Toshiba Revises Forecast, Expects Net Loss of Almost $1 Billion
Toshiba Corporation reported today that it expects a net loss of nearly $970 million (110 billion yen) for its fiscal year that will end on March 31, 2017 after taking into account taxes related to its proposed sales of its memory-chip business, Toshiba Memory Corporation.
On the positive side of things, in August, the firm had avoided being delisted from the Tokyo Stock Exchange.
Toshiba is expecting to sell Toshiba Memory Corporation for $17.6 billion (2 trillion yen) to a consortium led by private-equity firm Bain Capital, although its partner in the memory business, Western Digital, continues to object to the sale.
Toshiba had previously forecast a profit of 230 billion yen for its fiscal year. Its latest forecast, however, doesn’t expected gains of $17.6 billion (2 trillion yen) it will gain from the sale of the memory business, as it has yet to receive regulatory approval for the sale.
If Toshiba doesn’t sell its memory business, it could end the year with a negative net worth, which might prompt the Tokyo Stock Exchange to delist it. Toshiba’s proceeds from the sale of the memory business are essential in order for Toshiba to cover billions of dollars in liabilities arising from its now bankrupt U.S. nuclear business, Westinghouse. Toshiba reported on October 24th that its board of directors had approved the sale.
Toshiba America Business Solutions is part of Toshiba Business Solutions, and both are subsidiaries of Toshiba TEC, which in turn is a subsidiary of Toshiba Corporation of Tokyo.
- September 2017: Western Digital Seeks Injunction to Stop Sale of Toshiba’s Memory Business
- September 2017: Toshiba Says it Will Sell Memory Business to Consortium Led by Bain Capital
- August 2017: Troubled Toshiba Said to be Close to Selling Memory-Chip Business (Updated)
- August 2017: Toshiba Reports $8.8 Billion Loss for Fiscal Year
- July 2017: Epson to Replace Toshiba on Tokyo Stock Exchange
- July 2017:Toshiba Served with New $83 Million Lawsuit; 28 Lawsuits in Total
- July 2017: Nikkei Demotes Toshiba on Tokyo Stock Exchange; Faces Delisting
- June 2017: Toshiba Sues Western Digital; Fails to Meet Self-Imposed Deadline to Sell Memory Business
- June 2017: Toshiba Being Sued for $399 Million for Accounting Irregularities
- June 2017: Western Digital Seeks to Block Toshiba’s Sale of Memory-Chip Business
- June 2017: Toshiba Determined to Sell Memory-Chip Business Despite Hurdles
- May 2017: Toshiba Not Reporting Audited Full-Year Financial Results at Shareholders’ Meeting
- April 2017: TABS CEO Reassures Clients in Wake of Toshiba Corp. Difficulties