Last week rumors circulated that on the back of a series of disastrous financial results, Olympus was about to announce that it would be closing its imaging division, ending its production of cameras and lenses. The Japanese manufacturer has since responded to these rumors.
As reported by Fstoppers a few days ago, Olympus’s results have shown a 17% year-on-year decline in revenue and significant operating losses, leading to rumors that the camera branch of its business could be shuttered by the middle of 2020. Speaking to Sina Finance News and reported by 43Rumors, Olympus has responded to questions regarding its plans stating that they will “continue to work on the improvement of profitability and efficiency” (Google translation from Japanese) of both its imaging and scientific businesses. This is essentially a very polite denial.
When asked whether it is planning to sell either of these businesses, Olympus stated that more information would be revealed as part of the earnings report for the next quarter. Olympus has previously proven its ability to ride out a storm after three-quarters of the company’s value was wiped out by an accounting scandal that dates back to 2011, and after paying fines of $646 million to U.S. authorities in 2016.
Those predicting the demise of Olympus cameras might want to wait and see what this report brings. Given the size of the business, it seems unlikely that Olympus would bring a halt to production or start seeking a sale, or at least not any time. Furthermore, Olympus would be far from alone in seeking to restructure its company according to the global decline in camera sales. Nikon has recently announced that, following some dreadful year-on-year figures reported in its recent quarterly results, it will be implementing some major changes to the company, almost certainly looking to save costs wherever possible, perhaps scaling down production, and cut research and development budgets.
What does the future hold? Leave your thoughts in the comments below.