Leica in financial crisis, banks cut credit

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 =8010
million (approx $13 million). Last year it reported a loss of =801.6
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/0502/05...ialtrouble.asp

wrote in
oups.com:


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/0502/05...cialtrouble.as
p



Old news.

--

Bill

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.

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.

--
http://www.chapelhillnoir.com
home of The Camera-ist's Manifesto
The Improved Links Pages are at
http://www.chapelhillnoir.com/links/mlinks00.html
A sample chapter from "Haight-Ashbury" is at
http://www.chapelhillnoir.com/writ/hait/hatitl.html

wrote in message
ups.com...
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.

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.

--
http://www.chapelhillnoir.com
home of The Camera-ist's Manifesto
The Improved Links Pages are at
http://www.chapelhillnoir.com/links/mlinks00.html
A sample chapter from "Haight-Ashbury" is at
http://www.chapelhillnoir.com/writ/hait/hatitl.html

wrote in message
ups.com...
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.

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)?

wrote in message
ups.com...
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.


all they have to do is price their kit more sensibly.

wrote in message
ups.com...
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.


all they have to do is price their kit more sensibly.

bmoag wrote:
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.

They are seperate companies.

http://www.leica.com/

--
-- r.p.e.35mm user resource: http://www.aliasimages.com/rpe35mmur.htm
-- r.p.d.slr-systems: http://www.aliasimages.com/rpdslrsysur.htm
-- [SI] gallery & rulz: http://www.pbase.com/shootin
-- e-meil: there's no such thing as a FreeLunch.

bmoag wrote:
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.

They are seperate companies.

http://www.leica.com/

--
-- r.p.e.35mm user resource: http://www.aliasimages.com/rpe35mmur.htm
-- r.p.d.slr-systems: http://www.aliasimages.com/rpdslrsysur.htm
-- [SI] gallery & rulz: http://www.pbase.com/shootin
-- e-meil: there's no such thing as a FreeLunch.