07.27.09
$3.3 Billion ($10.7B total)
KEY EXECUTIVES:
Tsuyoshi Kikukawa, President and Representative Director
Haruhito Morishima, President, Olympus Medical Systems
Corp.
F. Mark Gumz, President, CEO and COO, Olympus Corp.
of the Americas
Rick Harbuck, Group VP, Olympus Corp. of the Americas
NO. OF EMPLOYEES: 36,503 (total)
GLOBAL HEADQUARTERS: Tokyo, Japan
Fiscal 2008 proved to be a record-setting year for Olympus Group. Besides posting its 14th consecutive increase in annual net sales, the company achieved its 100 billion-yen operating income target ($850.6 million U.S. dollars) one year ahead of schedule.
Olympus executives attributed the achievements to several factors, including a departure from an “endoscope-dependent business operation,” the establishment of a sustainable earnings structure in its Imaging Systems business, the creation of new businesses, the reform of its production structure and the enhancement of corporate brand value. “The efforts that have gone into these measures are steadily bearing fruit,” Tsuyoshi Kikukawa, Olympus president, said in the company’s 2008 annual report.
In fiscal 2008, Olympus enjoyed a bumper crop of financial fruit, as net sales climbed 6.3 percent to $10.7 billion. Operating income totaled $1 billion, a 30.3 percent increase compared with the $823 million the company posted in fiscal 2007. Net income rose to $552 million, a 38.6 percent jump compared with the $398 million Olympus reported in 2007. Kikukawa linked the net sales hike to higher demand for Imaging Systems products and robust sales of endoscope systems, surgical endoscopes and endotherapy devices in Japan and overseas.
The Medical Systems division, which manufactures medical endoscopes, surgical endoscopes, endotherapy products and ultrasound endoscopes, emerged as the top revenue-generating segment in fiscal 2008 (ended March 31, 2008). Net sales totaled $3.3 billion, a 27 percent increase compared with the $2.6 billion in revenue the segment generated in fiscal 2007. Operating income grew 12 percent to $937 million, and sales of gastrointestinal endoscopes increased 11 percent to $2.2 billion.
Executives attributed the revenue increase in Medical Systems revenue to sales of the Evis Exera II high-resolution HDTV endoscope system in the United States, Europe, Oceania (which includes Asia, Australia, India, Korea, Malaysia, New Zealand, Philippines, Singapore, Taiwain, Thailand and Vietnam) and Latin America. The system uses high-definition images and specific light spectra to spot hard-to-detect lesions or abnormalities in the colon.
Sales of gastrointestinal endoscopes in Japan were driven by demand for the Evis Lucera Spectrum endoscope system, a device similar to the Evis Exera II that uses a Xenon light source to spot intestinal lesions. Domestic sales also were brisk for the company’s slim, upper gastrointestinal videoscopes that can be inserted through the nasal tract or mouth.
Other products that contributed to the revenue increase in the Medical Systems division included a capsule endoscope for the small bowel (introduced in the United States) and the Single Balloon Enteroscope System (released worldwide), a device that makes it easier for doctors to examine the small bowel.
Sales of minimally invasive products also helped boost earnings in Olympus’ Medical Systems division. Revenue jumped 18.4 percent in fiscal 2008 to $1.1 billion, as demand grew overseas for biopsy forceps, clipping devices for hemostasis, a disposable guide sheath kit used to collect specimens in respiratory organs, and guidewires.
According to Olympus, the Evis Exera II was a favorite among overseas surgeons, and customers in Asia clamored for the company’s Visera Pro system, an integrated system of digital rigid, deflectable tip and flexible videoscopes for use in operating room endosurgery as well as office-based endoscopy procedures. American and European customers continued to favor the high-definition videoscopes for abdominal and chest exams.
In an effort to further blanket the worldwide market with its products, Olympus acquired United Kingdom-based Gyrus Group PLC, a supplier of electrosurgical knives for urological and gynecological use, in November 2007. Haruhito Morishima, president of Olympus Medical Systems Corp., said the $1.9 billion acquisition helps the company reinforce and expand its footprint in the surgical and minimally invasive procedure fields.
“In global terms, Olympus currently boasts a 70 percent share of the gastroentereological endoscopes market,” Morishima said in an interview in the 2008 annual report. “However, we must endeavor to develop the surgical business to contribute more to minimally invasive procedure and to nurture our Medical Systems business. After reviewing our strategy, we came to the conclusion that Gyrus would be an ideal partner in reinforcing Olympus’ surgical business.”
Olympus projects continued growth in endoscope system sales in fiscal 2009, as it works to offer its customers a broader array of products through Gyrus. Based on its bountiful year in fiscal 2008, the company forecast Medical Systems sales to total $4.1 billion and operating income to amount to $1 billion in fiscal 2009. Thanks to the recession though, the company came up short: According to its latest earnings release, Medical Systems sales were flatat $3.94 billion and operating income fell to $771 million.
Haruhito Morishima, President, Olympus Medical Systems
Corp.
F. Mark Gumz, President, CEO and COO, Olympus Corp.
of the Americas
Rick Harbuck, Group VP, Olympus Corp. of the Americas
NO. OF EMPLOYEES: 36,503 (total)
GLOBAL HEADQUARTERS: Tokyo, Japan
Fiscal 2008 proved to be a record-setting year for Olympus Group. Besides posting its 14th consecutive increase in annual net sales, the company achieved its 100 billion-yen operating income target ($850.6 million U.S. dollars) one year ahead of schedule.
Olympus executives attributed the achievements to several factors, including a departure from an “endoscope-dependent business operation,” the establishment of a sustainable earnings structure in its Imaging Systems business, the creation of new businesses, the reform of its production structure and the enhancement of corporate brand value. “The efforts that have gone into these measures are steadily bearing fruit,” Tsuyoshi Kikukawa, Olympus president, said in the company’s 2008 annual report.
In fiscal 2008, Olympus enjoyed a bumper crop of financial fruit, as net sales climbed 6.3 percent to $10.7 billion. Operating income totaled $1 billion, a 30.3 percent increase compared with the $823 million the company posted in fiscal 2007. Net income rose to $552 million, a 38.6 percent jump compared with the $398 million Olympus reported in 2007. Kikukawa linked the net sales hike to higher demand for Imaging Systems products and robust sales of endoscope systems, surgical endoscopes and endotherapy devices in Japan and overseas.
The Medical Systems division, which manufactures medical endoscopes, surgical endoscopes, endotherapy products and ultrasound endoscopes, emerged as the top revenue-generating segment in fiscal 2008 (ended March 31, 2008). Net sales totaled $3.3 billion, a 27 percent increase compared with the $2.6 billion in revenue the segment generated in fiscal 2007. Operating income grew 12 percent to $937 million, and sales of gastrointestinal endoscopes increased 11 percent to $2.2 billion.
Executives attributed the revenue increase in Medical Systems revenue to sales of the Evis Exera II high-resolution HDTV endoscope system in the United States, Europe, Oceania (which includes Asia, Australia, India, Korea, Malaysia, New Zealand, Philippines, Singapore, Taiwain, Thailand and Vietnam) and Latin America. The system uses high-definition images and specific light spectra to spot hard-to-detect lesions or abnormalities in the colon.
Sales of gastrointestinal endoscopes in Japan were driven by demand for the Evis Lucera Spectrum endoscope system, a device similar to the Evis Exera II that uses a Xenon light source to spot intestinal lesions. Domestic sales also were brisk for the company’s slim, upper gastrointestinal videoscopes that can be inserted through the nasal tract or mouth.
Other products that contributed to the revenue increase in the Medical Systems division included a capsule endoscope for the small bowel (introduced in the United States) and the Single Balloon Enteroscope System (released worldwide), a device that makes it easier for doctors to examine the small bowel.
Sales of minimally invasive products also helped boost earnings in Olympus’ Medical Systems division. Revenue jumped 18.4 percent in fiscal 2008 to $1.1 billion, as demand grew overseas for biopsy forceps, clipping devices for hemostasis, a disposable guide sheath kit used to collect specimens in respiratory organs, and guidewires.
According to Olympus, the Evis Exera II was a favorite among overseas surgeons, and customers in Asia clamored for the company’s Visera Pro system, an integrated system of digital rigid, deflectable tip and flexible videoscopes for use in operating room endosurgery as well as office-based endoscopy procedures. American and European customers continued to favor the high-definition videoscopes for abdominal and chest exams.
In an effort to further blanket the worldwide market with its products, Olympus acquired United Kingdom-based Gyrus Group PLC, a supplier of electrosurgical knives for urological and gynecological use, in November 2007. Haruhito Morishima, president of Olympus Medical Systems Corp., said the $1.9 billion acquisition helps the company reinforce and expand its footprint in the surgical and minimally invasive procedure fields.
“In global terms, Olympus currently boasts a 70 percent share of the gastroentereological endoscopes market,” Morishima said in an interview in the 2008 annual report. “However, we must endeavor to develop the surgical business to contribute more to minimally invasive procedure and to nurture our Medical Systems business. After reviewing our strategy, we came to the conclusion that Gyrus would be an ideal partner in reinforcing Olympus’ surgical business.”
Olympus projects continued growth in endoscope system sales in fiscal 2009, as it works to offer its customers a broader array of products through Gyrus. Based on its bountiful year in fiscal 2008, the company forecast Medical Systems sales to total $4.1 billion and operating income to amount to $1 billion in fiscal 2009. Thanks to the recession though, the company came up short: According to its latest earnings release, Medical Systems sales were flatat $3.94 billion and operating income fell to $771 million.