Fujifilm seeks alliance with Olympus

7 years ago by in Business, Featured Tagged: ,

Japanese technology company Fujifilm has offered an alliance proposal to scandal-troubled Olympus, in an attempt to capitalize on the two companies’ common expertise in medical operations.

Fujifilm announced on Monday a 51 percent decrease of its net profit, to Y8.8 billion ($114 million), for the October-December period. Sales dropped slightly, to Y451 billion, from Y462 billion during the same period of the previous year.

A possible alliance between the two could be mutually positive, since Olympus was forced to seek partners after it had admitted covering up $1.7 billion in losses.

“Olympus has a very strong business in endoscopes while Fujifilm is a leading firm in the areas of X-ray image diagnosis and ultrasonic systems,” said a Fujifilm spokesman.

Fujifilm was forced by increased competition to diversify from photographic film business to other sectors, like digital imaging in healthcare.
Its main rival, U.S.-based Kodak, had to file for bankruptcy last month, defeated by the market’s trend from film to digital.