By Kosaku NariokaOlympus Corp. shares fell sharply Monday morning after the medical-equipment maker projected a 13% drop in net profit for the fiscal year started in April due to higher compliance costs and quality management. Olympus said Friday after market close that it expected operating profit to drop to Y163.00 billion ($1.20 billion) this fiscal year from Y186.61 billion the previous fiscal year. The company said that despite a projected revenue increase, costs related to quality assurance and regulatory affairs will likely weigh on operating profit. Olympus expects fiscal-year operating profit from its endoscope business to increase 3.4% to Y158.00 billion and that of its therapeutic business to drop 12% to Y56.00 billion. For the fiscal year ended March, revenue rose 18% and net profit climbed 24% to Y143.43 billion.

Source: Wall Street Journal May 15, 2023 02:11 UTC