Troubled Toshiba Fails to Submit Audited Third-Quarter Earnings Report

Toshiba Corp. Satoshi CEO Tsunakawa bows at the start of a news conference at company’ headquarters in Tokyo.

Toshiba Corporation of Tokyo, Japan, today filed for a further extension to submit audited third-quarter earnings/ Toshiba had previously received approval for an extension to report its earnings for its third-quarter – which was from October 1 to December 31, 2016 – for today, March 14th. Toshiba is seeking to extend its earnings report to April 11th. If doesn’t meet that deadline and doesn’t get another extension it would have until April 21 to submit the earnings, or be de-listed from the Tokyo stock exchange.

The firm is expanding an accounting probe into problems at its U.S. nuclear unit, Westinghouse, and is considering selling a majority of its stake in Westinghouse, as it also seeks to reassure investors it could be a viable company without its nuclear business or memory-chip business, which it’s been put up for sale.

Toshiba has said that its auditing committee had confirmed that some Westinghouse senior managers had exerted “inappropriate pressure” in Westinghouse accounting in anticipation of a potential sell-off of Westinghouse. Toshiba is now also said to be checking “if other inappropriate pressures” were exerted in preceding quarters, it said in a statement.

Last month, Bloomberg News reported that the conglomerate may be seeking to sell more assets in order to “repair a balance sheet facing multi-billion-dollar write-downs.” Among the businesses Toshiba may be consider selling is Toshiba Tec, which manufactures printers and copier/MFPs, and is a publicly traded subsidiary of Toshiba Corporation. Toshiba is said to have a 55-percent holding in Toshiba Tec, and its holding is said to be worth about 100 billion yen.

Also last month, Toshiba America Business Solutions (TABS) President and CEO Scot Maccabe sent a letter to clients and partners seeking to reassure them in the midst of Toshiba Corporation’s difficulties, noting: “Our 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.”

Update: According to Nasdaq, on March 12th, Toshiba Corporation officials said that it was “not true” that it was considering selling its shares in Toshiba Tec.

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