Olympus set to lose £260m

Published on Tuesday 14 February 2012 00:00

Scandal-hit Olympus yesterday forecast a full-year loss of about £260 million due largely to its ailing camera operations.

However, strength in its endoscope business suggests that its core division will emerge from the debacle unscathed and its president said it might try to go it alone without seeking outside capital.

The Japanese maker of cameras and medical equipment has been considering alliance offers to shore up its finances after £1 billion accounting scandal severely depleted its assets, with Fujifilm, Samsung and Sony believed to be among possible suitors.

Olympus president Shuichi Takayama reiterated that any decision on tie-ups must wait until the installation of new management after its annual shareholders’ meeting in April, and added that pressing on without boosting capital was also an option.

The accounting scandal erupted when the company fired its British chief executive Michael Woodford on 14 October, after he raised concerns about dubious book-keeping.

Since then, Olympus has admitted it used improper accounting to conceal massive investment losses under a scheme that began in the 1990s. It remains under investigation by law enforcement agencies in Britain, Japan and the US.

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