Leica Camera AG reports 28% sales increase in the first half of fiscal year 2011/12, sales and earnings forecast increased

Today Leica Camera AG announced increased sales in the first half of fiscal year 2011/12. Sales and earnings forecasts for the remaining of the years were raised:

Leica Camera AG, Solms, consistently pursues its course of innovation and growth in the first half of the current fiscal year 2011/2012. Following the record results in fiscal year 2010/2011, the Company in the first half of the current fiscal year has increased sales of cameras, lenses and accessories by 27.9 %, from € 110.8 million to € 141.7 million, as compared to the corresponding prior year period. At € 33.1 million the Group’s operating result (EBIT) is € 19.2 million higher than in the corresponding prior year period (€ 13.9 million).

Each product group accounts for approximately 50 % of the sales growth, with the Photo product group reporting a sales increase from € 87.7 million in the first half of fiscal year 2010/2011 to € 115.6 million, corresponding to a 31.8 % rise. In the Sport optics product group, sales rose from € 10.8 million in the first half of the last fiscal year to € 14.0 million, or by 29.5 %.

»The business of Leica Camera AG continues to develop very favorably, evidencing that Leica was on solid ground in resolving to focus on new, innovative products and to be present in the market with a comprehensive fully digital camera portfolio«, says Alfred Schopf, Chairman of the Board of Management of Leica Camera AG. »It continues to be our aim to comply with the high order inflow resulting from the strong demand and thereby to achieve full satisfaction of our customers all around the world. With more than 30 Page 2 of 2 Reprints free of charge – Please send voucher copy employees newly recruited in manufacturing and the expansion of production capacities, Leica is working at full speed to achieve improvements in delivery periods and reduce the high order backlog. In the process, it remains our axiom to retain the outstanding product quality customers expect from us.«

In the first half of fiscal year 2011/2012, the Company’s success drivers »Made in Germany« were the Leica M9 rangefinder camera, the S2 professional system, as well as the Leica X1 compact camera. The Leica compact camera models V-Lux 20, V-Lux 2 and D-Lux 5 also made essential contributions to the positive overall development. Further success drivers are the Rangemaster and Televid product lines in the Leica Sport optics product group.

Board of Management expects significant sales and profit increases

On the strength of this extremely favorable development, the Board of Management increases the sales and earnings forecast for the whole of the current fiscal year. »Hitherto we had expected for the Group a sales growth of 3 % to 5 % and EBIT of more than € 20 million for fiscal year 2011/2012«, said Andreas Lobejäger, the member of Leica Camera AG’s Board of Management responsible for finance. »The Board now expects sales in the current fiscal year to increase by at least 10 % on the prior fiscal year (€ 248.8 million). As to EBIT, we now expect an increase of around 20 % on the prior year figure (€ 41.5 million).«

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  • They must be making money hand over fist! This Kaufmann guy is a force to be reckond with. Although I don’t have much respect for they way they do business, I cannot deny its success as a marketing targeting, branding machine.

    Pentax under Ricoh will hopefully follow a similar path and identify the people who want their cameras and lenses, instead of trying to get EVERYONE to like their cameras.

    • Nobody Special

      Leica/Kaufmanns’ ‘success’ is due to a strange Leica philosophy: Take forever and a day to bring your most famous product line into the modern era called digital.

      You know, make it relevant. Then all the loyalists who have been waiting PATIENTLY for all those years can finally reach into their pockets and shell out the cash, and many say overpriced M bodies, including the new users who may have looked upon it as a novelty. The marketing was about 75% media coverage over the facts above – ‘Leica actually moves forward!’

      The M camera is it’s own branding machine and it’s been dumb-luck combined with feet-in-the-mud thinking that has kept them alive. Beware of ‘Kaufmanns’ brain’ – he isn’t all that far away from the past. As long as the lenses keep paving the way (hopefully) they’ll keep moving forward. The east is where they will make the $$$$.

  • > in the first half of the current fiscal year has increased sales of cameras, lenses and accessories by 27.9 %

    I’m not really surprised to read this – Leica have certainly delivered in terms of stock inventory lately. At least in my recent experience, the waiting period for some desirable lenses has reduced considerably. This is a real indication that Leica has made good on past PR reports of ramping up internal volume – at least for now. I for one have been glad about it (I could acquire some lenses earlier that my expectation). This is a credit to the management who set the direction, but probably more credit to the production staff on the ground who mustered the drive to get behind the management to realise this inventory ramp-up. It’s great to see Leica moving forward & I hope it continues. I feel the next 2-5 years will be a golden time for Leica. Go for it.

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