Toshiba annual results are late. The company missed the May 15 deadline, although the company has warned that it would probably file a 950 billion yen loss (£8.4bn, £6.5bn).
Toshiba stated in April that there were doubts as to the future of the company. It has suffered from several difficult issues over the past couple of years. Several senior managers resigned in 2015, include the company’s CEO. This was over an accountancy scandal where the firm had inflated the profits for the previous seven years by $1.2 billion.
In December, Toshiba shared dropped over 40% in three days after the company reported its US Westinghouse nuclear subsidiary was due to report a lose of $4.3 billion. It stated in January that NAND, the company’s computer and smartphone memory chip unit, would be split off and part of it sold to raise funds, and that Westinghouse was in trouble.
However, Toshiba’s chip business is jointly run with Western Digital, a US based company. Western Digital has recently filed with the International Court of Arbitration to prevent the sale meantime.
In February, the firm stated that its Oct – Dec 2016 (third-quarter) earnings report would be late and Chairman Shigenori Shiga resigned. The company also warned that it would lose $6.3 billion because of losses at Westinghouse. In March, Toshiba missed a second date for filing Oct – Dec results and Westinghouse filed for Chapter 11 bankruptcy protection. This enables the company to restructure without creditor action.
Finally, in April, Toshiba published its 2016 third-quarter earnings without auditory approval. It also made a statement that the future of the company was in doubt. Then, as stated above, it missed the annual results deadline.
The Toshiba chip business is the second largest in the world. Its demise would affect a number of businesses, but this may be averted with the sale of its chip business, or at least part of it. However, Western Digital would likely have to agree.
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