Nikon Warns of ‘Extraordinary Losses’ Due to COVID-19

Nikon Corp. published two financial statements today. The first was a warning to investors—a “recognition of extraordinary losses” caused by the COVID-19 pandemic. The second was a revised FY2020 financial forecast that discloses the expected impact on profit and revenue for the fiscal year that ended March 31st. “Nikon Corporation expects to post extraordinary losses […]

Nikon Warns of ‘Extraordinary Losses’ Due to COVID-19

Nikon Corp. published two financial statements today. The first was a warning to investors—a “recognition of extraordinary losses” caused by the COVID-19 pandemic. The second was a revised FY2020 financial forecast that discloses the expected impact on profit and revenue for the fiscal year that ended March 31st.

“Nikon Corporation expects to post extraordinary losses and to reverse a part of deferred tax assets in its non-consolidated financial statements,” reads the statement. “Using the future plan that reflects the impact and more caused by the spread of COVID-19 to business activities, the Company has assessed an indication that fixed assets may be impaired, performed valuation of financial assets, and examined the recoverability of deferred tax assets.”

As with a previous statement of this nature, it’s important to note that the term “extraordinary” means something different in financial disclosure terms than it does in colloquial terms. While Nikon’s profit and revenue losses are expected to be large—everyone’s are—this statement is simply a note to investors that the losses will be extra-ordinary, as in “caused by events that were unusual and infrequent in nature.”

In a world shut down by COVID-19, a “recognition of extraordinary losses” is even less “extraordinary” than usual. It’s downright expected. As a result, Nikon is announcing plans to re-asses the value of its assets so that it can decrease its tax burden.

You can read the full statement below:

A clearer picture of expected losses is presented in Nikon’s updated FY2020 forecast for the fiscal year that ended March 31st, 2020, which was also released earlier today. In this document, Nikon revised its forecast published on February 6th, 2020 to reflect the “impairment losses” that were caused by the “impact … of COVID-19 on business operations.”

Due in large part to expected impairment losses of 11.1 billion yen (~$103.4 million) total, 7.5 billion yen (~$69.8 million) of that in the Imaging Business Division, Nikon dropped its forecasted revenue by 4.7% and forecasted operating profit by a whopping 70% compared to the February 6th disclosure.

The new revenue and profit numbers they are forecasting—and which we should see officially in about two weeks—are expected to represent a 16.6% drop in revenue and a 92.7% drop in operating profit compared FY2019 results posed March 31st of 2019.

You can read this full document below:

None of this is unexpected, but as we monitor the impact of the COVID-19 pandemic on the camera companies we know and love, it gives us a sense of the hole that they will need to dig themselves out of when this is all over.

Nikon is saying that the pandemic has caused the value of the Imaging Division to drop by almost $70 million. That includes fixed assets like “property, plant and equipment,” as well as intangible assets, which Nikon did not describe in detail, but can include everything from brand recognition to intellectual property and trademarks.

By disclosing these “impairment losses,” the company will be able to keep more tax money in its coffers. A move that will help investors swallow what will no doubt be a brutal end-of-year report, which is scheduled to be published on May 28th.


Image credits: Header photo by Joe Shlabotnik, CC-BY-SA 2.0

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Photographers Turn Their Homes Into Cameras to Capture Pandemic Life

Billions of people around the world have had their lives turned upside down by the COVID-19 pandemic, and Brazilian photographer Bruno Alencastro recently came up with an interesting concept for capturing what life is like during these difficult times. He and other photographers turned their homes into camera obscuras and created portraits in their isolated […]

Photographers Turn Their Homes Into Cameras to Capture Pandemic Life

Billions of people around the world have had their lives turned upside down by the COVID-19 pandemic, and Brazilian photographer Bruno Alencastro recently came up with an interesting concept for capturing what life is like during these difficult times. He and other photographers turned their homes into camera obscuras and created portraits in their isolated upside-down worlds.

Bruno Alencastro (left) and Greyce Vargas pose for a portrait at their home in Rio de Janeiro, Brazil.

“The history of photography is directly related to the point of view of a window,” the Rio de Janeiro-based Alencastro says. “It was from there that, in 1826, Niepce took the first photograph in history. 8 hours of exposure, there, from the point of view of the window of his house in the countryside of France!

“Nowadays, the window starts to represent the border and the abyss between the outside and the inside world. Freedom and confinement.”

Felipe Martini (right, 32) and Rafaela di Giorgio (31) pose for a portrait at their home in Rio de Janeiro, Brazil. The couple had to cancel their wedding and a move to Spain due to COVID19 pandemic.

After turning his own home into a camera obscura by completely blocking off all light except for a single small pinhole, Alencastro reached out to other photographers and invited them to join his project. Through video calls and instant messages, Alencastro shared his thoughts and tips on both technical details as well as the message for each photo.

Clarissa Pont (right) poses for a portrait with her kids, Sebastiao and Mathias inside their house in Porto Alegre, Brazil. The picture was taken by Clarissa’s husband Eduardo Seidl, who is a photographer and a university teacher.
Mathias Rocha (8) and Lucia Rocha (right, 6) pose for a portrait at their home in Tres Coroas, Brazil. The portrait was taken by their father Pedro Rocha and was done in a tent on the high grass next to their house. Having kids at home during lockdown can be very difficult for parents, luckily, Pedro and his children leave next to the wilderness and they can explore nature with little human contact.
Leonardo Savaris (left) poses for a portrait with his wife Michele and son Liam at their house in Novo Hamburgo, Brazil. The image reflects their current daily routine, which consists of keeping their son distracted and entertained while living in an apartment building.
Caroline Muller (24) poses for a portrait at her house in Sao Leopoldo, Brazil. Caroline is a photographer and dancer and it is home quarantined with her boyfriend that is a medicine student and works on the frontline of the COVID19 treatment in his city.

“Symbolically, what we see projected is a world upside down, just like the chaos that we follow around the world”, the photographer says.

Beatriz Grieco (21), a cinema student, poses for a portrait at her home in Niteroi, Brazil. Beatriz is isolated in her house with her family, she is afraid of leaving the house, especially to no put at risk her relatives. Her quarantine routine is to study, watch TV, and to video chat with her work and friends.
Sofia Wolffenbutel (13) poses for a portrait at her house in Florianopolis, Brazil. The image was taken by Sofia’s father, Ricardo Wolffenbutel that is a freelance photogapher and had his work affected by the COVID-19 pandemic.
Eveline Medeiros (25) poses for a portrait at her house in Cachoeirinha, Brazil. Eveline is a photographer and a holistic therapist, she lives with her elderly parents. Eveline and her parents belong to the high-risk group if they contract COVID-19 disease, that is why she has been on lockdown inside her house and avoiding any other contact with others.
Ursula Jahn (26) poses for a portrait in her home in Montenegro, Brazil. Ursula is a visual artist and had all of her job appointments canceled due to the COVID-19 pandemic.
Guilherme Santos (center), his wife Gabriela Thomaz (right) and their son Joaquin pose for a portrait at their home in Porto Alegre, Brazil. Guilherme is a freelance photographer and Gabriela a Yoga teacher. They all wait for the lockdown measures to end, so they can return to their normal routines.
Josue Braun (36) poses for a portrait at his home in Feliz, Brazil. Josue is a freelance photographer and musician, with the COVID-19 crisis he lost all his source of income.

You can find more of Alencastro’s on his Instagram.

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