Toshiba America Business Solutions (TABS) last week released the letter below, which appears to seek to reassure customers and partners concerning the current financial difficulties of Toshiba Corporation of Japan.
Because of Toshiba’s financial difficulties – it may be forced to write down several billions of dollars on its U.S. nuclear plant construction company due to cost overruns. There has been speculation that several Toshiba business units may be up for sale, including Toshiba Tec, which makes printers and copier/MFPs. Toshiba owns a 50-percent stake in Toshiba Tec, and Toshiba Tec owns Toshiba America Business Systems (TABS).
The letter is as follows:
Dear Valued Customers, Partners & Employees,
On February 14, 2017, Toshiba Corporation announced that it expects to record a $6.3 billion dollar write down on the value of its US nuclear unit. Due to the complexity of the ongoing discovery process, the company has delayed the release of its audited financial statements until March 14th.
Among the counter measures that the company is exploring is the sale of shares in its flash memory operations.
Your business partner, Toshiba America Business Solutions, Inc. (TABS), while a member of the Toshiba group of companies, is independent both financially and operationally from Toshiba Corporation. As such, the current issues surrounding Toshiba Corporation do not directly affect our ability to service our clients, invest in research and development or operate our business in the world-class manner to which you are accustomed.
TABS is owned in the majority by Toshiba Tec Corporation, an independently operated corporation.
Although Toshiba Corporation is its majority shareholder, Toshiba Tec is publicly traded on the Tokyo Stock Exchange. In fact, since the first announcement of the issues surrounding the nuclear business on December 27th, the value of Toshiba Tec shares has increased by 17% through February 14th.
While we understand that the stream of news surrounding Toshiba Corporation may cause concern, please be assured that TABS is strongly committed to remaining a leading provider of multifunction printers, managed document services and digital signage. We remain strong financially and operationally and are dedicated to continuing our award-winning levels of customer support.
Thank you for your continued support of Toshiba America Business Solutions, Inc.
President and CEO
- February 2017: Canon Acquiring Toshiba Medical Finance in Bid to Grow its Medical-Equipment Business
- February 2017: The Week in Imaging: Toshiba Nuclear Woes & Toshiba Tec; Ricoh Product Refresh; More
- February 2017: Toshiba Delays Financial Report, Chairman Steps Down Over Losses in Nuclear Business
- February 2017: Toshiba May be Considering Selling Toshiba Tec
- December 2016: Canon Acquires Toshiba Medical Systems as it Seeks to Branch Out into New Businesses
- December 2015: Massive Changes Underway at Toshiba, Job Cuts, Toshiba TEC Sale Possible