Troubled Toshiba misses annual results deadline

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Toshiba has missed a deadline to file its annual results, but warned it was likely to report a loss of 950bn yen ($8.4bn; £6.5bn).

The Tokyo Stock Exchange had given the Japanese giant until 15 May to report, but Toshiba said its auditors were still examining the figures.

The estimated loss for the year to the end of March is slightly less than it had predicted last month.

In April, the firm admitted its future may be in doubt.

Toshiba, originally known for its consumer electronics products, has faced a series of difficulties.

An accounting scandal, uncovered in 2015, led to the resignation of several members of the firm’s senior management, including the chief executive, after the company was found to have inflated the previous seven years’ profits by $1.2bn.

Problems came to a head again in January this year, when it became clear its US nuclear unit, Westinghouse, was in financial trouble.

Media captionWhy is Toshiba on the ropes?

Westinghouse was put into Chapter 11 bankruptcy in March, which protects it from creditors while it undergoes restructuring.

Toshiba is the world’s second-largest chip manufacturer, with its products used in data centres and consumer goods worldwide, including iPhones and iPads.

It is widely expected to sell its computer chip business, in a move which could help shore up the losses.

But US-based Western Digital, which jointly runs Toshiba’s main chip operations in Japan, has filed a request with the International Court of Arbitration to stop the sale going ahead.


Toshiba’s troubles

Feb 2006: The Japanese giant, famous for consumer electronics, buys US nuclear firm Westinghouse

Mar 2011: The Fukushima disaster makes nuclear power a much harder sell around the globe

Jun 2015: Toshiba is found to have inflated its financial results by $1.2bn over the previous seven years

Dec 2016: The company warns that its Westinghouse subsidiary is set to lose $4.3bn. Toshiba’s share price falls by more than 40% over three days

Jan 2017: Toshiba says the unit that makes memory chips for smartphones and computers – NAND – will be split off so it can sell a slice to raise funds

Feb 2017: Toshiba delays reporting its Q3 earnings (Oct-Dec 2016). Chairman Shigenori Shiga resigns. And the company says it will take a $6.3bn hit due to losses at its US nuclear unit

Mar 2017: The company misses a second scheduled date for filing its Q3 results. Westinghouse files for Chapter 11 bankruptcy protection

Apr 2017: Toshiba finally puts out its Q3 results, without the stamp of approval from its auditors, with a warning that its future may be in jeopardy

May 2017: The firm misses a deadline to publish results for the year to March 2017 but estimates losses will be 950 billion yen ($8.4bn; £x.xbn).

Article source: http://www.bbc.co.uk/news/business-39918699

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