I told you it was coming:
Toshiba, Facing $4.5 Billion Loss, Plans Deep Cuts
Toshiba has been racked this year by one of Japan’s biggest accounting scandals, which has morphed into a broader crisis affecting nearly all its major units. Its shares plunged 10% Monday and have lost more than half their value since March.
Scandal-racked company hopes to sell a majority stake in its health-care division and expects to cut 7,800 jobs
Toshiba has been racked this year by one of Japan’s biggest accounting scandals, which has morphed into a broader crisis affecting nearly all its major units. Its shares plunged 10% Monday and have lost more than half their value since March.
The company earlier said it was seeking investors for its Westinghouse nuclear subsidiary and its semiconductor business, and it is talking with Fujitsu Ltd. FJTSY -3.88 % about a possible merger of personal-computer units.
Deepening problems in the company’s consumer electronics business are one reason for the losses, but tough market conditions for the company’s mainstay nuclear and semiconductor operations are also playing a role. Toshiba said sales would fall by 7% this year and projected an operating loss at its semiconductor unit, which has been hit by a slowdown in China and weaker growth in global smartphone sales.
In the nuclear business, Toshiba’s Westinghouse subsidiary has struggled to win new orders for reactors since the Fukushima Daiichi plant disaster in Japan in 2011.
So Toshiba (Westinghouse/new Vogtle) is undergoing profound restructuring after their phoney financial disclosures. I just don't trust the Japanese(nuclear)after Fukushima and San Onofre steam generators.
Basically Toshiba says their nuclear division is very profitable and at times carried all of the giant corporation. I just think the nuclear industry have become too dependant on the behemoths, they gouge the hell and overcharge the utilities. They grossly overcharge the utilities and they provide poor quality services without fear of reprisal.
So why has the US nuclear industry placed themselves in this weakened and powerless position...
I get it, the cheapest price always wins out. Why is the nuclear industry so desperate?
Just think about it, when is Toshiba going spin off their highly profitable nuclear sector?
Toshiba likely to suffer huge net loss in fiscal 2015Kyodo
Toshiba Corp. expects a record group net loss of around ¥500 billion for the business year ending in March, as it makes greater efforts to streamline operations following its profit-padding scandal, a company source said Saturday.
The net loss, which will balloon from ¥37.8 billion for the previous year, will eclipse the current record of ¥398.8 billion logged in the year through March 2009 in the aftermath of the global financial crisis. Its operating loss for fiscal 2015 is expected to top ¥200 billion, against a profit of ¥170.4 billion for fiscal 2014, according to the source.
Slated to announce Monday a restructuring plan for its home electronics business, including white goods, televisions and personal computers, the company will also unveil its earnings outlook for the current fiscal year, which has so far been withheld.
As part of its restructuring efforts, the company is considering slashing several thousand jobs both at home and abroad, including some 1,000 jobs in Japan, sources familiar with the matter said.
Toshiba is considering downsizing its Ome complex in western Tokyo, which is engaged in TV and PC development, according to the sources.
It is expected to sell its TV plant in Indonesia while transferring a factory in Egypt to its local joint venture partner El Araby Group to pull out of TV production on its own.
Toshiba is also considering merging its PC business with those of Fujitsu Ltd. and Vaio Corp., which was spun off from Sony Corp. last year. Toshiba’s white goods operation may be sold to Sharp Corp. under another plan.
The scandal, in which Toshiba repeatedly padded profits by deferring the booking of losses in infrastructure, semiconductor and PC businesses, has led the firm to revise downward its profits totaling ¥224.8 billion on a pretax basis from April 2008 to December 2014.
In a related development, the Financial Services Agency, Japan’s financial watchdog, is arranging to prohibit Toshiba’s corporate auditor from taking new contracts for three months for negligence and failure to uncover the accounting irregularities, another source said the same day.
Ernst & Young ShinNihon LLC will also face about ¥2 billion in surcharges, the first case under the revised Certified Public Accountants Law that took effect in 2008 following another accounting scandal, plus an order to improve its business, the source said.
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