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November 28, 2007 |
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SANYO ELECTRIC: To Book JPY100MM Loss for Year Ended March 2001 Sanyo Electric Co., Ltd., will book a much higher loss of more than JPY100 billion for the year ended March 31, 2001, after reviewing its past results, Kiyoshi Takenaka of Reuters reports, citing the Nikkei business daily. The consumer electronics maker, relates Reuters, originally booked a JPY6-billion loss in its struggling microchip and liquid crystal display operations businesses for fiscal year 2001 on the grounds that those businesses were expected to recover eventually. However, after reassessing its past earnings with more rigorous accounting standards, Sanyo realized that it needs to book an additional loss in excess of JPY100 billion for the year, states Mr. Takenaka. The Nikkei daily, conveys Reuters, explained that the additional losses mean Sanyo's annual dividend of JPY6 per share in year ended March 2003 was underfunded by JPY10 billion, infringing on accounting rules that dividends are paid out within funds available for such purposes, including retained earnings. Sanyo, as stated by the Nikkei report, is expected to submit the revised earnings next month to Japan's Securities and Exchange Surveillance Commission and may face fine penalties. Meanwhile, in a company-issued statement, Sanyo claims that the Nikkei report was based on speculation and expresses that it is still in the process of reviewing its past earnings, Reuters notes. Sanyo, Reuters relates, said in February that it was considering restating its past unconsolidated earnings, following a report by the Asahi newspaper that it may have failed to account for more than US$1 billion in losses. Reuters adds that Sanyo also plans to report revised financial statements by the end of the year, and any revision would have no impact on its consolidated earnings. About Sanyo Electric Headquartered in Osaka, Japan, Sanyo Electric Co., Ltd. -- http://www.sanyo.com/ -- is one of the world's leading manufacturers of consumer electronics products. The company has global operations in Brazil, Germany, India, Ireland, Spain, the United States and the United Kingdom, among others. * * * In March 2, 2007, Fitch Ratings placed SANYO Electric Co. Ltd.'s BB+ long-term foreign and local currency issuer default and senior unsecured ratings on rating watch negative. |
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