Nikon reveals cost of Japan quake disaster

The Japanese earthquake cost Nikon more than £17m, financial results released yesterday show.

Nikon D3s


The Japanese earthquake cost Nikon more than £17m, financial results released yesterday show.

The camera giant posted an ‘extraordinary loss’ of 2,313 million yen (£17.6m) in its accounts for the year ended 31 March.

The firm said the loss caused by the 11 March disaster ‘includes expenses to restore the inventories to original state of 615 million yen and losses on abandonment and valuation of 237 million yen’.

The earthquake and tsunami forced Nikon to shut down one plant and ‘seven production companies’ in the Miyagi, Tochigi and Ibaraki prefectures.

The firm said its Japanese factories gradually resumed production by the end of March and are 'now reaching pre-disaster capacity’.

In a statement outlining the year ahead, Nikon’s Tokyo HQ added: ‘Although damages on our parts supply chain are substantial, both net sales and operating income are expected to increase with an assumption that the operations will normalise this fall or after.’

Nikon predicts that its sales will fall by 120 billion yen for the year to 31 March 2012, with a drop in operating income of 30 billion yen.

Nikon notched up consolidated sales of 887,512 million yen in the year to 31 March, an increase of 13% on the previous year.

The company reported solid sales of digital SLRs, in particular the D3100 and D700 DSLRs.

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