OLYMPUS SLIPS TO RECORD US$1.2 BLN NET LOSS ON GOODWILL CHARGES

Tue. May 12, 2009; Posted: 11:22 PM

TOKYO, May 13, 2009 (AsiaPulse via COMTEX) -- OCPNY | Quote | Chart | News | PowerRating -- Olympus Corp. (TSE:7733) reported Tuesday a record group net loss of 114.8 billion yen (US$1.2 billion) for the year ended March 31, an about-face from the 57.9 billion yen net profit of fiscal 2007.

Sales slumped 13 per cent on the year to 980.8 billion yen, while operating profit plunged 69 per cent to 34.5 billion yen. Results were weighed down by a combined 76.2 billion yen write-off of goodwill stemming from a number of subsidiaries, including information technology firm ITX Corp., whose stock price nosedived.

"We made conservative valuations in line with internal rules," explained Hisashi Mori, an Olympus director.

The key medical business was boosted by the February 2008 acquisition of British medical device maker Gyrus ACMI and by solid demand for such items as endoscopes and treatment equipment. Although sales rose, operating profit dropped 24 per cent because of goodwill amortization expenses resulting from the Gyrus purchase.

With sales of digital cameras tumbling 12 per cent in unit terms and their prices also sinking, the imaging business slipped into the red with an operating loss of 5.1 billion yen.

Double-digit drops in operating profit were logged by the life science segment, which handles such products as microscopes, and the information and communication business, which oversees cellular phone sales and other operations.

In light of the results, Olympus will halve its annual dividend to 20 yen per share.

(Nikkei)

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