Toshiba drops $2.8B in market value

Toshiba Corp. lost $2.8 billion in market value after the industrial and electronics group withdrew its earnings forecast pending an internal probe into improper accounting on infrastructure projects.

The shares fell 17 per cent, the biggest drop since March 2011.

The company announced it was extending an accounting probe and withdrawing its earnings forecast for last fiscal year on May 8.

Toshiba, which makes nuclear reactors, computer memory chips and consumer electronics and controls Westinghouse Electric Co., also said it may have to revise earnings from fiscal year 2013 and earlier.

The announcement follows an April 3 statement in which the company said it was investigating possible accounting problems.