On Sun, 12 Feb 2006 19:27:02 -0000, E.R.N. Reed <[EMAIL PROTECTED]> wrote:
Joseph Tainter wrote:
(among other things)
3. The positive announcement a few days ago of new lenses forthcoming
was timed so that this negative announcement would not appear by itself
-- thereby precipitating more predictions of the imminent demise of
Pentax.
Several years on this list have convinced me that *nothing* can
forestall more predictions of the imminent demise of Pentax.
ERNR
Last week I had a good look at Pentax's results for the first nine months
of the present financial year. The company as a whole made money, as it
always does, though it lost money on the imaging division. However,
looking forward, even if the other divisions contribute nothing at all,
the company has enough cash IN THE BANK today to finance TEN YEARS of
imaging division losses. They are a conservatively-run company, and a
very long way indeed from demise.
Since the imaging division accounts for approximately half the company, it
would be extremely difficult to close it down (from all sorts of points of
view) so I think that that just isn't going to happen, even if they wanted
to. Instead, as we have seen, management is (belatedly) taking steps to
bring it back into profitability. There have been massive changes in the
past eighteen months, including closing operations, selling some companies
and buying others, closing its pension fund, making new distribution
arrangements in Europe, partnering with Samsung, totally re-vamping its
lens line, building a new lens factory, etc., etc..
Given all these changes, it is perhaps not surprising if management's eye
has seemed to be off the ball at times, especially as regards lens
availability.
It's also worth noting that the loss on the Imaging Division amounted to
less than 2% of net sales (for that division). Had it been 20%, there
might have been cause for concern, but 2% is close to break-even.
They're going to be under pressure for a while yet, and until the new lens
factory comes on stream I imagine that lens shortages will continue.
However, I confidently look forward to buying the D replacement when it
comes out (assuming my finances are up to it - there is no need to worry
about Pentax's).
John
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