Profit up Sharply for Toshiba TEC, but Profit Padding at Subsidiary Reported
Toshiba TEC of Tokyo, Japan, which makes retail printing solutions and copier/MFPs, reported higher sales and net income, but, according to NHK World, the company reported that staff based at a subsidiary in Germany padded profits to the tune of some $5 million.
Toshiba TEC said that three executives at the subsidiary’s branch in Spain under-reported costs incurred, with the executives including the deputy chief of the branch.
Toshiba TEC executives said that the illegal accounting practice had gone on for 9 years, from 2009 until last year. The padded profits were disclosed when an official in charge of financial affairs was replaced in July 2017.
Meanwhile, for the nine-month period that ended on December 31, 2017, Toshiba TEC reported that net sales were up 2.0 to 371,933 million yen, while profits 11,766 million yen, up 136.8 percent, both versus the same nine-month period a year earlier.
Toshiba TEC makes and sells desktop and mobile printers, RFID printers, and consumables; color and monochrome copier/MFPs, as well as paper reusing systems; inkjet print heads, and mobile and cloud solutions.
Toshiba Business Solutions is part of Toshiba America Business Solutions, both of which are subsidiaries of Toshiba TEC. Toshiba Corporation is the majority shareholder of Toshiba TEC.
- May 2017: Toshiba Tec Rolls Out World’s First Copier/MFP with Erasable Print Capability
- April 2017: Toshiba Tec Claims Largest Share in China’s A3 MFP Market