Toshiba Reports $5.9 Billion Loss, Warns of Ability to Continue as Going Concern
Toshiba Corporation of Tokyo, Japan, warned this week that there is “substantial doubt” about whether it will be able to continue as a going concern after it reported a net loss of 648 billion yen ($5.9 billion) this week for its nine-month fiscal period that ended in December 2016, after twice missing deadlines to report earnings. Since its auditor, PricewaterhouseCoopers, also failed to approve Toshiba’s earnings’ report, there is also a possibility that Toshiba may be delisted.
Toshiba’s financial difficulties began with the collapse of its American nuclear business, Westinghouse Electric, which filed for U.S. bankruptcy protection last month.
The firm notes that, aside from its nuclear business, almost all other segments improved their profitability. Although sales for its Retail and Printing Solutions group were down 32.2 percent compared to the same period a year earlier, operating income was up 73.9 percent, versus a loss for the previous period.
This past February, Toshiba Corporation’s Toshiba TEC, an independently operated corporation, reported that net sales were down 7.5 percent for the nine-month period, but operating income was up 220.2 percent. Toshiba TEC is the majority owner of Toshiba America Business Solutions (TABS), and, while at one point some sources said that Toshiba Corporation may be considering selling Toshiba TEC, Toshiba has said that it likely will not do so.
Toshiba Corporation has put its memory-chip unit up for sale, with possible suitors including Taiwan’s Hon Hai Precision Industry (also known as Foxconn), South Korea’s SK Hynix, and chipmaker Broadcom, all of which are said to have submitted preliminary bids.
- March 2017: Toshiba Approves Sale of Chip Business; Foxconn May be Bidder
- March 2017: Troubled Toshiba Fails to Submit Audited Third-Quarter Earnings Report
- February 2017: Toshiba America Business Solutions Seeks to Reassure Customers, Partners Amid Toshiba Financial Difficulties
- February 2017: Toshiba Delays Financial Report, Chairman Steps Down Over Losses in Nuclear Business
- February 2017: Toshiba May be Considering Selling Toshiba Tec