Toshiba sees record $4.5 Billion loss

December 21, 2015

Toshiba Corp. forecast a record 550 billion yen ($4.5 billion) loss and will cut more jobs and restructure businesses that include chips, televisions, personal computers and home appliances following a long-running accounting scandal.

The projected net loss for this fiscal year includes 260 billion yen in taxes because of a reversal of deferred income-tax assets, it said in a statement Monday. The forecast doesn’t include possible impairment of goodwill and fixed assets at the company’s nuclear power systems business because Toshiba is still checking that, it said. (Bloomberg

The restructuring comes after Toshiba admitted earlier this year that it had overstated profits for six years.

The scandal led to the resignation of Toshiba’s president and vice-president. Masashi Muromachi took over as chief executive and president from previous president Hisao Tanaka. (BBC News)

Toshiba’s statement came two weeks after the Securities and Exchange Surveillance Commission watchdog said the company should be slapped with a record US$60mil (RM258mil) fine over the scandal. (The Star)

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