Japan's Olympus net profit rises in first half on robust sales

TOKYO (AFP) Nov 10, 2003
Japanese camera and image equipment maker Olympus said Monday group net profit in the first half rose 15.6 percent from a year ago to 15.5 billion yen (140.8 million dollars) on growing sales of digital cameras and endoscopes, coupled with cost-cutting efforts.

Recurring profit in the six months to September edged up 0.1 percent to 26.1 billion yen on sales of 299.7 billion yen, up 15.3 percent from last year.

Growing digital camera sales in the European and US markets as well as strong endoscopes sales in Japan boosted the overall sales and profits, the company said.

Cost-cutting and decreasing special losses also contributed to the rise in profits, said Olympus Corp., which changed its name from Olympus Optical Co. Ltd. last month.

The company said the yen's depreciation against the euro helped boost sales in Europe, pushing up consolidated revenue by about seven billion yen.

The yen weakened to the average exchange rate of 133 yen to the euro in April-September from 117 yen a year earlier while firming to 118 yen to the dollar on average in the first half from 123 yen a year ago.

For the year to March 2004, Olympus forecast net profit at 37 billion yen and recurring profit at 60 billion, unchanged from its previous estimates.

Sales, however, are seen at 660 billion yen, higher than the initial projection of 650 billion yen, on continued growth in digital camera and medical equipment sales.

Olympus shares fell 70 yen or 3.02 percent to close at 2,245 yen on the Tokyo Stock Exchange Monday, when the exchange's key Nikkei-225 index fell 1.17 percent.

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