Toshiba posts net loss
Toshiba takes a knock in the first quarter as sales dip to the lowest in more than two years.
|||Tokyo - Toshiba posted a net loss for the first quarter as sales fell to the lowest in two and a half years.
The net loss was 12.3 billion yen ($102 million) for the three months ended June, the Tokyo-based industrial group reported on Monday in a statement. Sales were 1.35 trillion yen, the lowest since the quarter ended December 2012.
Toshiba is releasing its second earnings report in as many weeks after delaying results amid an accounting scandal. President Masashi Muromachi this month pledged a “bold restructuring” of its chipmaking and lifestyle divisions after reporting an annual loss and restating six years’ worth of earnings.
On September 7, months after the initially scheduled filing, Toshiba reported a net loss of 37.8 billion yen for the 12 months ended March, compared with revised net income of 60.2 billion yen a year earlier.
The company plans an extraordinary general meeting on September 30 and has said it intends to give a forecast for the current fiscal year in October.
Toshiba’s chip business has been its most profitable, with the electronic devices and components division accounting for more than 100 percent of operating income in the year ended March 2015. Its lifestyle segment, which includes PCs, televisions and home appliances, accounted for an operating loss of about 110 billion yen in the year.
Fines provision
The industrial group has set aside 8.4 billion yen to cover possible fines related to the accounting irregularities.
Investigations by the financial regulator into Toshiba’s financial records will continue, Japan’s Chief Cabinet Secretary Yoshihide Suga said on September 7. The company’s failure to provide correct information was “a big problem”, he said.
No charges have been filed and the regulator has yet to impose any fines.
Toshiba shares fell 2.1 percent to 314.80 yen on Monday in Tokyo. The shares have dropped 39 percent this year, compared with a 3.9 percent gain for the Topix index.
BLOOMBERG