- Mar 31, 2015
- Real Name
Studying the financial report, one can say the results are looking encouraging. Both sales and unit sales reduced with +/-10% indicating that Olympus was able to manage its net selling price levels well. This could mean that Olympus is competitively well priced and the market is confident with the product's price/performance ratio. This is a very positive sign, especially in terms of the 2020 events.
We also see the imaging business profitability improved well but it's concerning when studying the 3rd and 4th QTR that the costs increased again and was more than the same period in 2019. Olympus explains that the factory move continued to occur legal costs in terms of move from China and other unexpected expenses. Olympus did well improving SG&A efficiency and it does seem they will be able to improve even more towards 2021.
It's clear the restructure they were forced into over the past 10 years is now showing positive results. Olympus mentions the virus in their report but it is difficult to see the real impact in the imaging business. The biggest sales reduction was Asia which probably is a result of the virus. The rest of the world also had fewer sales but the impact the virus had will only show in the next financial report.
The imaging business had a difficult past 10 years. Rebuilding the company was major and then developing a completely new business strategy and vision was obviously not easy. Moving the factory to Vietnam, the various corporate programs to prepare Olympus for the future, and then these positive results. They are enough to make me excited with Olympus and the Imaging Business future.
When we study the competitive situation then we see competitors like Canon, Nikon, and Fuji are not in the same position. Not only did the virus hit the world markets hard. We see the camera industry is also in the mids of a complete transformation and it looks like the DSLR segment has finally reached an end. Three companies are standing strong today in terms of the mirrorless camera future and Olympus is one of them.
I think Olympus owners have enough reason to be optimistic. I see some doomers out there like to predict the worst for Panasonic and apparently that will also be the end for Olympus. All I can say is they have been dooming for years and were never accurate!! Have they ever considered having one less M43 competitor could increase Olympus sales?
An interesting final comment. When you study the unit sales it does seem the EM1X did much better than expected. It was launched mid last year and one can clearly see the positive impact it had in the 3rd QTR result. It also seems as if the EM5 III had a slow start. We will have to wait and see what the 2021 report looks like.
So now we need that new zooom lens and the Pen F II...