Leica in financial crisis, banks cut credit

Discussion in '35mm Cameras' started by casioculture, Feb 26, 2005.

  1. casioculture

    casioculture Guest

    German website, Spiegel Online, has reported that Leica is in financial
    crisis after many banks cut its credit lines following an announcement
    last week, which said it stood to lose half its operating capital. The
    company, which introduced the first 35mm still camera in 1924, is also
    expected to close the financial year with an operating loss of €10
    million (approx $13 million). Last year it reported a loss of €1.6
    million (approx $2.1 million). Shareholders will hold a meeting on May
    31 to discuss the future of the company. Spiegel Online says that Leica
    has missed the boat where digital photography is concerned and it is
    also suffering due to the low rate of the US dollar versus the Euro.

    Press Release:

    Following the ad hoc announcement of Leica Camera AG, Solms, of
    February 17, 2005, stating that the Company expects a loss of half of
    its registered share capital in March 2005, the banks have partially
    terminated their credit lines. The remaining lines still cover the
    current liquidity requirements. The Company's Board of Management has
    entered into negotiations with the banks on a solution that will carry
    the Company until the time of its Extraordinary General Meeting on May
    31, 2005, at which capital measures are to be proposed to the
    shareholders.

    Press Release:

    Leica Camera AG, Solms, expects the existence of a loss in the amount
    of half of its registered share capital in March 2005. The Company's
    Board of Management will make a corresponding announcement according to
    section 92 (1) of the German Stock Corporation Law (AktG) at a General
    Meeting to be held on May 31, 2005.

    Concurrently, the Board of Management prepares a turnaround strategy.
    It will propose at the General Meeting on May 31, 2005 that capital
    measures be taken. In connection with such measures audits are
    conducted at present. The measures proposed will be announced and
    published in the designated journals at the time of the convening of
    the General Meeting and the announcement of its agenda.

    http://www.dpreview.com/news/0502/05022203leica_financialtrouble.asp
     
    casioculture, Feb 26, 2005
    #1
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  2. wrote in
    Old news.
     
    Woodchuck Bill, Feb 26, 2005
    #2
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  3. casioculture

    aa1919 Guest

    if leica would just produce lenses with canon & nikon mounts, then the
    company would have a future. or, say lisence with sigma or tamron &
    produce af lenses with nikon or canon mounts. problem solved.
     
    aa1919, Feb 27, 2005
    #3
  4. casioculture

    Tony Guest

    Why would anyone who can buy Canon "L" lenses buy Leica glass? I suppose a
    few would do it based on the snob appeal factor, but probably not enough to
    pay to cost of adapting the mount - and certainly not enough to pay for the
    complete technology overhaul necessary to produce acceptable AF motors.
    Leica has based their entire product line on not keeping up with the
    times. I think it is far to late for them to change anything now - ie, the
    digital back for the Leice SLR. I imagine that is the reason the banks cut
    them off. They know a money pit when they see one.
     
    Tony, Feb 27, 2005
    #4
  5. casioculture

    bmoag Guest

    Leica is not just a consumer camera company. It has a much more complex
    corporate and financial structure. Its biggest business is medical and
    scientific instruments where it is a market leader and does not price itself
    at an astronomical premium compared to the competition. It is not clear that
    the camera division can survive in its traditional form, although this has
    been thought since the early 1970s and Leica has survived.

    The worst thing that could happen would be if the name simply becomes a
    leasable franchise logo like RCA, General Electric and IBM consumer
    products. Because of the cache of the Leica name and its association with
    outrageous prices it is not at all certain that Leica branded lenses can
    sell in adequate quantities in Nikon/Canon etc mounts. How many 50mm lenses
    can be sold worldwide at a $2000 price point (that is the price for Leica's
    most recent M mount offering)?
     
    bmoag, Feb 27, 2005
    #5
  6. casioculture

    ian lincoln Guest


    all they have to do is price their kit more sensibly.
     
    ian lincoln, Feb 27, 2005
    #6
  7. casioculture

    Alan Browne Guest

    They are seperate companies.

    http://www.leica.com/
     
    Alan Browne, Feb 27, 2005
    #7
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