Published: Wed, April 12, 2017
Markets | By Erika Turner

Troubled Toshiba reports unaudited results after 2 delays

Troubled Toshiba reports unaudited results after 2 delays

Toshiba said late on Tuesday that it suffered a net loss of 532.5 billion yen ($4.81 billion) for the April-December period of previous year, leaving it with a negative net worth of 225.7 billion yen.

Financial regulators granted it more time on two occasions as Toshiba grappled with a series of problems at its Westinghouse Electric nuclear division, which filed for bankruptcy protection in the U.S. last month.

Toshiba released a third quarter earnings report Tuesday after delaying twice before, but its auditor did not endorse the report, bringing up questions about possible delisting from the Tokyo Stock Exchange.

Toshiba's auditor reportedly found that the alleged wrongdoing had been going on for longer than previously thought, which could mean revising earlier financial statements.

The refusal by auditor PwC Aarata to sign off on Toshiba's earnings report is another embarrassing blow for the Japanese conglomerate, which is trying to reassure creditors and shareholders that it can survive its current crisis.

Toshiba has been at odds with its auditors over internal controls at its Westinghouse nuclear unit.

"It's likely that the company's financial situation will turn severe" owing to problems at Westinghouse, it said in a Japanese-language statement released with the results.

Separately, Taiwan's Foxconn has offered up to 3 trillion yen (US$27 billion) for Toshiba's chip business, almost US$10 billion higher than Toshiba's own estimate, the Wall Street Journal reported, citing people familiar with the matter.

Toshiba has seen its earnings hit by surging costs linked to the Fukushima Daiichi nuclear plant, which sank into multiple meltdowns after the 2011 tsunami in north-eastern Japan.

Airstrikes on Syria might also send message to North Korea
A USA official said Wednesday's missile test ended in failure when the rocket spun out of control and plunged into the ocean. The post North and South Korea women face off in Pyongyang football match appeared first on Vanguard News.

"This evaluation process was continuing at the time of the reporting", it said in the statement.

The decision on whether or not to delist Toshiba now rests with the TSE.

They fell 2.69% to finish at 223.5 yen on Tuesday, before the results.

The group, which is reeling from its worst ever financial crisis because of far-reaching problems at its USA nuclear subsidiary Westinghouse, took the unusual step of publishing unaudited accounts for the three months to 31 December. KazAtomProm, Kazakhstan's state-run uranium producer, is entitled to sell its 10% equity holding in Westinghouse pursuant to put option agreements that can be exercised on or after 1 October, Toshiba has said.

On the other hand, Turkish electronics manufacturer Vestel said it is in talks to buy Toshiba's TV unit.

Trading volume for Toshiba shares reached 59.2 billion yen - the highest for all shares listed on the TSE's first section.

"Toshiba could move back into solvency depending on how it proceeds with the Toshiba Memory sale", Credit Suisse Group AG's Tokyo-based analysts Hideyuki Maekawa and Yoshiyasu Takemura wrote in a report.

A spokesperson for the Department for Business, Energy and Industrial Strategy said the government was talking to potential investors.

Like this: