Tags: toshiba | earnings | report

Toshiba Earnings Report Disclaimer Isn't a Good Sign

Image: Toshiba Earnings Report Disclaimer Isn't a Good Sign

Toshiba's earnings report was not endorsed by its auditor. (Claudiu Marius Pascalina/Dreamstime.com)

By    |   Tuesday, 11 Apr 2017 02:17 PM

Toshiba released a third quarter earnings report Tuesday after delaying twice before, but its auditor did not endorse the report, bringing up questions about possible delisting from the Tokyo Stock Exchange.

Auditor PricewaterhouseCoopers Aarata added a disclaimer to Toshiba's earnings report, saying it was not able to form an opinion of the results, CNBC reported. Releasing the reports with this kind of disclaimer is highly unusual for a major Tokyo-based company, and the Tokyo Exchange risks looking weak or undisciplined if it doesn’t take some kind of action against the struggling company.

The difficulties at Toshiba stem from its U.S. nuclear subsidiary Westinghouse Electric, which has had huge cost overruns at four nuclear reactors currently under construction in the southeastern U.S. These overruns have led to an estimated $9 billion net loss each year, CNBC reported.

The huge loss led Westinghouse to file for Chapter 11 and Toshiba’s stake in Westinghouse will be sold, CNN Money reported.

The U.S. and Japan are concerned a Chinese company will try to buy the Westinghouse subsidiary, which could give them the resources they need to become a major nuclear power.

Toshiba is also trying to sell its memory chip unit along with other assets. Taiwan’s Foxconn has offered the brand 3 trillion yen for the chip business, but is considered too closely tied to China for the sale to pass inspection by Japanese regulator, CNBC said.

Without a change in circumstances soon, the Japanese company is not sure whether it will survive the current crisis to have a viable path forward as a company, CNN Money reported.

Toshiba's stock prices plummeted 30 percent since Monday on news of the 5.9 billion estimated third-quarter loss, which could end up being higher after Westinghouse is sold, CNN said.

© 2017 Newsmax. All rights reserved.

 
1Like our page
2Share
TheWire
Toshiba released a third quarter earnings report Tuesday after delaying twice before, but its auditor did not endorse the report, bringing up questions about possible delisting from the Tokyo Stock Exchange.
toshiba, earnings, report
295
2017-17-11
Tuesday, 11 Apr 2017 02:17 PM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
America's News Page
© Newsmax Media, Inc.
All Rights Reserved