Massive losses place Toshiba’s future in doubt

Toshiba has released unaudited results for the year to the end of December 2016 that showed an operating loss of ¥576.3 billion (£4.21bn) compared with last year’s loss of ¥231.9bn.

The company had already missed the filing dates twice and had it not filed this time would have faced delisting from the Tokyo Stock Exchange.

The latest results are unaudited because Pricewaterhouse Coopers Aarata said it was still carrying out investigations surrounding the Westinghouse situation – the Toshiba-owned company was placed into Chapter 11 bankruptcy protection in March after it suffered a $6.3bn (£5bn) writedown on its US nuclear business.

Reports in The Japan Times quoted a statement from Toshiba as saying that the massive losses reported for 2016 cast “substantial doubt about the company’s ability to continue as a going concern”.

In terms of sales, Toshiba reported a figure for 2016 of ¥3,846.9bn compared with ¥4,013.5bn in the previous fiscal year.

One ray of sunshine for Toshiba may be that Taiwanese Foxconn has shown interest in buying its chip business for around $21bn. This has led to speculation, however, that this may result in Toshiba being broken up. Neither Toshiba nor Foxconn have officially commented on this.