Leica's economical performance

[Olsen]

I foud this on the Leica user forum:

Leica Camera AG / Half Year Results

28.11.2007

Release of an Ad hoc announcement according to § 15 WpHG, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
=--------------------------------------------------------------------------

In the first six months of the current fiscal year, i.e. until September
30, 2007, the Leica Camera AG Group (ISIN DE000A0EPU98) registered sales
growth of 71.2 %, to EUR 88.8 million. Sales in the Photo segment grew by
147.0 %, to EUR 62.6 million. The strong sales growth of digital compact
cameras and the success of the digital rangefinder camera M8 are clearly in
evidence here. Sales in the Sports optics segment have increased by 1.9 %,
to EUR 16.4 million.

Compared to the prior year period, Group net income/loss improved by EUR
11.0 million to a net income of EUR 6.5 million. This enhanced performance
is mainly due to the increase in sales.

For fiscal year 2007/2008 Leica Camera Group aims at achieving a positive
operating result and for the following fiscal years at further improving
its performance. The precondition therefor is that the reorientation of the
product portfolio and the implementation of the restructuring concept are
continued according to plan.
28.11.2007 Financial News transmitted by DGAP

My comments are:

I hope that the Kaufman family is satisfied with this result and that it motivates them to invest in future development. How good will the full fiscal year be? Realistically, the 2.half will not be so vigorous as the first half, but a turnover of 140 - 150 mill € are realistic. compare this with the last official figures that were published when Leica were a public company:

2004/05
Turnover: € 92,0
Operating profit: - € 18,5

2005/06
Turnover: € 106,7
Operating profit: - € 6,2

We hear that the fiscal year 2006/07 ended with a 'net loss' of - € 11 million (Please note that 'net loss/profit' is not comparable to 'operating profit') and that Leica aim at making 2007/08 with a positive net result ("For fiscal year 2007/2008 Leica Camera Group aims at achieving a positive
operating result and for the following fiscal years at further improving
its performance").

This sentence I am not sure if I really understand:

"Compared to the prior year period, Group net income/loss improved by EUR
11.0 million to a net income of EUR 6.5 million. This enhanced performance
is mainly due to the increase in sales..."

- Periodically; which YoY do they mean?

Growth of binoculars confirms a steady to slightly falling sales volume-vise, only just compensating for the cost of producing these expensive optics.

Still; the future of Leica looks 'dramatically bleak'. USA, their most important export market is lost in one of the most dramatic fall of the US dollar in history. No wonder that all the Americans here complain about all the price increases of Leica gear in USA. (- In my local currency Leica gear has been cheaper, due to the strengthening of the NOK towards the €). - There is no way that other and more virgin market can compensate for the trustworthy volume that their American customers have been contributing with up through the years. To cut cost with 35 - 40% is not easy either. Thus the price increases.

Here Leica faces the same problems as other large European exporters. Like Airbus. For the first time in 140 years Brits are cueing up in front of a bank to take their savings out. Savings they fear are lost in a credit crisis across the Atlantic. It's a small world.

[NB23]

Wow, yet another Olsen-the-world-is-coming-to-an-end post.

[cmogi10]

http://icanhascheezburger.files.wordpress.com/2007/06/sky-is-falling.jpg

[Olsen]

Wow, yet another Olsen-the-world-is-coming-to-an-end post.

-Where did I say that? In my world things are going very good. Very good indeed, - which I tried to weave in there. And the future looks bright.

[Olsen]

http://icanhascheezburger.files.wordpress.com/2007/06/sky-is-falling.jpg

...! Poor cat..!

[Roger Hicks]

Wow, yet another Olsen-the-world-is-coming-to-an-end post.

Only if you want to read it that way.

I read it as:

Yes, there are problems. BUT:

With news like this, they can be overcome.

Cheers,

R.

[emraphoto]

leica never re-badged panasonic cameras. leica entered into an agreement to provide useage of the name and lens designs for some models. the common belief that the cameras are the same (ie digilux 2 and lc1) with different badges is in fact not entirely correct. leica has always had different spec's for image processing, compression blah blah blah.
i agree though that it was a smart move and a much needed influx of dough and knowledge to make the leap into the digital age. i will foolishly assume that leica "has a plan". there are very skilled craftsmen/craftswomen and buisiness men/women making what they presume to be informed decisions about leica's future.
as far as the dire future predictions for leica's future... i mean really, hasn't this topic been covered at nauseum?

[Andy Aitken]

Yep, the M8 has saved Leica. Phew. I wonder though if it might be the case that the M8 is a small market and that it has largely been filled by now (almost everyone who wanted one now has one) - meaning that M8 sales might slow significantly from now on.

I think the new Summarits will do well but perhaps at the cost of their more expensive lenses. A digital CL IMHO would definitely be the way to keep the sales momentum going. The Summarit lenses would be the new "C" series lenses for it too.

[ClaremontPhoto]

Leica make more than just cameras and camera lenses.

I seem to recall that their other product lines sell well.

[ClaremontPhoto]

I have a Leica Digilux about ten years old made by Fuji and understand that the processor was upgraded for Leica.

It recently stopped working and the local Fuji shop refused to repair it because it was badged Leica. I was ready to send it to a Leica shop, but the very next day it worked fine.

[ClaremontPhoto]

I have a Leica Digilux about ten years old made by Fuji and understand that the processor was upgraded for Leica.

It recently stopped working and the local Fuji shop refused to repair it because it was badged Leica. I was ready to send it to a Leica shop, but the very next day it worked fine.

[ClaremontPhoto]

Stephen:

I only clicked once...

[rover]

In addition to the kitty, I am seeing a need for the pancake bunny in these threads.

[ClaremontPhoto]

What is 'pancake bunny'?

[rover]

http://www.syberpunk.com/images/oolong/oolong.jpg

[philhirn]

That article is a little bit interesting, I wonder what they mean by a digital oversize sensor for the R-series? something in between full frame 35mm and medium format? Apparently an all new series with new lenses, mount etc. And a sort of "small" digital M??

[infocusf8@earthlink.]

I hear they'll soon market a small 12 MP rangefinder based on the CL CLE body with a Leica processor and Panasonic electronics called the Panacea. It will be the Leica for the masses.:cool:

[brachal]

http://www.syberpunk.com/images/oolong/oolong.jpg

Great. I won't be right all day. :) To quote from Futurama, "You've seen it, and you can't UN-see it!"

[Trius]

A CL-sized digi RF from Leica would sell. 12MP wouldn't be necessary, 8 or 10MP would be fine with me. It would make sense to implement the M8 sensor as they have paid for the R&D on that. Then if the M9 comes in w/ a 24x36 sensor, the lineup would be:

C-Lux (or maybe gone?)
DigiLux (4/3s)
CL-D
M9
R-x DSLR

Only the M9 would be Solms production for sure, maybe the CL-D, thus optimizing production efficiency for the rest of the line.

[philhirn]

ErikFive, I was actually sort of translating some of what was left unclear in the google translation, they are not Kaufmann´s words, but rather stated as a "fact" by the article´s writer. So I also assume they would mean something like a monster MkIII, unless the article´s writer doesn´t really know his stuff. And a FF "M9" was always the obvious next step (though that must be hard to take for current M8 owners).

[varjag]

There should be some ways to make a "not-so-expensive" (can't press myself say cheap) Leica digital RF. Get rid of LCD and unnecessary associated controls for a start - a few hundreds are sliced off right away. Then, the M8 sensor by that time will be unimpressive old technology not costing nearly as much as at time of introduction. Most of M8 circuitry will probably be reused as well, eliminating extra R&D costs that otherwise have to be recouped.

Still I'd be surprised if it will be priced below $3000.

[jobo]

ErikFive, I was actually sort of translating some of what was left unclear in the google translation, they are not Kaufmann´s words, but rather stated as a "fact" by the article´s writer. So I also assume they would mean something like a monster MkIII, unless the article´s writer doesn´t really know his stuff. And a FF "M9" was always the obvious next step (though that must be hard to take for current M8 owners).

Also, note that the author writes in the subjunctive mood about the M9 and the CL digital, but not about the R10.

2c, /J

[Olsen]

"First, there will be M9 viewfinder camera with a full-size sensor. That brings the highest picture quality. Moreover, a R10-Spiegelreflexkamera with übergroßem chip and autofocus in the works - a new complex to the closure and the lenses. And finally, should provide a kind of "small" digital M on the market."




Erik,

Sorry, but this is pure speculation on the journalist's part. A 'full size M9' is not technically possible - without even further grave technical problems already revealed in the M8. - Still a M9 with a crop'ed sensor could offer considerable improvements compared to the M8.

Further....

Kaufman has earlier 'given his thoughts' to another journalist on the R-series future. He seemed uncertain about what to do with the R-series and if Leica at all had the resources to develop it further. - There was a link to this interview earlier here. Although an AF camera with a sensor slightly larger than the old 24x36 mm 'negative' could be quite realistic. Provided Leica has the resources to pull it through.

Short term; more realistic is a compact and cheaper ('pancace') 'DCL-M' which will be affordable for a larger market, not the least the American users.

[jaapv]

ErikFive, I was actually sort of translating some of what was left unclear in the google translation, they are not Kaufmann´s words, but rather stated as a "fact" by the article´s writer. So I also assume they would mean something like a monster MkIII, unless the article´s writer doesn´t really know his stuff. And a FF "M9" was always the obvious next step (though that must be hard to take for current M8 owners).



The original text is a lot more careful than the Google translation. Let's translate properly: It does not say " there will be a..." but "there is supposed to be.." which sounds a considerably different. Nor does it say " Thus far....innovations" That translates better as:
" As far as known up till now the developers are fiddling primarily with three innovations. On one hand there is supposed to be an M9 rangefindercamera with full-frame sensor. That makes for maximum image quality. Further they are working on a R10 DSLR with an extra large chip and autofocus, a complicated development, especially the shutter { ??? I presume they mean the mirror} and the lenses. And finally there is the possiblity that some kind of " small" digital M should come on the market."

It sums up what we find on LUF but tells us nothing about actual developments, as "The company tells us little about the future model lineup"....

The whole die Welt article is a compilation of Leica press handouts and Internet forum summaries and adds nothing new.