This is to advise you of the latest situations of submersion
at Nikon (Thailand) Co., Ltd., a consolidated manufacturing
subsidiary of Nikon Corporation in the Rojana Industrial Park
in Ayutthaya Province located in Central Thailand.
Damages
The 1st floor of all buildings at the premises continues
to be submerged. Operation of the factory has been
suspended since October 6. No human damage is reported.
As for the water level, the Rojana Industrial Park, where
Nikon (Thailand) Co., Ltd. is located, announces that it
has lowered by about 40 centimeters from the highest
period at measuring points in the Park.
Estimated impact to our business performance
The impact of the flood on our business performance for
the financial period ending March 31, 2012 has been
estimated, within the scope of our current findings and
understanding, to push down net sales by 65 billion yen
and operational income by 25 billion yen. Our estimation
of the financial results for the Year Ending March 31,
2012, announced at 15:00 JST today, has reflected these
negative factors.
Recovery
We have set up support and recovery system under the
Emergency Headquarters for Disaster Control headed by
president and will endeavor to restart the operation as
early as possible. Every possible measure is now under
preparation to resume production by means as purchase of
new manufacturing equipment, review of production
allocation among Nikon group companies, etc. As for
drainage from the industrial park, the Rojana Industrial
Park authority explained to us that they expect water
pumping-out to start in the beginning of November and
complete by the end of November.
We are planning to start production at other Nikon group
manufacturing plants and our partner factories in
Thailand one after another from December 2011. Production
will partially resume from January 2012 at Nikon
(Thailand) Co., Ltd., and production of digital SLR and
interchangeable lenses will return to the normal level by
the end of March 2012.
Nikon Corporation specializes in the design, manufacturing and marketing of photographic and optic equipments. Net sales break down by family of products as follows:
- precision industrial equipments (39.1%): scanners, LCD steppers, lithography systems, etc.;
- imaging equipments (33%): especially cameras and camcorders;
- diagnostic instruments, microscopes and retinal imaging devices (13.6%);
- optical components (7.6%);
- other (6.7%): industrial measuring instruments, ophthalmic lenses, binoculars, telescopes, magnifiers, etc.
Net sales break down geographically as follows: Japan (18.2%), China (28.4%), the United States (24%), Europe (13.4%) and other (16%).