Olympus cuts earnings forecast on sluggish camera sales
TOKYO - Olympus Corp. on Tuesday revised downward its earnings projection for the current business year through March, weighed down by shrinking sales of digital cameras.
It now expects to post a group net profit of 6 billion yen, down 2 billion yen from its projection in November, and a consolidated operating profit of 35 billion yen, down 3 billion yen, on sales of 740 billion yen, down 17 billion yen.
The Japanese camera and medical equipment maker slashed its full-year sales target for digital cameras from 7.3 million units to 6.2 million units.
For the April to December period, Olympus returned to the black due mainly to robust performance in its medical business, booking a group net profit of 7.62 billion yen compared with a loss of 33.09 billion yen a year earlier.
Its group operating profit for the nine-month period fell 5.2 percent to 24.61 billion yen, while sales dropped 10.2 percent to 561.23 billion yen.
Olympus said its capital adequacy ratio rose to 9.7 percent as of the end of December after it fell to 2.2 percent in June following the firm's loss coverup scandal.
The company attributed the recovery to the recent trend of a weaker yen as well as a payment of 19 billion yen from Sony Corp. as the first tranche of capital investment under their capital and business tie-up deal in the medical segment.