Toshiba says it is struggling to survive

Posted on Tuesday, Apr 11 2017 @ 16:07 CEST by Thomas De Maesschalck
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After two delays, Toshiba finally filed its third-quarter financial results earlier today but it warned investors that there are "material events and conditions that raise substantial doubt about the company's ability to continue as a going concern". Curiously, the results were not audited by the company's auditor, PricewaterhouseCoopers Aarata, and Toshiba says it has still not fully determined the full cost of restructuring Westhinghouse.

Full losses for the year could top 1 trillion yen ($9.05 billion) and the company's shareholder equity heading deeper into the negative territory. An accounting scandal as well as the Chapter 11 bankruptcy of the Westinghouse nuclear division put Toshiba in severe trouble. This is pushing Toshiba to sell its chip division, which includes its profitable NAND flash memory crown jewels.
Toshiba said that while it had not yet fully determined the full cost of restructuring Westinghouse, its calculations suggested net income would fall by roughly 620bn yen.

There is also a risk the value of shareholders' equity could fall even further - potentially down to -620bn yen from -150bn yen announced in February.
Toshiba said it will do whatever is in its power to prevent a stock delisting by the Tokyo Stock Exchange (TSE).

Via: Telegraph


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Thomas De Maesschalck

Thomas has been messing with computer since early childhood and firmly believes the Internet is the best thing since sliced bread. Enjoys playing with new tech, is fascinated by science, and passionate about financial markets. When not behind a computer, he can be found with running shoes on or lifting heavy weights in the weight room.



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