NEWS

Toshiba Likely to Post $4 Billion Net Loss in Current Fiscal Year

Monday, Dec 21, 2015

Toshiba Corp. is likely to post a net loss of roughly ¥500 billion ($4.1 billion) in the current fiscal year because of heavy restructuring costs after an accounting scandal, a person familiar with the matter said.

Toshiba is set to disclose plans to restructure money-losing businesses Monday.

The company’s unit focusing on consumer products, such as personal computers and televisions, has long been troubled and posted an operating loss of ¥42.5 billion in the first half of the fiscal year, which ended Sept. 30.

Separately, Toshiba President Masashi Muromachi in November said the company might sell a stake in its semiconductor unit, which had been making steady profits by supplying flash-memory chips to smartphone makers but has run into trouble more recently.

The person familiar with Toshiba’s plans said the restructuring plans, which are likely to include asset writedowns and one-time costs for reducing the workforce, are expected to result in a net loss of approximately ¥500 billion for the fiscal year, which ends March 2016.

A Toshiba spokesman, responding to reports about the projected loss in Japanese media, said the number wasn't something announced by the company and declined to comment further.

Toshiba has been on a steady downward track this year after news first emerged in April of accounting irregularities. The company acknowledged in July that it had overstated profits by more than ¥150 billion over seven years, and then-President Hisao Tanaka resigned.

The company’s share price, which topped ¥500 in March, closed Friday at ¥283. Toshiba had ¥1.54 trillion in interest-bearing debt as of Sept. 30.

 

wsj.com

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