Olympus Drops After Net Forecast Cut on Camera Loss: Tokyo Mover
Feb. 13 (Bloomberg) -- Olympus Corp., a Japanese digital camera and endoscope maker, slumped the most in more than three months in Tokyo trading after cutting its outlook for profit on an impairment loss at its imaging division.
The medical and precision equipment maker fell 2.7 percent, the biggest drop since Nov. 6, to close at 2,020 yen. Net income will probably be 6 billion yen ($64 million) this fiscal year, compared with a previous forecast for 8 billion yen, the company said yesterday after market hours.
Olympus said it expects to lose about 16 billion yen this fiscal year at its camera business, double the 8 billion yen target set in November. The company intends to have a reorganization plan ready for its camera operations by the time it announces earnings for the year ending March, Senior Executive Director Yasuo Takeuchi said.
“We were too optimistic” about the camera business, Takeuchi told reporters yesterday in Tokyo. “We recognize that the forecast cut is large.”
The company and rivals including Nikon Corp. have reported weakening demand as consumers turn to smartphones that can take pictures. Global shipments of digital cameras fell 14 percent in value in November from the previous month, according to the Camera & Imaging Products Association in Tokyo.
Olympus cut its full-year sales target for cameras to 110 billion yen from the 129 billion yen estimate made in November, according to the statement. The company booked a 3.7 billion yen impairment loss at its imaging systems business for the three months ended December, according to the statement.
--Editors: Dave McCombs, Frank Longid