

[hoppyman]

Pretty clearly the M9 is a success of course and only represents the second all new M design in three years or so. That is quite leisurely if you like, in a digital market.

 

In my opinion, it makes sense to keep progressively updating the M lens range since it is such a core part of their business. Just try to shop around for any of the new lenses or an M9 to see how much demand there is, so the market seems to agree.

 

12 months ago Stefan Daniel was quite candid with Forum members that the R10 project just didn't make sense for them given how the financial world has changed. Reportedly it would have had to sell for 6000 to 7000 EURO and compete in a market crowded with dSLRs. But that is old news.

 

Im not sure what you had in mind regarding lens commonality but obviously the designs are not interchangeable with different flange distances as the very first obstacle. The X1 has a quite different set of requirements to M's and of course the M lens image circles are insufficent for an S sensor. Those are quite apart from the need to incorporate things like auto focus, central shutters, weather resistance, form factors, electrical interfaces, backwards compatibility and I'm sure that there are more.

[digbyhp]

Its great to see that the company has had a financial rebound. Let's hope it's sustainable. But you know, it is possible to invest heavily in R&D, produce a high-quality and durable product and still be commercially successful over the long term - Mercedes seem to manage it. Let's hope Leica can as well.

[jaapv]

Hmm - it seems Leica is doing better than Mercedes..

 

http://www.daimler.com/Projects/c2c/channel/documents/1813939_DAI_2009_Annual_Financial_Report.pdf

[stuny]

Digby & Jaap -

 

Perhaps Porsche would have been a better company to cite.

[jaapv]

Possibly - however I think both Porsche and Mercedes products take lousy photographs

[Ecaton]

Good news. And the week Euro should give profitability a little boost in 2010 since quite a percentage of sales is derived from regions with currencies appreciated against it, and a lion share of expenses (labour) remaining in Euro.

[cbretteville]

Hmm - it seems Leica is doing better than Mercedes..

 

Leica don't make cars that have to spend a large part of their life at the garage for goodwill rust repairs - in addition to the time it takes to repair issues with steering and suspension. I've had two MBs and will most likely never own another one. Sad to see a good brand go bad due to lousy engineering and poor qualiy control, but that is what is happening.

Carl

 

Oh btw: glad to see Leica making a profit.

[Jeff S]

Good return from loss to profit but to be viable Leica has to keep this going to get a much bigger and consistent return.

That's a narrow profit though and I think unstated is how much of that is due to exchange rate benefits. My continuous refrain is that if they continue spending on R&D to produce a constant stream of new models they will be out of business. If they could produce one lens or at most two, with different flanges for each model that would dramatically reduce costs and increase profits. Abandoning the R, for example and then producing the imemensely expensive S range I cannot see any being justified in any sensible business plan. The X1 lens should be a standard Elmar glued into the X1 body. Is it? If not, it is more iunecessary additional cost.

If they are to stay in business and prosper they have to streamline production, sell what they have and produce nothing more until there is a healthy profit stream.

But I guess they won't.

 

At first, hard to understand this armchair CEO viewpoint in view of Leica turnaround. But, then I see your profile lists only Leica R and Digilux 2 gear. You just want you to be the audience. But, if everyone were you, there would be no profits.

 

Jeff

 

PS On a different note, Hyundai seem to be cashing in well on other auto company woes.

[pierovitch]

Go team Leica.

I'm impressed.

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Hallo,

Look here: Interesting Leica gear

[dfarkas]

I'm happy to read this!

I'm just curious how is going the S2 Sales? It's not for me unless I win lottery.

 

S2 sales are going extremely well.

 

If you look at the financial report, you'll see that the best quarter was Q4 (which is from Jan 2010 through March 2010). This is when the S2 started to ship.

 

David