From Bloomberg:

Leica Faces Plummeting U.S. Sales After Terrorist Attacks 2001-09-27 10:58 (New York)
Leica Faces Plummeting U.S. Sales After Terrorist Attacks
Solms, Germany, Sept. 27 (Bloomberg) -- Leica Camera AG, a German camera producer, said its sales have plummeted after the attacks in the U.S., and that it sees no reason yet to cut its earnings target as it introduces a cost-cutting program. The company, which generates sales worth about 12 million euros ($11 million) in New York City's Manhattan borough alone each year, said U.S. sales for September are 2 million euros lower than planned, according to a faxed statement. Leica posted sales of 157.8 million euros last year. ``We've authorized a program to compensate for threatening sales losses through cost-saving measures and delays on investments,'' said Chief Executive Hanns-Peter Cohn. Leica is trying to boost earnings after posting losses for two straight years through fiscal 1999. Cohn has slashed costs, fired workers and gained France's Hermes International SCA as an investor. The shares rose as much as 80 cents, or 13 percent, to 6.80 euros. Leica has fallen 35 percent this year while the mid-cap CDAX index has dropped 33 percent. --Patrick Donahue in the Frankfurt newsroom (49-69) 92041 224 or at pdonahue1@bloomberg.net /djh

-- Russell Brooks (russell@ebrooks.org), September 28, 2001

Answers

I think if Leica is to survive, it should not delay investment in the digital camera business, which might bring it new customers ... When a M6D?

-- Angelique (abischop@earthlink.net), September 28, 2001.

Does this mean Leica will offer better rebate programs on new equipment? Last year in the UK if you bought a body and 2 lens you got a £250 cash back. This year its just £150. Will the prices come down further for xmas to entice?

-- sparkie (sparkie@mailcity.com), September 28, 2001.

Its amazing to think that Leica sell $11Million worth of goods in NY alone! Everyone must own one!

-- Jason (jason@futurafish.com), September 28, 2001.

11 Million dollara. Isn't that about two Ms, an R, and a couple of Apo-Asph-Summiluxacrons. Oh yeah, and one hard case.

-- Wilhelm (bmitch@home.com), September 28, 2001.

For those of you in Europe and abroad, this is nothing new. Airlines (in particular) are seening a setback because of the recent events, as well as many stock in the tech industry. Hopefully it will just be a 'momentary' glitch and things will return to some sense of normallcy. And I think it is safe to say (fortunately or not, depending on your outlook), that in a time of financial crisis, seeing Leica plunge headlong into digital, with all the R&D money that would entail, ain't goin' to happen. As with the airlines, for many companies it is going to be a year of holding tight and seeing how this all pans out...

-- Bob Todrick (bobtodrick@yahoo.com), September 28, 2001.

I would guess that $11 million sold in New York would include Leica dealers sales that are mail order and sent around the country--like to me who is 300 miles away from New York.

-- Steve leHuray (icommag@toad.net), September 28, 2001.

Leica is into digital in partnership with Panasonic, remember? A professional level rangefinder digital compatible with the current M-lenses and with the precision and quality that Leicaphiles would require and pay up for is many years off.

Angelique - tell me would you be prepared to pay $3500 now (when a recession is probably on its way) for a digital M (if there was one available)?

-- Robin Smith (smith_robin@hotmail.com), September 28, 2001.

i hope all this cost cutting will not involve quality of build and manufacturing..they can cut out the nice brochures (i read the leica catalogue everynight) that i can live with, but not on the lenses and bodies. i have noticed with other top brands who have cemented their position in the marketplace, then their quality goes down by way of cheaper overseas production. not point worrying about something that hasnt happened but just hoping it doesn't. imagine a chromed plastic shutter dial - sexy!

-- sparkie (sparkie@mailcity.com), September 28, 2001.

Wilhelm, by my estimation you'd be able to squeeze in a UV filter, instead of the hard case. A second hand one would be your best bet. But then again I'm in England. They really like to bend us over and...you can imagine the rest.

-- sparkie (sparkie@mailcity.com), September 28, 2001.

I imagine that the connection to the terrorist attack is by way of finances. The market dropped quite a bit, which would make people think twice about how much of their cash reserves should be earmarked for luxuries. I think many of us don't feel too rich this month. And it's harder to think about indulging oneself so soon after such a tragedy. I'm sure things will recover, and Leica will be OK.

-- Bob Fleischman (RFXMAIL@prodigy.net), September 29, 2001.

Maybe we'll see a dramatic "Get America Buying Leicas Again" sale like what the airlines have been doing. I can picture it now: Summicrons as low as $25, Noctiluxes as low as $100!

-- Buzz Andersen (buzz@scifihifi.com), September 29, 2001.

It is an absolute sure thing that Leica cameras and lenses will now be sold at huge discounts! In the last 8 months I bought a Leica R plus 6 lenses/extenders. Just as it always rains after I wash my car, prices always drop AFTER I buy an item (especially an expensive item). Have your checkbooks ready. :-) LB

-- Luther Berry (lberrytx@aol.com), September 29, 2001.

Prices had already dropped before 9/11. If you combine a Leica day with a $200 rebate, it is a 30% discount on a 50mm Summicron ... Second hand Leica on ebay sell for much less these days where you can get a recent M6 for 1100 to 1300.

Now, I am not ready to buy a $3500 M digital should it exist... but I am not sure there need to be a $1500 premium over a non-digital M6 ... but may be I am wrong!

-- Angelique (abischop@earthlink.net), September 30, 2001.

Actually I dont think the prices will drop too much on the normal M series. I anticipate less new lens designs over the next 2 years due to research cutbacks. Also I expect a "50 years of M" with a black paint M6 (actually I would like to see a re-release of the M3 body). Also I would calculate what they make on the R series and think about dumping it and concentrate on the M. I would also introduce a "cheap" M body like the old CL to take advantage of the rangefinder craze. Maybe drop prices on the 35 and 50 summicrons to get people into the system and then keep the prices of the other lenses high to "trap" people into spending money once they get the Leica virus.
Hey, let's be realistic - the market cap of Leica is only 29 mio. Euros and they trade at a p/e of 48.5. Most of that "high" valuation is due to the brand name I am sure. The Hermes stake is a good start but I think they need to become more agressive in the new rangefinder craze. If I had a buy-out fund I would buy Leica and turn it around - but with respect to the traditions and history, i.e. dont change the M series but lever off it.

-- Russell Brooks (russell@ebrooks.org), October 01, 2001.

Depending on the size, resolution and handling, I probably would buy a $3500 digital M camera.

-- Josh Root (rootj@att.net), October 01, 2001.

I would certainly not buy a digital Leica, for any price. In fact, the whole idea is ridiculous and contrary to the spirit of why people buy Leica in the first place.

-- Peter Hughes (ravenart@pacbell.net), October 01, 2001.

A digital Leica already exists: it's called a Canon D30 with a Novoflex adapter to take R lenses.

-- ray tai (razerx@netvigator.com), October 01, 2001.

Although I think it's unlikely to ever happen, I'd certainly love to have a digital manual rangefinder camera, with good auto exposure, to take my M lenses. But I think the next generation of small prosumer digital cameras will solve the shutter lag problem, which is the main drawback of these machines. I believe the new Nikon 5000 is comparable to the digital SLR's in speed. I can't wait. Why go to all the trouble of scanning slide if you can have a digital file straight out of the camera.

-- rob (rob@robertappleby.com), October 01, 2001.

I don't think prices will drop on new Leicas either. There are currency fluctuations which cause price shifts, but I don't think Leica are in the business of reducing their prices. They have not really done this in the past - it devalues their product. Secondhand Leicas may get less expensive, but I doubt the collectors' market will change that much either. The various models do fluctuate in their attraction to buyers s/h, but this seems to be related to trends unconnected with the economy.

I also think that much of the market for M-Leicas is not really a digital one - they appeal to a "Tri-X type" of photographer. The other day I was told proudly by someone that my Leica and slide film were "completely out of date". When presented with a dogmatic statement like that from someone who you know knows very little about photography it is always rather difficult to explain why you bother with it all!

-- Robin Smith (smith_robin@hotmail.com), October 01, 2001.

I agree with Peter Hughes. The idea of a digital M series camera is retarded. I paint and work with digital tools every day of my professional working life. Digital and silver are two totally different mediums and so far digital CANNOT capture the range of tones film can. Not only that, when the batteries die so does your ability to shoot! If Leica are smart, they will never digitize an M.

I read somewhere once, "I'll still be shooting with my M series Leica long after your Nikon F5 has been re-cycled into plastic bags".

That sums it up for me.

Regards

Wayne

-- Wayne Haag (wayne@wetafx.co.nz), October 02, 2001.

Wayne, Peter, why the hostility, though, that's what I don't get. Why is it retarded or grotesque?

Eventually, film will no longer be around. Maybe not soon, but eventually for sure. If companies don't develop the technology by putting out products, which by definition aren't perfect, it'll never improve. Where's the advantage in that?

I look forward to doing without film and having a high capacity, fast and fast to edit digital camera. When I shoot 200 rolls of film, both neg and slide, for a story, it's a major pain in the ass going through them all, mounting and scanning them. And storing them, brushing the dust off, etc. I agree right now the digital technology isn't mature, but when it is it'll be far more convenient than film.

Anyway, it's a futile argument, forward-looking companies will develop and the dinosaurs will die out. And no doubt Leica will be one of the latter.

-- rob (rob@robertappleby.com), October 02, 2001.

"...dinosaurs will die...". Why the hostility, though, Rob? Just kidding:-)

I do agree with you in that handling film is a real pain, and digital offers very great improvements and ease in this department. I look forward to the day when projected digital images will be as bright, crisp and large as anything on film today-because slide projection is my particular thing...

And I look forward to the digital camera that offers some of that special handling feel of a Leica. Or of a Nikon F5 (ok, ok, Nikon D1X) or a Hasselblad. Or a Rolleiflex F. And I cling desparately to the notion that good handling and feel=happier photographer=better pictures. IMHO.

-- Mani Sitaraman (bindumani@pacific.net.sg), October 02, 2001.

Desperately, I meen. I no hou too spel.

-- Mani Sitaraman (bindumani@pacific.net.sg), October 02, 2001.

With the renewed interest in "human intelligence" the sales of Minox spy camera may increase.

-- martin tai (martin.tai@capcanada.com), October 07, 2001.