Olympus projects annual loss of $412m, missing estimates

TOKYO - Olympus Corp, the camera maker that admitted to accounting fraud and lost 59 percent of its value last year, predicted an annual loss of 32 billion yen ($412 million), which was worse than analysts' estimates. 

The scandal, which broke in October, had no major effect on Olympus' business, the Tokyo-based company said in a statement on Monday. Analysts from Barclays Capital and Deutsche Bank Group estimated a 25.5 billion-yen average loss. 

Olympus is considering ways to boost capital after it restated past securities reports and took a $1.3 billion cut in net assets in December. 

The world's biggest maker of endoscopes plans a special shareholder meeting on April 20 for investors to vote on new management. 

Any decision on a strategic alliance will be determined by a new board, President Shuichi Takayama said last month. 

The Tokyo Stock Exchange last month allowed Olympus to keep its stock market listing by fining the company 10 million yen and telling it to submit reports on efforts to improve management. 

The exchange put Olympus on a watchlist last year after the company admitted to inflating fees to advisers on the $2.1 billion acquisition of the London-listed Gyrus Group PLC in 2008 and overpaying for three Japanese companies. 

The company still faces criminal probes and shareholder lawsuits against executives including Takayama even after purging executives including ex-chairman Tsuyoshi Kikukawa, whom the company found to have been involved in the 13-year loss cover-up scheme. 

The company has been reeling since Michael Woodford disclosed inflated takeover costs after he was fired as chief executive officer on Oct 14. 

The allegations forced the company to reveal a $1.7 billion scheme to conceal soured investments dating back to the 1990s, which raised concerns among investors and lawmakers over Japan's corporate governance rules. 

The company's operating profit will probably decline 6.2 percent to 36 billion yen while its revenue may increase 0.8 percent to 854 billion yen. While the revenue forecast matched estimates, the operating-profit forecast misses the average estimate of 41 billion yen. 

Olympus closed 0.4 percent higher at 1,282 yen in Tokyo trading. The stock is down 48 percent since Woodford's dismissal.