Pentax in talks on camera production with Samsung
Pentax in talks on camera production with Samsung
Reuters via Yahoo! News
TOKYO (Reuters) – Pentax Corp. (7750.T) would like to jointly produce digital single lens reflex (SLR) cameras with a unit of South Korea’s Samsung Electronics (005930.KS) and is in discussions about a deal, Pentax’s chief executive said on Wednesday.
In an interview with Reuters, Fumio Urano also said strong sales of digital cameras and cost cuts would allow its imaging division to book a smaller-than-expected loss in the business year that ended on March 31 and to swing to a small profit in 2006/07.
Urano said Pentax would aim to ship about 3.0 million digital cameras in 2006/07, which started this month, up about 8 percent year-on-year.
That forecast includes a doubling of digital SLR models from an estimated 120,000 units in 2005/06.
Pentax said in October that it and Samsung Techwin Co. Ltd. (012450.KS) would jointly develop digital SLR cameras to pool resources and cut costs, but the agreement did not extend to joint production.
Urano said Pentax was in discussions about possibly making digital SLR bodies with Samsung, believing it would be more efficient to make them together. Pentax would continue to make the interchangeable lenses on its own.
“We have signed an agreement for joint development but going forward we will be talking about various things including how best to handle production,” Urano said. “The body is basically the same so it would be best to make it together in one place.”
Urano said Pentax would likely be able to hit its sales target of 160 billion yen ($1.4 billion) in 2006/07, but said it would be difficult to achieve its operating profit target for that year of 10 billion yen, nearly double its 2005/06 estimate.
Urano also said he has put aside 10 billion yen for acquisitions over the next year.
He said any acquisitions would likely be to strengthen its life care division, which includes its endoscopes and artificial bone businesses.
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