Olympus says it plans to meet earnings deadline

30th November 2011, Comments 0 comments

Japan's Olympus said Wednesday that it still plans to file its earnings and avoid a delisting of its shares, as the scandal-hit camera maker rejected a report it would miss the looming deadline.

The company has not filed its accounts for the three months ended September as it undergoes a probe into payments it admitted were used to cover investment losses dating back to the 1990s.

The Tokyo Stock Exchange has placed the company on its "supervision" watch list to give investors time to prepare if the stock is axed from the bourse after the December 14 deadline.

"We have continued preparing for our plan to submit the report by December 14," Olympus said in a statement Wednesday.

The statement comes a day after the Wall Street Journal reported that Olympus' auditors may be concerned about signing off on its overdue financial statements.

By law, if Olympus fails to report its second-quarter earnings, the shares will be delisted from the Tokyo bourse soon after.

Olympus shares rose 2.19 percent, or 22 yen, in volatile trading to close at 1,025 yen on Wednesday.

The shares are worth less than half their value a day before the company's ousted chief executive, Michael Woodford, was ousted on October 14 after blowing the whistle on the cover up.

Local media have reported that the investment losses may total more than 100 billion yen ($1.3 billion), with other reports pegging the figure as high as $5 billion.

Japanese authorities have launched a probe into the scam while Woodford has also met with US law enforcement.

Adding to its mounting troubles, Olympus has said a US investor filed a class-action lawsuit against the company accusing it of presenting false financial statements for at least five years.

© 2011 AFP

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