Published on February 14th, 2017 | by The GC Team0
Toshiba warns of 390 billion yen (£4.25 billion) net loss for year to March 2017
Mr Shigenori Shiga, chairman of Toshiba, has resigned following the Japanese company’s forecast of a net £4.25 billion loss for the year to March 2017, citing an expected £5 billion writedown of assets in its US nuclear business as one of the principal factors.
Toshiba US subsidiary Westinghouse Electric bought a nuclear construction and services business from Chicago Bridge & Iron in 2015, and the purchased assets are now likely to be worth less than the initial valuation.
Toshiba, still suffering from revelations in 2015 that it had been overstating profits for seven years, is raising funds by selling part of its profitable memory chip business – the second largest in the world after Samsung. The company, once a powerful brand in consumer electronics, has already cut its interests in TV manufacturing and concluded a number of global brand licensing deals.
Shares have fallen by some 50% in the past two months, and lost up to 9% in early trading today.
Some commentators are now predicting that the future of the company may be “at risk.”