Olympus 2005 Annual Report Download - page 28

26 O LYMPUS 2 00 5
–11 ,82 7
Net Sales
(Millio ns of yen)
01 0 2 0 3 04 05
Shareholders’ equity
To tal assets
Net income (loss)
O perating income
46 6,7 04 52 8,415 56 4,343
63 3,6 22
81 3,5 38
O perating Income / Net Income (Loss)
(Millio ns of yen)
01 0 2 0 3 04 05
35,496
42,283
62,346 62,997
23,153
11,787 10,279
24,348
33,564
19 2,2 29 20 1,547 22 2,432 2 52,179 2 40,83 7
Total Assets and Shareholders’ Equity
(Millio ns of yen)
01 0 2 0 3 04 05
58 4,1 03 56 2,078 60 5,768
68 2,6 73
85 8,0 83
CO N SO LIDATED RESULTS OF O PERATION S
N et Sales
> Total net sales climbed 28.4% to ¥813,538 million (US$7,396
million). However, ¥1 7 0 ,3 8 7 million of these sales are attribut-
able to consolidated sales at ITX Corporation, which became a
consolidated subsidiary in the second half of the fiscal year
under review. Excluding this factor, consolidated net sales would
have increased 1.5%, marking the 11th consecutive fiscal year
of growth in net sales.
Sales in the Imaging Systems Business decreased 6.4% to
¥277,685 million (US$2,524 million). Although the digital cam-
era market continued to expand, and ultra-thin digital cameras
became a hit pro duct category in Japan, O lympus lagged
behind mainstream market trends and was late to introduce high-
resolution, thin-body, large-screen digital cameras. We contin-
ued to face further price declines and severe competition as
competitors aggressively launched new mo dels. Moreover, high-
er sales from robust demand in European and Asian markets
were unable to compensate for declines in Japan. Tho ugh we
maintained our number one share of the world market for com-
pact cameras, sales of film cameras continued their considerable
decline from the previous fiscal year, o wing to persistently
falling prices in a shrinking domestic market and tremendous
growth in digital cameras in overseas markets.
In the Medical Systems Business, sales increased 6.3% to
¥230,525 million (US$2,096 million). Medical endoscopes
enjoyed favorable sales thanks to robust demand in Japan fo r
HDTV-co mpatible models, especially our high-value-added EVIS
LUCERA mainstay endoscope system. O verseas sales grew on
the back of contributions from higher sales of the EVIS EXERA
endoscope system in Europe and the United States, as well as a
stronger sales force from the establishment of a sales subsidiary
in China. Sales of minimally invasive products grew on the back
of favorable demand for the endo-surgery video camera system
platform VISERA and the V-System.
In the Life Science Business, sales rose 10.3% to ¥79,153 mil-
lion (US$720 million). Sales of biological microscopes increased
firmly compared with last year, reflecting the introduction of the
FLUOVIEW FV1 0 0 0 in the United States overcoming lower sales
in Japan due to heightened competition. In the diagnostic sys-
tems field, domestic sales were steady for biochemical examina-
tion equipment and blood transfusion-related products. In the
United States, sales rose for the AU54 0 0 , large-scale biochem-
istry examination equipment.
Sales of the Industrial Systems Business advanced 17.0% to
¥49,788 million (US$453 millio n). This increase was attribut-
able to stronger sales of industrial endoscopes and higher sales
of industrial micro sco pes, supported by growth in the digital
consumer electronics market, as well as robust capital investment
in the semiconductor industry.
N et Income
> O perating income fell 63.2% to ¥2 3 ,1 5 3 million (US$2 1 0 mil-
lion), reflecting a substantial increase in cost o f sales. The ratio
of selling, general and administrative expenses to net sales
decreased from 37.2% to 33.7%. O lympus posted a net loss of
¥11,827 million (US$108 millio n), compared with net income of
¥33,564 million in the previous fiscal year, owing to extraordi-
nary losses on restructuring in the Imaging Systems Business and
the partial reversal of deferred tax assets.
FIN AN CIAL REVIEW