Archived posting to the Leica Users Group, 1998/02/11

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Subject: Re: [Leica] Leica hit by Asian crisis
From: "Hans Pahlen" <hans@komvux.skola.mark.se>
Date: Wed, 11 Feb 1998 15:47:12 +0100

What does streamlining of products range mean? Removing less profitable
products, or what?
/Hans

>An article in this morning's Financial Times said that Leica is to cut
>costs after sales dropped by 47% in Asia.  It noted that  sales and profits
>fell sharply in the closing months of 1997 and that the company was about
>to embark on cost-cutting and streamlining of its product range.  According
>to the FT, cameras originally destined for Asia were diverted putting
>pressure on prices in the US and Europe.  The Minox division was singled
>out as encountering particular difficulties.  They claim that Leica will
>reduce capacity to counter the sales trend.  The article closes by noting
>that the Minox operation will be restructured to focus on core products
>with both job cuts and a move of production to Portugal.
>
>This is a bit hard to square with news of the new M6 and the new 28-35-50
>lens.  It may explain the long lag in getting replacement lenses recently
>reported by a number of people on the LUG.
>
>Steve
>
>
>