Thai floods affect Nikon profits £130
7th Nov 2011 | 11:31
Production halted until 2012
Nikon's operating profit forecast is down by 25 billion yen after floods in Thailand submerge a key camera factory.
Annual operating profit forecast has been cut by 22% to below market expectations. Previously, Nikon had hoped for record annual sales, but this now looks to be unlikely because of the damage caused by the floods.
Several Thai factories have been submerged following the floods, with many other electronic companies also reporting problems. The flood is said to have brought down Nikon's profit by 25 billion yen (c. £200m), although Nikon has drawn up plans to start production at other sites in December to try to meet demand.
Nikon has previously stated that it would not be able to restart operations at the Thai plant until January, with full production volumes not expected to be reached until March.
Previous market estimates of Nikon profit were around 81 billion yen, but Nikon now expects profit to be around 67 billion yen in the year to March.
Record sales of cameras saw profit quadruple to 61.1 billion yen, but Nikon has now cut its annual unit sales forecast for interchangeable lens cameras by 13% to 4.7 million units, although it has predicted higher sales of digital compact cameras, at 16 million units.
It's also thought by some that the Thai floods have had an impact on impending camera releases, with many expecting a D800, an upgrade to the semi-pro D700 camera.