Sanyo Paid Dividends Despite Losses for 2002-2004

Sanyo Electric, the struggling electronics maker that is restructuring with the help of shareholder Goldman Sachs , said on Tuesday it made incorrect dividend payments worth 28 billion yen ($250 million) between 2002 and 2004.

The Tokyo Stock Exchange put Sanyo on its supervisory post, a watch list that could lead to a delisting.

The company said it made dividend payments for five half-year periods from the six months ended in September 2002 to the half year ended in September 2004, but a restatement of its earnings for six years to March 2006 showed the firm did not have enough money to justify the payouts.

The earnings shortfall came to light after the firm reviewed its earlier write-down of shares of some affiliates and corrected deferred tax assets accordingly in the past years.

The company said the restatement applied to parent-only earnings and did not affect consolidated results.

The Osaka-based company said in February it was considering restating its parent-only earnings for the four years to March 2004, following a report that it might have failed to account for large losses.