For the nine months through December, Toshiba, a laptops-to-construction behemoth, reported deeper losses than previously estimated due to writedowns at US nuclear subsidiary Westinghouse Electric Co.
Japan's Toshiba Corp filed twice-delayed business results on April 11 without an endorsement from its auditor, increasing the likelihood that the nuclear-to-TVs conglomerate will be delisted. But the Japanese company has warned that dumping Westinghouse could drag it to a net loss of 1 trillion yen ($9 billion) for the fiscal year that ended in March.
Toshiba has failed to file audited earnings for the three months through December, as the accountants question the numbers at US nuclear subsidiary Westinghouse Electric Co, where massive cost overruns have pushed the Japanese parent company to the brink.
Toshiba's troubles are also casting doubt over the planned Moorside nuclear power station in Cumbria, where it is due to provide the three reactors.
The earnings release may give Toshiba some breathing room, but its embattled stock could still be delisted depending on the results of its probe into the alleged wrongdoing.
The unaudited results showed the troubled firm lost 532.5 billion yen in April-December.
But in an unprecedented move for a major Japanese company, Toshiba filed the report without the approval of its outside auditors.
Shares in Toshiba dropped 5.4 percent early on Tuesday.
Gordon Ramsay Doesn't Let His Kids Fly in First Class
Gordon Ramsay will not pass on his fortune to his children in case it spoils them. Gordon was born in Glasgow and brought up in Stratford-upon-Avon.
Accountants have been questioning the numbers at U.S. nuclear subsidiary Westinghouse Electric Co, where massive cost overruns at four nuclear reactors under construction in the Southeastern United States have forced its Japanese parent to estimate a US$9bil (RM39.9bil) annual net loss and take drastic measures. CEO Satoshi Tsunakawa has said he expects the unit to fetch at least 2 trillion yen ($18 billion).
Toshiba declined to comment and Foxconn, formally known as Hon Hai Precision Industry, was not immediately available to comment.
Westinghouse's bankruptcy filing has raised questions about what will happen to the storied USA company.
It is under pressure to raise cash to cover its financial woes to the extent that it may sell its flagship memory chip business - the second-largest in the world behind Samsung.
Toshiba says it will have no influence over who buys its majority stake in Westinghouse.
In March, it was reported that Toshiba was preparing a potential $2bn divestment of the Swiss-based business.
That sale process could fuel concerns in the USA government, which reportedly wants to ensure domestic nuclear capabilities don't end up being bought by a Chinese firm.
Comments