Toshiba Reports Results Without Auditor Approval (News)
Tokyo, April 11 (Jiji Press)—Toshiba Corp. finally reported its April–December 2016 results on Tuesday after postponing the release twice due to a probe on internal control issues. The report lacked its auditing firm's approval, however, placing the struggling Japanese electronics and machinery company at a greater risk of stock delisting.
Toshiba failed to obtain approval for the earnings report from the auditing firm, PricewaterhouseCoopers Aarata LLC, by the deadline on Tuesday for submitting the report to the Finance Ministry's Kantō Local Finance Bureau.
Sources stated that the Tokyo Stock Exchange is set to examine whether Toshiba's report meets the criteria for delisting. The TSE has already placed Toshiba stock on alert due to the accounting fraud that has come to light thus far.
At a press conference in Tokyo, Toshiba President Tsunakawa Satoshi stated, "We can't cause any more anxiety and inconvenience to our shareholders," explaining the firm's decision to release its report without the auditor's approval. He also stressed that the probe had not uncovered any information that would require revision to the company's latest earnings figures.
Not announced at the press conference were figures covering the entire fiscal year ending on March 31. Toshiba has suggested that annual net losses may top ¥1 trillion, leaving shareholder equity at negative ¥620 billion at the end of fiscal 2016, following the late March bankruptcy filing by Toshiba's troubled US nuclear subsidiary Westinghouse Electric Co. The company is expected to release its full-year earnings report in mid-May.
Japanese Consortium for Toshiba Unit Seen as Difficult
Tokyo, April 11 (Jiji Press)—The idea of forming a consortium of Japanese companies to invest in Toshiba's flash memory business is difficult to realize, Japanese business leader Kobayashi Yoshimitsu said Tuesday.
"The point is how a profitable scenario can be created" in such an investment, Kobayashi, chairman of the Japan Association of Corporate Executives, or Keizai Dōyūkai, told a press conference.
Toshiba hopes to raise up to ¥2 trillion by selling its flash memory business, one of the bright spots in its holdings, to shore up its battered accounts.[Copyright The Jiji Press, Ltd. Content edited by the Nippon.com editorial team.]