Olympus shares plunge 22% after it suddenly fires CEO

Discussion in 'Digital Cameras' started by David J Taylor, Oct 17, 2011.

  1. "Shares of Olympus Corporation have dropped for a second day after the
    company fired Michael Woodford, its first non-Japanese chief executive
    officer."

    See:

    http://www.bbc.co.uk/news/business-15330870

    What impact for photographers, if any, I wonder?

    David
     
    David J Taylor, Oct 17, 2011
    #1
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  2. David J Taylor

    Robert Coe Guest

    "Shares of Olympus Corporation have dropped for a second day after the
    : company fired Michael Woodford, its first non-Japanese chief executive
    : officer."
    :
    : See:
    :
    : http://www.bbc.co.uk/news/business-15330870
    :
    : What impact for photographers, if any, I wonder?

    Olympus has been drifting badly on Woodford's watch, has it not? Oly
    effectively abandons DSLRs to concentrate on mirrorless systems, only to be
    thrashed by Sony. Nikon stands in the wings, ready to pick the bones. Canon
    lurks out there, planning Who Knows Wnat. If you're a stockholder, good
    riddance to Woodford!

    So why does Oly's stock drop like a rock? Could it be that it'll cost them
    upwards of ¥100,000,000,000,000,000 to buy out Woodford's contract? ;^)

    Bob
     
    Robert Coe, Oct 18, 2011
    #2
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  3. David J Taylor

    RichA Guest

    Hey, maybe like Kodak, you'll have vultures buying 65 million shares
    on a Friday only to see them double the following Monday? A few made
    out like bandits on that one, especially the ones who spread the
    bankruptcy rumours.
     
    RichA, Oct 18, 2011
    #3
  4. David J Taylor

    Bruce Guest


    That's more than a little harsh. Woodford was fired because it
    appears he uncovered some dubious deals and then refused to sweep the
    evidence under the carpet.

    http://preview.tinyurl.com/68cczz5
    or:
    http://www.bloomberg.com/news/2011-...oodford-meets-with-u-k-fraud-prosecutors.html

    The problems at Olympus' camera division date back to the massive
    investment in Four Thirds, which has never paid off, and changes in
    the p+s market which mean that no-one makes any money there now.
    Olympus was formerly heavily dependent on p+s sales.

    Olympus carried on making Four Thirds DSLRs when hardly anyone was
    buying them. There are huge unsold stocks of models going right back
    to the E-1, and lenses too.

    Panasonic rescued Olympus with some very good sensors but developed
    Micro Four Thirds on its own. Since then, Olympus has been playing
    catch-up. Had Panasonic not allowed Olympus to join it in Micro Four
    Thirds, Olympus Camera would now be dead.

    Olympus is completely dependent on Panasonic for the manufacture of
    its sensors, and Panasonic seems to be limiting Olympus to 12 MP which
    will obviously restrict sales. The company no longer delivers profits
    from making cameras, which means that the much larger medical imaging
    division now almost completely dominates the company.

    All these problems pre-date Woodford's appointment as President of the
    company on April 1, 2011. He had only been CEO for two weeks when he
    was fired. That he has been unable to change much in his time at the
    top is quite possibly not his fault. The company may come to regret
    having dismissed him - the $3 billion loss in value of Olympus shares
    may be just the start.
     
    Bruce, Oct 18, 2011
    #4
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