TOSHIBA POSTS US$8.8B LOSS

Au­di­tor is­sues qual­i­fied opinion on com­pany’s fi­nan­cial state­ments, says they are ‘mostly ap­pro­pri­ate’

New Straits Times - - Business -

TOSHIBA Corp yes­ter­day met a loom­ing dead­line to re­port its long-de­layed fi­nan­cial results, say­ing it lost around US$8.8 bil­lion (RM37.6 bil­lion) in the last fis­cal year over its hard­hit United States nu­clear unit West­ing­house Elec­tric.

The move by one of Ja­pan’s best-known firms greatly re­duces the chance of an em­bar­rass­ing delist­ing from the Tokyo Stock Ex­change.

But the trou­bled com­pany is still on shaky ground as it faces a court bat­tle to sell off its prized mem­ory chip busi­ness for around US$18 bil­lion — the sale is seen as cru­cial to its turn­around.

There were grow­ing wor­ries that Toshiba might not make yes­ter­day’s dead­line to sup­ply fi­nan­cial state­ments for the fis­cal year ended in March, as it was at odds with its au­di­tor over multi-bil­lion dol­lar losses at West­ing­house.

Toshiba had re­peat­edly de­layed the re­lease of its fi­nan­cial state­ments, say­ing it needed more time to gauge the im­pact of West­ing­house on its bal­ance sheet.

The mas­sive losses at the divi­sion — largely ow­ing to de­lays and cost over­runs — have raised doubts about the fu­ture of Toshiba, which is still re­cov­er­ing from a 2015 ac­count­ing scan­dal.

How­ever, the au­di­tor, Pricewater­house­Coop­ers Aarata, is­sued a qual­i­fied opinion on Toshiba’s state­ments yes­ter­day, say­ing they were “mostly ap­pro­pri­ate”.

The com­pany said it had a net loss of 965.7 bil­lion yen (RM37.6 bil­lion) for the fis­cal year ended March 31 but said would swing back to prof­itabil­ity in the cur­rent fis­cal year.

Ear­lier this month, the com­pany’s shares were de­moted from the pres­ti­gious first sec­tion of the Tokyo Stock Ex­change over in­ad­e­quate in­ter­nal con­trols.

It still needs to get it­self out of a neg­a­tive net worth by March next year to avoid be­ing delisted.

“Toshiba has made one pos­i­tive step for­ward to avoid the im­mi­nent risk of be­ing delisted,” said Makoto Sen­goku, a mar­ket an­a­lyst at Tokai Tokyo Re­search Cen­tre. AFP

BLOOMBERG PIC

Toshiba Corp, one of Ja­pan’s best-known firms, has greatly re­duced the chance of a delist­ing from the Tokyo Stock Ex­change af­ter re­leas­ing its long-de­layed fi­nan­cial results yes­ter­day.

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