"Leica will not be a small boutique for nostalgists"

The extraordinary general meeting for Leica ended a few hours ago.

After a loss of 15.5 million Euros for the financial year ending March

2005, they expect (or rather, hope) to lose only 13 million Euros this

year and to break even in the next financial year 2006/07. The

shareholders agreed to the capital-raising measures.

 

"The Board is aware that shareholder value has been destroyed through

mismanagement."

 

Leica will seek growth though new models in sport optics and digital

photography.

 

"I'm convinced that Leica can be made profitable," said Spichtig.

"Leica will not be a small boutique for nostalgists but rather

sensibly combine tradition with innovation, and thus grow."

Interesting. At their current prices, Leica can be at most a small boutique. I wonder how they'll increase sales without reducing prices.

A shame really ,its ostrich mentality. You are no longer able to manufacture quality goods in Germany to a certain extend this applies to Japan too. In fact most of the so called western world , here in our country ( Australia ) we no longer even have skilled tradesmen. Not enough factories to employ apprentices. And look at America it self the once industrial powerhouse no no longer even building television sets.

Do I need to go on.

"The Board is aware that shareholder value has been destroyed through mismanagement."

 

Where have they been? It is THEIR JOB job as board members to manage and direct the executives. Or are they incompetent?

 

Or perhaps they are like the boeard members of US companies who collect their $250,000 salery (General Motors), vote executives stock options that are miss-priced, raises, and bonuses who in return give the board members raises and stock.

 

Corporate governance stinks. Executives have figured a way to loot corporate treasuries and run the businesses like it was their own and not like they work for stockholders who own the company.

I'll belive it when I see it. Unless he means sacking the whole R system and making a digital M7, he don't have a prayer. Ain't no way Leica can make money sellin 6 grand 10 meg 1.3 crop backs cause the dudes who use the R junk wouldn't fill a VFW hall, and slappin Leica stickers and high prices on Japanise crapboxes ain't foolin nobody nomore. Been there done that as they say. This Spichtig dude better be pluggin his ears to all the old fart collectors and film-is-forever and autofocus-is-for-poosies crowd or he's gonna be standin ten foot behind Coenen in the unimployment line.

Manfred is correct about no tv's being built in America. It is a shame that many manufactured goods in our country have given way to cheap labor so the companies can point to their bottom line of profitablity. But the cruel hard facts of our modern society that demands reliable consumer goods at reasonable prices has dictated present conditions. Time marches on and the advancement of technology waits for no one, least of all anachronistic thinking in management.

John yes but I think its also unfair competition with a Chines currency way above the value it should be. Our country here used to ride on the sheeps back now its just a hole in the ground ( mining ) Almost all consumer goods are import and the polititians are telling us to relax

and enjoy. Look at the trade America has with China are Americans selling goods there worthwile? Sure they buy raw materials but one day the mines will be empty. No more skilled poeple to take up the slack.

I am lamenting I know. Leica will be going it will move out of Germany

for sure. Hasselblad is gone and its not just the demise of film.

At one of the recent local High School Graduation events I got dragged to here (USA); The high school Physics teacher was informally telling my neighbors daughter : <i>Do something with your life that will benefit society; such as academic research; not ruin the environment like manufacturing"</i> In the USA; many folks believe manufacturing is evil; and those who work in this sector are all "ruining society". Teachers preach this BS too. Maybe a more honorable profession is a lawyer; just sue for anything; try to win the big lottery ticket; to buy a new yacht:) In the USA health care costs and lawsuits are the biggest growing monkeys on a businesses back. Now most all goods are not made in the USA anymore; manufacturing is "not in vogue" anymore; and very very expensive. It was expensive decades ago too; but it least manufacturing was something then held in a better respect. <BR><BR>One wonders if Leicas management has any chaps like the Enron or MCI-Worldcom czars who play dumb but squirelled away a few pennies? There was one decade awhile pack that Leica did even release any new lenses at all; and just watched the store.

Exactly Kelly same here, and for you Peter I do own and use the stuff in your photo that is the 280 the 100 Apo and the R9 mine is the gray top.

the 50 too and I just got this bargain I am told ,the 35 Elmarit.

Some M stuff too the 6 the 3 even some SM more than I can list here.

Not being a pro photog far too much perhaps I am nuts but I do enjoy the stuff. Sorry can't post a photo I just dont use a digital.

And something else Peter Hasselblad went to the moon but never made a lens,not even now.

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Leica will seek growth through new models in sports optics and digital photography.

 

Sports optics, thats binoculars, distance range finders and spotting scopes boys, the Leica line that that has kept the company from complete disaster,and has been a good profit making division. They could just ditch the troublesome and redundant fim camera line and do what they do best, make top class sports optics, following the line of though from Spichtigs final comment in the thread header.

Peter,

 

thought your 09:38 a.m.was a pic of farm machinery? Now you say its camera stuff.

 

PS the 9:51 is tres grouse!!! nice

 

Jeremy, you cirtainly is a man widda mission, go get um Pal!!!

This seems to raise as many questions as it gives answers.

 

"The shareholders agreed to the capital-raising measures" - did all the shareholders agree or just the big two who would thus have total control between them ?

 

The Board is aware that shareholders value has been eroded through mismanagement" - when do we see blood seeping under the boardroom door ?

 

Does this mean that the traditional core of the business - film based products - will continue as it is or will it be reduced to a repairing "rump" with a few special edition type promotions ?

 

No mention of the possible outsourcing of manufacture to less high cost locations.

 

The press release could either be enlightening or hilarious.

 

At least the company will try and continue but this seems to me to be a stay of execution rather than a cure.

Leica is just about pulling itself round if it meets its next two year targets. Germany of all the EEC countries is gradually pulling out of recession on the back of exports. If they left the Euro and restored the D-mark they would certainly come out of recession. Japan and Taiwan are beginning to price themselves too high. China is the serious competition but Leica could source some product there. If China breaks from the US dollar they will not look so rosy. Leica has an incredibly strong brand name - much stronger than Zeiss almost ever was.

It's extremely funny to hear someone claiming about the "value" of Chinese currency - everyone knows that Japan and China are the two biggest creditors to the United States, I figure if the rate of Chinese Yuan against USD goes up to 1:1, then all in a sudden US owes China almost nothing!

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Sorry, but this is rather like robbing a bank!

Funny that, thought UK was in the EU. Just for once not in recession (not a lot to do with god-one Brown) and not in the euro either.That bit may be right.

EU voting powers correspond to country population: small countries dominated specifically by Germany. EU's governing concept was bad from the beginning because it lacked the equivalent of a US Senate and was not representative of cultures/citizens. EU is now the Living Dead.

 

Germany doesn't have an internationally viable banking system, the way France and Netherlands and US do. This means EU will inevitably be controlled substantially by non-EU or secondarily EU banking systems.

John - not being jingoistic but the UK is part of the EU (although thankfully not the Euro) and has one of the world's major banking systems. Also inherent in your thinking is that Germany controls the EU - it is much more complicated than that.

 

If you want to deal with the problems of the EU - how long have you got ?