Published on April 11th, 2017 | by The GC Team0
Toshiba’s survival in “substantial doubt” following latest losses
Toshiba, once a leading global brand in consumer electronics, has announced unaudited financial results for the period April-December 2016 showing losses of 532 billion Yen (£3.8 billion), and has warned that its survival as a going concern is under threat.
In a statement accompanying the figures, which have already been delayed twice and have still not been signed off by auditors PriceWaterhouseCooper Aarata, the company said: “ … there are material events and conditions that raise substantial doubts about the company’s ability to continue as a going concern.”
Toshiba has faced a number of substantial problems over the past few years. In 2015 the company was found to have overstated its profits by US$1.2 billion (£1.48 billion) over the previous seven years, and in the ensuing scandal the chief executive and several senior managers resigned.
Earlier this year Westinghouse, Toshiba’s nuclear business in the US, got into financial difficulties, and in March was placed in Chapter 11 bankruptcy protection.
This latest set of figures have been published without the approval of the auditors, since they have already been subject to delay and Toshiba decided to publish them anyway to avoid missing a deadline and falling foul of Tokyo Stock Exchange rules. Under these circumstances, it is possible the company could be delisted.
There are recent reports that Foxconn, the Taiwanese manufacturer, has shown interest in acquiring Toshiba’s chip business for a sum of between £21 and £22 billion, but even if this deal went ahead it is difficult to see how the company could avoid being broken up and sold off piecemeal.