Belfast Telegraph

Toshiba's future in balance as it faces £3.9bn losses

By Ben Woods

Toshiba has warned over a potential collapse as it revealed soaring losses in a financial update that was not signed off by its auditors. The embattled firm deepened net income losses by 53.1bn yen (£386m) to 532.5bn yen (£3.9bn) in the nine months ending in December last year.

It also warned that its annual losses could add up to more than one trillion yen for last year, which would be one of the biggest losses in Japanese corporate history.

In a statement alongside its unaudited figures, Toshiba said: "There are material events and conditions that raise substantial doubt about the company's ability to continue as a going concern."

The Japanese electronics giant's failure to publish audited accounts for the third quarter, October and December, comes after its US nuclear engineering firm Westinghouse filed for Chapter 11 bankruptcy protection in March.

Auditor PricewaterhouseCoopers Aarata has been unable to sign off the figures because of uncertainties over Westinghouse's takeover of nuclear construction company CB&I Stone and Webster in 2015.

Failure to file audited accounts by Tuesday has fuelled speculation that the company could be kicked out of the Tokyo Stock Exchange.

President Satoshi Tsunakawa apologised for the problems facing the firm, but said he did not foresee a need for any dramatic revisions in the earnings report.

Belfast Telegraph