08-09-2015, 09:30 AM
A company with 140-year of history, will be delisted, and downed...?
Toshiba posts 7-year earnings loss, revamps board for the future
TOKYO — Japan’s Toshiba booked a net loss for the past financial year and pledged to improve governance with a revamped board of directors, raising hopes it is finally moving beyond a US$1.3 billion (S$1.9 billion) accounting scandal.
The submission of its books, twice postponed due to its accounting woes, helped to allay concerns among some investors that the conglomerate risked a delisting if it had missed its latest filing deadline.
Shares in Toshiba closed up 1.8 per cent yesterday. They have dropped by 31 per cent this year. Analysts also noted the company still had to tackle deeply rooted problems.
“Toshiba is still facing a number of daunting issues, such as what to do with its unprofitable PC and TV businesses,” said Mr Hiroyasu Nishikawa, a senior analyst at IwaiCosmo Securities, adding that its accounting woes were set to drag on due to shareholder lawsuits.
For the past financial year, it reported a ¥37.8 billion (S$452 million) net loss. It had at one time expected a ¥ 120 billion net profit before pulling that estimate in May when it announced the accounting probe was being expanded.
All in all, Toshiba said it had overstated profits going back to fiscal 2008/09 by ¥155 billion.
The accounting probe found in July that Toshiba suffered from dysfunctions in governance and a culture of discouraging employees from questioning their superiors, prompting the company’s chief executive and several other board members to step down.
The firm’s accounting scandal is Japan’s biggest since 2011, when camera- and medical device-maker Olympus was found to have been involved in a US$1.7 billion scheme to conceal two decades of investment losses. Olympus was subsequently fined ¥700 million, and some former executives were handed suspended jail sentences.
Reuters
http://www.todayonline.com/tech/toshiba-...ard-future
The history of the company here
https://www.toshiba.co.jp/worldwide/abou...rofile.pdf
Toshiba posts 7-year earnings loss, revamps board for the future
TOKYO — Japan’s Toshiba booked a net loss for the past financial year and pledged to improve governance with a revamped board of directors, raising hopes it is finally moving beyond a US$1.3 billion (S$1.9 billion) accounting scandal.
The submission of its books, twice postponed due to its accounting woes, helped to allay concerns among some investors that the conglomerate risked a delisting if it had missed its latest filing deadline.
Shares in Toshiba closed up 1.8 per cent yesterday. They have dropped by 31 per cent this year. Analysts also noted the company still had to tackle deeply rooted problems.
“Toshiba is still facing a number of daunting issues, such as what to do with its unprofitable PC and TV businesses,” said Mr Hiroyasu Nishikawa, a senior analyst at IwaiCosmo Securities, adding that its accounting woes were set to drag on due to shareholder lawsuits.
For the past financial year, it reported a ¥37.8 billion (S$452 million) net loss. It had at one time expected a ¥ 120 billion net profit before pulling that estimate in May when it announced the accounting probe was being expanded.
All in all, Toshiba said it had overstated profits going back to fiscal 2008/09 by ¥155 billion.
The accounting probe found in July that Toshiba suffered from dysfunctions in governance and a culture of discouraging employees from questioning their superiors, prompting the company’s chief executive and several other board members to step down.
The firm’s accounting scandal is Japan’s biggest since 2011, when camera- and medical device-maker Olympus was found to have been involved in a US$1.7 billion scheme to conceal two decades of investment losses. Olympus was subsequently fined ¥700 million, and some former executives were handed suspended jail sentences.
Reuters
http://www.todayonline.com/tech/toshiba-...ard-future
The history of the company here
https://www.toshiba.co.jp/worldwide/abou...rofile.pdf