[Leica] Leica - paragraph 92

[douglas.sharp at gmx.de (douglas.sharp@gmx.de)]

I've been reading up some info on the paragraph 92. 
There is a law in Germany which forces a company to hold an "emergency"
(the direct translation is "extraordinary", which only really means not at
the usual calendar intervals)) shareholder meeting if the losses become
equal to or greater than 50% of total company assets - not just share value,
cash in hand, saleable stock etc too. At such a meeting the management has
to present a "rescue" plan for the next fiscal period, if this is not
accepted then the board of control (Aufsichtsrat) can be voted off and
replaced. In many cases this is the event where interested parties start
moving in for the kill - it may be interesting to observe share movements of
Hermes stock in the next few days - also, if a vote of no confidence causes
share values to drop again (if Leica shares are still being handled) it will
be interesting to see who is there hovering like vultures to pick the bones.

The situation of Leica is much different from that of Daimler,VW and a few
of the big concerns in Germany, not only because of the size of the
companies involved. Leica is only a "mittelst?ndische Betrieb", a small
company with a very limited range of activities, as such they are not
particularly interesting for investors (like placing bets on just one number
in roulette). The only BIG things about Leica are their reputation and
history - 2 things which just do not make money. 

If Leica is taken over by an investment group, similar to what happened to
Rollei, then I can easily see the same results. Rollei has pushed the
Professional camera division out in an open boat with very limited rations
and told them to sink or swim. The end of 2005 will tell us more about their
survival.
As to German companies buying Leica stock to rescue the company, why didn't
they do it at the time of the Hermes transaction?
Unfortunately, Leica is neither in the Black Forest or any other part of
Bavaria or the state of Baden-W?rtemmberg, which, as high-tech industrial
areas would be very pleased to offer state subsidies for an ailing company
of Leicas reputation. The state of Hessen (where Solms and Wetzlar are)is
just not as rich, and help from Berlin is just as unlikely.
The present economic situation in Germany is that hardly any companies are
investing in German production sites at all, in fact if the unions demand a
pay rise the management threatens to move elsewhere,usually the new member
states of the European Union, or even farther afield, most of the telephone
hotlines are already located in the UK or even India.
Even suffering from the 14th day of a 5 day collect and return repair
service for Fujitsu-Siemans computers located in the wilds of the ex-GDR,
salaries there are around 30% lower than in the rest of Germany! and
unemployment is running at around 20% too.
On the cards at the moment are for example massive lay offs planned at
GM-Opel(up to 10,000) Deutsche Bank (6,400 although their profits are the
highest in their history), one of the largest building contractors Walterbau
has gone bust and the best bits have been grabbed by the Austrian Strabag
concern.VW has just announced lousy figures for the last quarter and are
reducing workers benefits across the board.
At the same time CEOs salaries have risen, on average,by 240% in the last
couple of years, workers salaries by 2.4%. If it wasn't verboten there would
have been a national strike here ages ago.

Leica has been promising "Jam tomorrow" for too long now, they didn't just
miss the boat, they lost the map telling them where to find the water and
were always too proud to ask the way.
Douglas
 

> First, there's an enormous difference between reporting a loss - Leica's
> had losses for some time - and a loss equal to half one's market cap.
> The first is bad news; the second is a real disaster;
> 
> Second, Mercedes is just a small part of Daimler (sp) Chrysler - not a
> pseudo independent boutique company.
> 
> Third, if you want to talk about "creative" accounting, I'd suggest that
> that's probably what kept the company afloat for the past several years;
> 
> Fourth, Leica isn't BMW, and they've got no Land Rover to sell off;
> 
> Fifth, I was told last night - and I cannot vouch for the accuracy of
> this, that Herr Coenen is either actively going or gone. And I repeat, I
> cannot vouch for the accuracy of that, but it would hardly be surprising
> given this latest report.
> 
> 
> 
> -----Original Message-----
> From: lug-bounces+bdcolen=earthlink.net@leica-users.org
> [mailto:lug-bounces+bdcolen=earthlink.net@leica-users.org] On Behalf Of
> Mark Rabiner
> Sent: Thursday, February 17, 2005 11:15 PM
> To: Leica Users Group
> Subject: Re: [Leica] Leica Solms reports 50% loss what does this mean? 
> 
> 
> On 2/17/05 10:16 AM, "William G. Lamb, III"
> <lambroving@worldnet.att.net>
> typed:
> 
> > 
> > Reality check.
> > 
> > Mercedes Benz is reporting a huge loss for the same period.
> > 
> > Rich people who buy high-end consumables have been in retreat for over
> 
> > a year. I know, I sell them.
> > 
> > LUG subscribers hardly typify the current buyers of new Leica gear, 
> > professional or amateur. Same goes for most other listservs. People 
> > who have $$$ to spend on Leicas are WAY too busy to read this banter.
> > 
> > If Leica followed the suggestions offered here and on other listservs,
> 
> > they would have been bankrupt ages ago.
> > 
> > Coenen probably has a pretty good idea where to take this little 
> > company if he is given the chance. Remember, Leica, Solms is about the
> 
> > size of a large Home Depot or Tesco. 
> > <http://www.zeitblende.com/reportagen/leica/>
> > 
> > People who are unfamiliar with "creative" German accounting practices 
> > probably ought to avoid comment. Experienced a bit of this when BMW 
> > sold off Land Rover.
> > 
> > Is anyone here interested in buying some new stuff and supporting the 
> > company, or is the LUG just a place where ex-users come to moan and 
> > discuss Canon digitals?
> > 
> > William
> > 
> 
> I agree with all of William G. Lamb, III'rds above post. And THEN some!
> 
> When I was a teenager of 13 in 1965 I was just getting started shooting
> the then Tri X at 800 with my new handed down Voigtl?nder Vito BL 35mm
> rangefinder type camera and developing it in my darkroom with locally
> made Acufine. I wanted to know if there was a way of getting less in the
> picture. Zooming in more. I was told I needed a "telephoto lens". And to
> get one I would need to get a Leica. But to not do so as everyone
> clearly knew the company was going out of business by the end of the
> year. I've heard that every year since. Year by year. Forty of them.
> 
> And on the lug about every 3 or 4 months.
> 
> Unfortunately the LUG has in good part become a place where people come
> who no longer use their Leicas anymore to rationalize that. The "trolls"
> have become the average thread. We get good stuff too.
> 
> Not on the other Nikon, Contax or whatever camera lists are you going to
> find such high brow threads as: [Leica] What did Hermes pay for Leica in
> 2002? [Leica] Leica Solms LUG LHSA Buyout [Leica] Let's buy Leica Solms
> et al
> 
> > Wasn't it in the $20M range and the prospects for Leica success have 
> > declined since then...
> 
> > Your Leica M will STILL work in another 25 years? Assuming you can 
> > locate film...
> 
> >  He said that a salesman at Keeble-Shuchat told him Leica was on the 
> > "block" soon to be no more...Does this financial announcement from 
> > Solms validate that comment?
> 
> 
> However in these cases they came all all from a single very vocal, very
> negative source.
> 
> All it takes to put a pall on a list is one.
> I think we do have more than one.
> 
> 
> 
> 
> 
> 
> 
> Mark Rabiner
> Photography
> Portland Oregon
> http://rabinergroup.com/
> 
> 
> 
> 
> 
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