Olympus Corp. Shares Slump After It Projects Drop in Fiscal-Year Operating Profit

By Kosaku Narioka

Olympus Corp. shares fell sharply Monday morning after the medical-equipment maker projected a 13% drop in net profit for the fiscal year started in April due to higher compliance costs and quality management.

The company's shares were recently 7.7% lower at 2251.0 yen after falling as much as 11% earlier.

Olympus said Friday after market close that it expected operating profit to drop to Y163.00 billion ($1.20 billion) this fiscal year from Y186.61 billion the previous fiscal year.

The company said that despite a projected revenue increase, costs related to quality assurance and regulatory affairs will likely weigh on operating profit.

Olympus expects fiscal-year operating profit from its endoscope business to increase 3.4% to Y158.00 billion and that of its therapeutic business to drop 12% to Y56.00 billion.

The company's fiscal-year revenue is forecast to increase 3.6% to Y914.00 billion, and net profit is projected to more than double to Y336.00 billion thanks to proceeds from the sale of its scientific business, it said.

For the fiscal year ended March, revenue rose 18% and net profit climbed 24% to Y143.43 billion.

Write to Kosaku Narioka at kosaku.narioka@wsj.com

(END) Dow Jones Newswires

May 14, 2023 22:02 ET (02:02 GMT)

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