TOSHIBA WARNS OF 950B YEN LOSS
Company delays reporting earnings for 3rd time since January
Yesterday’s warning — largely linked to the bloodletting at Westinghouse — was, however, slightly better than an earlier projected net loss of 1.01 trillion yen for the year ended in March.
“We can’t officially disclose the earnings as they’re still being audited,” said Toshiba president Satoshi Tsunakawa.
Toshiba — still recovering from a 2015 accounting scandal — has said it needed more time to probe claims of financial misconduct by senior managers at Westinghouse and to gauge the impact on its finances.
The company now faces a deadline at the end of next month to file its results with Japan’s finance ministry, or face a possible end-of-July delisting.
Yesterday’s announcement comes as a sensitive time as Toshiba looks to sell its prized memory chip business.
The plan is facing opposition from Western Digital, which jointly runs Toshiba’s key chip plant in Japan.
On Sunday, the US-based firm said it was taking its case to the International Court of Arbitration, seeking an injunction to block Toshiba from selling the business to a third party.
Unloading the division, which accounts for about one-quarter of Toshiba’s previous 5.6 trillion yen in annual revenue, is seen as key for the company to turn itself around. AFP
Toshiba president Satoshi Tsunakawa says the company cannot officially disclose its earnings as they are still being audited.