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Fujifilm to delay earnings release amid accounting probe into transactions by overseas unit

Kyodo

Fujifilm Holdings Corp. said Thursday it will postpone the release of earnings reports for the business year ended in March after it discovered about ¥22 billion ($201.7 million) in net profits may have been incorrectly declared over the past several years.

The camera, cosmetics and medical equipment maker said it has set up a third-party panel to investigate the validity of accounting results over some lease transactions by its overseas unit, Fuji Xerox New Zealand Ltd., before fiscal 2015.

The company said it expects to receive the outcome of the probe by the end of May.

Fujifilm was initially scheduled to release its earnings reports for fiscal 2016 on April 27. The company said it remains to be seen when it will announce them.

The manufacturer said a whistleblower reported in July 2015 that there were improper contracts in a lease business inside Fujifilm. Although the unit had once judged them appropriate after conducting an internal audit, an external auditor later pointed out the accounting problem.

Fuji Xerox New Zealand, which sells and leases products such as printers, had tried to bolster its lease business aggressively but its devices were not used as frequently as it had expected, a source close to the matter said.