Olympus' medical business posts fall in Q3 profit, while sales flat

Headline results for the third quarter:

Revenue

158.8 billion Japanese yen ($1.4 billion)

Unchanged

Operating profit

31.8 billion yen ($289 million)

-2%

Note: All changes are versus the prior-year period unless otherwise stated

Other results:

·         Gastrointestinal endoscopes: 83.8 billion yen ($763 million), down 2 percent

  • "ongoing difficulty" in securing budgets among hospitals in Japan, offset by solid sales of new scopes introduced in 2018
  • "positive growth" in Europe
  • North American revenue down 4 percent on a constant currency basis
  • growth in Asia/Oceania driven by China

 

·         Surgical devices: 54.1 billion yen ($492 million), up 5 percent

  • "favourable performance" for mainstay VISERA ELITE II system and energy devices in Japan and Europe
  • North America had "impressive" 4K surgical endoscopy system sales and system integration sales due to synergies with IMS

 

·         Endotherapy devices: 20.9 billion yen ($190 million), no change

  • "ongoing positive growth in all regions," particularly in North America and Asia/Oceania, with the latter centred on China

 

Looking ahead:

Olympus continues to expect sales in the medical business of 634 billion yen ($5.8 billion) in fiscal 2019, with operating profit of 127 billion yen ($1.2 billion). 

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