Olympus profit slumps 60 percent, shareholders' equity drops

TOKYO Thu Aug 9, 2012 2:42am EDT

TOKYO Aug 9 (Reuters) - Olympus Corp reported a 60 percent fall in quarterly operating profit and a deterioration in a key barometer of its ability to meet financial obligations, adding pressure on the scandal-hit Japanese company to enter into a capital deal.

For the April-to-June quarter, operating profit was 2.12 billion yen ($27.05 million), the company said on Thursday. Shareholders' equity fell to 2.2 percent of total assets.

The drop in the shareholders' equity ratio from 4.6 percent in March further pushes Olympus away from the 20 percent level widely regarded by analysts as indicative of corporate financial stability.

The 93-year-old manufacturer of cameras and medical equipment, has been in talks with several Japanese companies including FujiFilm Holdings on a capital tie-up as it tries to mend its severely depleted balance sheet hit by a massive accounting scandal last year.

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