Nikon 2002 Annual Report Download - page 14

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SPORTER I 8x36DCF
Outdoor leisure use binoculars pro-
viding enhanced visibility
Field Station GF-300N Series*
Reflectorless surveying system
*Pulse Laser Station NPL-821 in overseas
markets
PROGUE NEXIA
Ophthalmic frames using the
world’s first earpiece tips made
from shape-memory plastic
Other Sales in this segment rose 10.5% to ¥48.2
billion, while operating income declined 8.8%
to ¥1.6 billion.
Despite lower sales of optical communica-
tions-related components as a result of the
general downturn in IT markets, sales
increased at the Customized Products Division
as Nikon commenced full-scale supply of opti-
cal systems for satellite sensor applications.
The division is focusing its efforts on the opti-
cal communications field, where its gain flat-
tening filters have been well received.
In binocular and telescope products, whose
operations were spun off into an independent
subsidiary in May 2001, sales grew as com-
pact binoculars designed for sporting events
and outdoor leisure use performed well in the
American market. The sales outlook in over-
seas markets remains favorable in this seg-
ment, and new model introductions are
planned for the coming year.
Sales of surveying instruments were nega-
tively impacted by the downturn in related mar-
kets, despite increased marketing efforts fol-
lowing the addition of new production capacity.
Nikon projects that this market is likely to
remain depressed in the short term, but
expects sales to recover in the second half of
the coming year on the back of new product
launches.
In ophthalmic lenses, frames and sunglass-
es, poor market conditions persisted. Although
Nikon posted higher sales of high-value-added
ophthalmic lenses, such as progressive addi-
tion lenses, extensive retail discounting within
the market for ophthalmic frames and sun-
glasses depressed overall results. Nikon plans
to expand sales by concentrating on high-value-
added product ranges, both in Japan and in
overseas markets. The company is also ration-
alizing its sales network for ophthalmic frames
and sunglasses—for instance, it has discontin-
ued operations at U.S. sales subsidiary Nikon
Eyewear Inc. Nikon aims to raise its cost com-
petitiveness in this area through expansion of
its overseas procurement program.
As a result of the sudden downturn in the
semiconductor market, Nikon failed to launch
its chemical mechanical polishing (CMP) sys-
tem business fully during the year. However,
since we have firmly established a strong tech-
nical reputation in next-generation chip manu-
facturing-related processes, we expect to be
able to grab market share in the high-end seg-
ment of the CMP system market in the future.