Epson to Replace Toshiba on Tokyo Stock Exchange

The Nikkei Asia Review of Tokyo, Japan, reports that the Nikkei Stock Exchange announced on July 10th that Seiko Epson will replace Toshiba Corporation as a member of the 225-issue Nikkei Stock Average on August 1st.

Troubled Toshiba will be reassigned to the Tokyo Stock Exchange’s second section in August. Epson’s assumed value per share is set at 25 yen.

Toshiba will be excluded from other Nikkei indexes and replaced by Nexon for the Nikkei 300; Nippon Shinyaku for the Nikkei 500; and Nippon Paint Holdings for the Nikkei China 50.

As Wirth Consulting reported earlier this week, Toshiba is facing an estimated loss of $8.9 billion for its fiscal year that ended in March 2017, and also failed to report its full-year financial results in March as required. It’s currently seeking to cover its billions of dollars in losses from its U.S.-based Westinghouse Electric by selling its Toshiba Memory Corporation, but is being blocked from doing so by Western Digital, a U.S.-based partner in Toshiba Memory Corporation, which has filed a lawsuit seeking to block the sale. Toshiba in return has filed a lawsuit against Western Digital.

For its latest fiscal year that ended on March 31, 2017, Epson reported revenues of ¥1,024.8 billion, down 6.2 percent, but profits up 5.6 percent to ¥48 billion ($430,698 million U.S.), both versus the company’s previous fiscal year. At the time, the firm stated that although “demand for its inkjet printers was stagnant, due to the continuing contraction of the Japanese consumer market and a shrinking of the North American and Western European markets,” there was ”solid demand” for its high-capacity ink-tank inkjet printers, as the entry of other companies had the effect of boosting recognition.

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