Olympus 2002 Annual Report Download - page 4

In fiscal year 2002, ended March 31, 2002, consolidated net sales for the
Olympus Group increased 13.2% from the previous fiscal year to ¥528,415
million (US$4,227 million), operating income increased 19.1% to ¥42,283
million (US$338 million), and net income declined 12.8% to ¥10,279 million
(US$82 million). The decline in net income was the result of the evaluation
loss on marketable and investment securities. Due to the growth of digital
cameras and increased sales of medical equipment internationally,
however, Olympus was able to achieve an increase in revenues for the
eighth year in a row. In the extremely harsh environment besieging the
corporate management, it was a year marked by the keen consciousness of
an expanding company with a new management structure headed by
President Kikukawa, preserving the cornerstone of rising revenues and
profits.
Q: Could you explain the Company’s performance in fiscal 2002, your first
year as president of Olympus?
The figures recorded for consolidated net sales and operating income were
the highest in our history. Though the global economy showed signs of
recession, triggered by the collapse of the IT bubble, we were able to
manage fair results.
Net sales increased 13.2% over the previous fiscal year to ¥528,415 million
(US$4,227 million), rising for the eighth year in a row. This growth in revenue
was due mainly to increased sales of digital cameras, as well as higher sales of
medical products in Europe and the United States.
Revenue from digital cameras leapt to ¥137,933 million (US$1,103 mil-
lion) from ¥109,948 million in the previous fiscal year, growing to be a core
product that accounts for more than a quarter of sales revenue. In medical
products, sales of medical endoscopes were robust, with international sales for
the division notably rising 24.8%.
By segment, sales of the Imaging Systems Group grew 13.5%, and sales of
the Medical Systems Group grew 19.4%. The Industrial Systems Group, how-
ever, led by falling demand from our client industries, such as electronics,
posted a 3.8% decline in sales for the fiscal year.
Consolidated operating income for the Olympus Group increased 19.1%
to ¥42,283 million (US$338 million). Rising profits from medical products
compensated for a deficit caused by worsening profit margins stemming from
severe price competition for digital cameras. An income structure in which the
profitable Medical Systems Group supports the entire company is more clearly
AN INTERVIEW WITH THE PRESIDENT
The figures recorded for consolidated net
sales and operating income were the
highest in our history.