Lehigh Valley

Mixed results for Olympus

TOKYO - Continuing the trend it established in the first quarter of fiscal 2018 (April – June 2017), Olympus Corporation, which has its Olympus Corporation of America headquarters in Center Valley, Lehigh County, reported that consolidated revenue and profit company-wide increased in the six months ended September 30, 2017 compared to the same period in 2016.

Driving the performance was a 10 percent increase in revenue in the Scientific Solutions Business, a 7 percent increase in revenue in the Imaging Business, and 6 percent growth in Medical Business revenue.

Revenue increased across all major Medical Business product lines in the first six months of fiscal year 2018, as Gastrointestinal Endoscopes increased 3 percent, Surgical Devices increased 10 percent and Endotherapy Devices rose 14 percent.

But results for the Medical Business in North America were not as positive as the rest of the world. North American sales of Gastrointestinal Endoscopes were down 3 percent, due primarily to certain large-scale orders being delayed until the second half of fiscal 2018. Sales of Surgical Devices were flat compared to fiscal 2017 as mainstay systems struggled to grow in the late stages of their product cycles. Endotherapy Devices, on the other hand, grew by 3 percent in North America in the first half of fiscal 2018.

Operating profit in the Medical Business was down 7 percent, driven by a lower gross profit margin due to product mix changes and higher selling, general and administrative expenses due to expenses incurred for strengthening sales and service systems and other costs.

For the full year of fiscal 2018, Olympus expects the Medical Business to increase revenue by 3 percent and increase operating profit by 6 percent, compared to forecasts made in the first quarter of fiscal 2018. Scientific Solutions projects revenue to increase 2 percent and operating profit to be flat compared to first quarter projections. The Imaging Business forecasts revenue to increase by 2 percent and operating profit to double compared to the earlier forecasts.

Founded in 1919, Olympus has become a precision technology leader creating innovative opto-digital solutions in the healthcare, life sciences and consumer products industries. Olympus Corporation of the Americas ( OCA ) – a wholly owned subsidiary of Olympus Corporation in Tokyo, Japan – was established in 1968 in Lake Success, New York. It is now headquartered in Center Valley with more than 5,000 employees in locations throughout North and South America.

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