Here is the latest financial news from Bloomberg for the first financial quarter business results of Hoya:-
Two paragraphs in the report quoted:-
1. "Operating profit, or sales minus administrative expenses and the cost of goods sold, declined 3.5 percent to 21.9 billion yen ($199 million) in the three months ended June 30, Tokyo-based Hoya said today."
2. "Pentax had a 38 million yen loss in the quarter."
Besides, here is another more detailed report on the same news by the Tech-On! News of the Japanese Nikkei Business Publications:-
The key paragraphs are also quoted, as follows:-
1. "Sales declined 6.1% to ¥130.156 billion (approx US$1.18 billion) and operating income decreased 8.2% to ¥21.857 billion, compared with the previous year's results including those of Pentax Corp, which Hoya bought out in March 2008."
2. "Digital camera business to be downsized"
3. "Concerning the digital camera business operated by Pentax, Hoya said it will aim to secure its profit by reducing the business scale from now on. Amid the market environment, where the price competition intensified and sales growth of SLR products slowed, financial results of Pentax also plunged with unit sales decreasing and unit price lowering in the April-June quarter."
4. "A sales decline of about 20% is anticipated to continue in the July-September quarter, as the business unit is building up inventory, lagging behind its rivals and market demand when releasing products, according to Hoya. The company is planning to cut costs by streamlining its bases in Japan by shifting production overseas and outsourcing, as well as reducing production to an appropriate level from now, it said."Well, now, do some of the above statements sound very familiar (if you have read here just a little bit long enough). Those are what I have been talking about for quite some time now! Actually, the current situation is just somehow trivial and predictions are not really difficult.
But, the most worrisome thing as learnt from these news reports is not about those obvious things and facts (which are just so obvious except for those particular group of stupidly brand-blinded fanboys who are either not knowing the facts or not been unable to face them) BUT about the attitude and new direction/policy that will be taken by Hoya which will affect Pentax directly and of course their existing users much.
Now, even the Press and Media generally have the same view and have given a tone that Pentax is just like a burden to Hoya and have caused Hoya to earn less (but undoubtedly it is just a fact), what the shareholders of Hoya will think and (decide to) do - none of us will know exactly but of course they will! Really rather worrisome afterall.. :-(
Anyway, my own simple view is: to make Pentax profitable, Hoya MUST FIRST INVEST, which is the ONLY way to save Pentax (and to get Hoya themselves out of the current trouble for acquiring Pentax, as well). Otherwise, Pentax will inevitably die eventually (it just cannot survive in this cruel market). IF Hoya is just so mean NOT to invest, why not just decisively close down that dying camera division one-off and move on??
Afterall, I think there is nothing on Earth that one never invest (and so does he/she not have such a will, neither) but will eventually get a harvest, will one?