Archived posting to the Leica Users Group, 1999/11/12
[Author Prev] [Author Next] [Thread Prev] [Thread Next] [Author Index] [Topic Index] [Home] [Search]Leica's interim second quarter financial report has been posted to their website and can be downloaded as a pdf document from http://www.leica-camera.com/untern/ir/pdf/zwbq2_e.pdf Actually, the financials in it are quite positive and paint a picture of a company succesfully turning itself around. (If you dislike reading lots of numbers, skip what follows). The report states, in addition to what Christer posted (below), that M system sales are up 17.6% compared to the same period a year ago, thanks largely to increased orders from Asia. The M system is 28.6% of total Leica sales, their best selling product line by far. Binoculars sales are up 19.5%. Leica is introducing a Trinovid 8 x 20 special edition binocular made from solid brass. Projector sales are up slightly, at 3.9% However, compact camera sales are down 32% because, according to the report, new products are being introduced later than last year. But the new C1 point-and-shoot and the new Digilux zoom give reason for 3rd quarter optimism. R system sales continue to plummet, down another 21.3% compared to the same period last year (and recall that Leica's annual report stated that last year R sales fell below where they were before the R8 and new lenses were introduced). The financial report states that, "measures designed to stabalise [R system] sales...include a prolongation of the warranty for Leica R8 cameras to five years, a favourable financing offer in the German market, and the addition of the Leica Motor-Drive R8...." It's hard not to notice that Leica doesn't mention stimulating R sales with new products other than the long-promised motor drive. By region, overall sales were up 38.6% in the Asia/Australia region (though sales in Japan remained constant), up 12.4% in the US, and up 10.3% in Europe outside Germany, but down 27.9% in Germany. They blame the German decline largely on decreasing SLR sales. Larry >>>>>>>>>> The second quarter (July-Sept) results were published in German newspapers today: - - - operating loss was .2 million DM (divide by two to get approx $) vs. 2 million DM loss 2nd Q last year - - - the after tax los was 1.5 million DM vs 4.2 million DM - - - R&D was up by 28% or 1 million DM to 4.6 million DM - - - sales were unchanged 65 million DM - - - second half year expected to be profitable due to tradional higher sales in that period, new products and effect of cost reduction; full year after tax result is expected to be break-even. <<<<<<<<<<