Pentax takes the fall

[Riley]

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I hope you were not planning on picking up a 645

it looks like theyre in trouble

 

Thursday, May 10, 2007 3:20 a.m. (JST)

 

Pentax To Sell Tokyo HQ, Quit Low-Profit Ops To Lift Corp Value

 

TOKYO (Nikkei)--Pentax Corp. (7750) plans to sell its Tokyo headquarters and withdraw from less profitable businesses under strategies the camera maker has crafted to block a takeover bid by optical glass manufacturer Hoya Corp. (7741), The Nikkei learned Wednesday.

 

the text of the article includes this statement -

 

"On top of this, Pentax will continue to overhaul less profitable businesses. It will abandon the development of medium-format single-lens reflex cameras designed for professional photographers and specialize in digital SLR offerings for new and intermediate users."

[craigrmurray]

Not too surprising, considering how small the market is, and has been for decades. I wonder if any medium format manufacturer will survive the digital changeover?

[elansprint72]

Not too surprising, considering how small the market is, and has been for decades. I wonder if any medium format manufacturer will survive the digital changeover?

 

I can't see any of them lasting much longer- the unit prices are too high because the demand is so low; a downward spiral. The second-hand market seems to be awash too as the few remaining pros and serious dabblers switch over.

 

As an ex 6x7 user I thought about grabbing a 6x7 bargain(s) but can I really be arsed with all that agro that goes with film processing? Nah.

 

Did just buy two pair of reading specs with Pentax lenses though.

[ho_co]

Rob--

Could you post a link to the article (if in English)?

 

Thanks for the heads-up.

 

--HC

[Riley]

Rob--

Could you post a link to the article (if in English)?

 

Thanks for the heads-up.

 

--HC

 

sure

Nikkei Net Interactive - Japan Business News Online

but its a subscriber link, you just get the first part of the passage

Im sure other agencies will cover it soon

[sdai]

The Japanese version of the report is free to all but there's nothing new adding to this matter.

 

Japanese version of the Nikkei report

 

It's well known that Hoya was intended to split up Pentax's business lineups and dump the camera division after the proposed merger, needless to say this stirred up a lot of opposition.

 

The primary shareholder is basically on the pro merger side and the latest development of the nasty corporate drama is simply another shake up under shareholders' pressure ... the camera enthusiasts are letting go ... it is that simple.

[gepetto]

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Pentax hasn't taken any fall.

 

Nothing in those articles has any official word from Pentax.

[Guest stnami]

. :cool: :cool:

[hankg]

Pentax is and has been profitable. The company is not in the sort of trouble that Leica has been in, but a purchase by Hoya could mean the end of divisions that where profitable but will be sold off, closed or downsized anyway to realize a bigger return to the new owner. If Pentax can block the takeover it will retain all it's employees and do some restructuring (bye, bye medium format film) to increase it's profitability. That would mean continuing development of the Pentax DSLR line. I hope for the sake of the companies many employees that Pentax succeeds with its plans.

 

It would seem Leica and Pentax have both made the welfare and security of valued employees (and the expertise and experience they have accumalated) part of their business plan. It's a concept that would be scoffed at here in the US as that sort of corporate behavior would be severly punished by the financial community. Executives who lay waste to communities, employee pensions and stick it to employees who spent a lifetime devoted to the company, pocketing the cash generated for themselves with pay packages and stock options the size of the GDP of some small countries are held up as the ideal.

[wlaidlaw]

I can't see any of them lasting much longer- the unit prices are too high because the demand is so low; a downward spiral. The second-hand market seems to be awash too as the few remaining pros and serious dabblers switch over.

 

As an ex 6x7 user I thought about grabbing a 6x7 bargain(s) but can I really be arsed with all that agro that goes with film processing? Nah.

 

Did just buy two pair of reading specs with Pentax lenses though.

 

Pete,

 

I thought you were still using the wet collodion process.

 

Wilson

[wlaidlaw]

Pentax is and has been profitable. The company is not in the sort of trouble that Leica has been in, but a purchase by Hoya could mean the end of divisions that where profitable but will be sold off, closed or downsized anyway to realize a bigger return to the new owner. If Pentax can block the takeover it will retain all it's employees and do some restructuring (bye, bye medium format film) to increase it's profitability. That would mean continuing development of the Pentax DSLR line. I hope for the sake of the companies many employees that Pentax succeeds with its plans.

 

 

Hank,

 

I hope for Leica's sake you are right otherwise it is one nail in the coffin for the 4/3rds standard. Given the amount of spam I get sent, offering remaindered Oly digitals, both P&S and DSLR's at silly prices, I would not be too surprised to see that being the next one over the cliff.

 

Wilson

[Riley]

Hank,

I hope for Leica's sake you are right otherwise it is one nail in the coffin for the 4/3rds standard. Given the amount of spam I get sent, offering remaindered Oly digitals, both P&S and DSLR's at silly prices, I would not be too surprised to see that being the next one over the cliff.

 

Wilson

 

Olympus just posted a 67% increase in profit, and this after a 62% increase in profits from last quarter. And this without the new cameras, there being 3 this year.

 

I believe Pentax have been funding their market position in dSLR sales with their own capitol. Clearly they weren't into the Hoya thing for nothing, something is going wrong for them.

[hankg]

Olympus just posted a 67% increase in profit, and this after a 62% increase in profits from last quarter. And this without the new cameras, there being 3 this year.

 

I believe Pentax have been funding their market position in dSLR sales with their own capitol. Clearly they weren't into the Hoya thing for nothing, something is going wrong for them.

 

A company doesn't have to be failing to be a takeover target, if the buyer feels the parts are worth more then the whole, profit can be made breaking the business up or selling off some divisions and keeping just what you feel is important for your own business plans.

[sdai]

Pentax just held a press conference in Japan and it turns out that much of the speculation in the original Nikkei report is inaccurate.

 

The company management is still against the merger so the new business initiative is basically a counter-merger strategy to convince the shareholders that keeping the company's camera business can be more lucrative than being taken over.

 

In general, this is what they're gonna do:

 

A projected annual output of 1 million DSLR units by 2009, this includes entry level, mid-level and high-end models.

 

Manufacturing facilities in China (Shanghai, Guangdong), Vietnam to be expanded.

 

Sales networks in China, Russia and east Europe to be expanded.

 

Core business units remain ... life care precision optics, digital imaging, and optical parts.

 

Enhancement to US sales networks.

 

Internal reorganization.

 

Tokyo headquarter not for sale.

 

Original report can be found on DC watch web site here:

 

Original DC Watch Report in Japanese

[sdai]

Forgot to mention ... they plan to introduce 10 new lenses in 2007 and 25 by 2009. One has to agree that they're certainly in much better shape than Olympus is. LOL

[FastFashnReloaded]

Hank,

 

I hope for Leica's sake you are right otherwise it is one nail in the coffin for the 4/3rds standard. Given the amount of spam I get sent, offering remaindered Oly digitals, both P&S and DSLR's at silly prices, I would not be too surprised to see that being the next one over the cliff.

 

Wilson

 

I think Oly will surprise you. Have you tried the E-410 yet? It is very nice.

 

Also, Leica is back for sale in Indy, Roberts just put in a display case with the M8 and other Leica cams and lenses in it.

[Riley]

i wouldnt be surprised if Pentax had another press conference next week

and announce they are building rubber bumpers and starting handles for GM

while fending off a takeover by Sachsenring AG Trabant

[Riley]

PENTAX

.....................Quarterly(Dec '06)./. Annual(2006)

Net Profit Margin 2.35% 0.64% -

Operating Margin 6.24% 0.56% -

EBITD Margin - 4.01% -

Return on Average Assets 2.91% 0.73% -

Return on Average Equity 10.20% 2.19% -

Employees 5,651

 

OLYMPUS

....................Quarterly(Mar '07)./.Annual(2007)

Net Profit Margin 5.12% 4.47% -

Operating Margin 9.55% 8.98% -

EBITD Margin - 12.59% -

Return on Average Assets 5.53% 4.59% -

Return on Average Equity 17.36% 15.30% -

Employees 33,022

 

profit for Pentax has been as thin as a razor