 "Toshiba reports $6.2-bn loss")
Toshiba Corp posted a wider-than-forecast operating loss after the troubled electronics conglomerate wrote down the value of its Westinghouse power unit.
The preliminary operating loss was 690 billion yen ($6.2 billion ) in the 12 months ended March, compared with a forecast loss of 430 billion yen, the Tokyo-based company said Tuesday. Analysts were projecting, on average, a loss of 417 billion yen, according to estimates compiled by Bloomberg.
Toshiba, which makes everything from computers to nuclear power equipment, is trying to recover from an accounting scandal that has forced the sale of assets and executive resignations. Last month, the Tokyo-based company predicted a return to profit in the current fiscal year, after narrowing the scope of its businesses. The company agreed to sell its medical unit to Canon Inc, home-appliance business to China's Midea Group Co and is considering letting go of its personal-computer operations. Total sales were 5.5 trillion yen for the fiscal year, below the company's earlier forecast for 6.2 trillion yen.
Toshiba has been facing questions about accounting of its nuclear business, particularly on how it booked losses in past years. Toshiba said on Tuesday that it is taking an impairment charge of 260 billion yen on Westinghouse, which makes up part of Toshiba's nuclear business.
The shares of Toshiba fell 1.7 per cent to 242 yen at the close in Tokyo. The stock is down 3.2 per cent this year, compared with an 8.8 per cent drop in the Nikkei 225 Stock Average. The preliminary net loss was 470 billion yen, narrower than the 710 billion yen the company forecast in February. The sale of the medical unit bolstered income by 380 billion yen, Toshiba said.
Toshiba has also been in discussions with Fujitsu Ltd and Vaio Corp, the personal computer maker spun off from Sony Corp in 2014, on a possible merger of their PC operations.
While Toshiba is still considering all options for the business, the talks are back to a clean slate, Toshiba President Masashi Muromachi said at a briefing at the company's headquarters.
Muromachi took over as president temporarily in July after three of his predecessors stepped down amid the accounting scandal. Toshiba has convened a committee composed of outside directors to decide on his replacement and the decision is expected by May 12, he said.
"We have yet to stabilise our financial grounding," Muromachi said. "We still have to consider our capital policy. Another task is asset sales."
The preliminary operating loss was 690 billion yen ($6.2 billion ) in the 12 months ended March, compared with a forecast loss of 430 billion yen, the Tokyo-based company said Tuesday. Analysts were projecting, on average, a loss of 417 billion yen, according to estimates compiled by Bloomberg.
Toshiba, which makes everything from computers to nuclear power equipment, is trying to recover from an accounting scandal that has forced the sale of assets and executive resignations. Last month, the Tokyo-based company predicted a return to profit in the current fiscal year, after narrowing the scope of its businesses. The company agreed to sell its medical unit to Canon Inc, home-appliance business to China's Midea Group Co and is considering letting go of its personal-computer operations. Total sales were 5.5 trillion yen for the fiscal year, below the company's earlier forecast for 6.2 trillion yen.
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"Toshiba is facing a risk of becoming undercapitalised," said Hideki Yasuda, an analyst at Ace Research Institute in Tokyo. "The nuclear and semiconductor operations remain unstable, presenting an ongoing business risk."
Toshiba has been facing questions about accounting of its nuclear business, particularly on how it booked losses in past years. Toshiba said on Tuesday that it is taking an impairment charge of 260 billion yen on Westinghouse, which makes up part of Toshiba's nuclear business.
The shares of Toshiba fell 1.7 per cent to 242 yen at the close in Tokyo. The stock is down 3.2 per cent this year, compared with an 8.8 per cent drop in the Nikkei 225 Stock Average. The preliminary net loss was 470 billion yen, narrower than the 710 billion yen the company forecast in February. The sale of the medical unit bolstered income by 380 billion yen, Toshiba said.
Toshiba has also been in discussions with Fujitsu Ltd and Vaio Corp, the personal computer maker spun off from Sony Corp in 2014, on a possible merger of their PC operations.
While Toshiba is still considering all options for the business, the talks are back to a clean slate, Toshiba President Masashi Muromachi said at a briefing at the company's headquarters.
Muromachi took over as president temporarily in July after three of his predecessors stepped down amid the accounting scandal. Toshiba has convened a committee composed of outside directors to decide on his replacement and the decision is expected by May 12, he said.
"We have yet to stabilise our financial grounding," Muromachi said. "We still have to consider our capital policy. Another task is asset sales."