Toshiba posts 7-year earnings loss, revamps board for the future

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#1
A company with 140-year of history, will be delisted, and downed...?

Toshiba posts 7-year earnings loss, revamps board for the future

TOKYO — Japan’s Toshiba booked a net loss for the past financial year and pledged to improve governance with a revamped board of directors, raising hopes it is finally moving beyond a US$1.3 billion (S$1.9 billion) accounting scandal.

The submission of its books, twice postponed due to its accounting woes, helped to allay concerns among some investors that the conglomerate risked a delisting if it had missed its latest filing deadline.

Shares in Toshiba closed up 1.8 per cent yesterday. They have dropped by 31 per cent this year. Analysts also noted the company still had to tackle deeply rooted problems.

“Toshiba is still facing a number of daunting issues, such as what to do with its unprofitable PC and TV businesses,” said Mr Hiroyasu Nishikawa, a senior analyst at IwaiCosmo Securities, adding that its accounting woes were set to drag on due to shareholder lawsuits.
For the past financial year, it reported a ¥37.8 billion (S$452 million) net loss. It had at one time expected a ¥ 120 billion net profit before pulling that estimate in May when it announced the accounting probe was being expanded.

All in all, Toshiba said it had overstated profits going back to fiscal 2008/09 by ¥155 billion.

The accounting probe found in July that Toshiba suffered from dysfunctions in governance and a culture of discouraging employees from questioning their superiors, prompting the company’s chief executive and several other board members to step down.
The firm’s accounting scandal is Japan’s biggest since 2011, when camera- and medical device-maker Olympus was found to have been involved in a US$1.7 billion scheme to conceal two decades of investment losses. Olympus was subsequently fined ¥700 million, and some former executives were handed suspended jail sentences.

Reuters
http://www.todayonline.com/tech/toshiba-...ard-future

The history of the company here
https://www.toshiba.co.jp/worldwide/abou...rofile.pdf
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
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#2
The century-old company, still in red to-date...

Toshiba to report Q1 operating loss of over 10b yen
14 Sep 2015 13:28
[TOKYO] Toshiba Corp is set to report an operating loss of more than 10 billion yen (S$117.1 million) in the April-June quarter hurt by weakness in the consumer electronics business, the Nikkei business daily reported.
...
REUTERS

Source: Business Times Breaking News
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
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#3
Used to like their laptops and would recommend them and ASUS to relatives looking for new laptops. That was until last couple years ago their build quality went way downhill. It's no wonder the company is in the red.

HewlettP was like that just a couple years back, still remember their overheating laptops with LCD problems, much better laptops nowadays, HP now starting to make a turnaround.

Perhaps they should get a woman CEO to run it, it will be a PR win for them too with the Japs slowly moving towards more empowerment of women.


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#4
Toshiba has little to no chance to turnaround imo. Too much cultural issues with japanese companies in general, and I don't see where they can grow their business moving forward.

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#5
(15-09-2015, 12:38 AM)thor666 Wrote: Toshiba has little to no chance to turnaround imo. Too much cultural issues with japanese companies in general, and I don't see where they can grow their business moving forward.

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Toshiba is a strong brand, with a long history. It is a very valuable asset, and I reckon lot of people want it to survive.
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
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#6
(15-09-2015, 09:14 AM)CityFarmer Wrote:
(15-09-2015, 12:38 AM)thor666 Wrote: Toshiba has little to no chance to turnaround imo. Too much cultural issues with japanese companies in general, and I don't see where they can grow their business moving forward.

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Toshiba is a strong brand, with a long history. It is a very valuable asset, and I reckon lot of people want it to survive.
History is one thing. Mindset of the consumer is another. I bought a Toshiba flat screen CRT TV many years back and it stopped working in just 3 years. Will I buy Toshiba again? Maybe not unless it is much cheaper compared to other brands. Sony is another company. I bought a portable radio and I was so confident about its quality and durability that I didnt register for the warranty. End up, it died on me in 9 months. Still impressed by its design and thought perhaps its a one off unlucky encounter, I bought a sony clock radio. And it died on me in 1+ years. I will never buy sony products ever again. Is it a coincident both Toshiba and Sony make huge losses? I dont think so. The consumer confidence in their products is lost.
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#7
Yeah, their laptops used to be quite good alongside IBM/Lenovo. AIRCON also okay but they didn't quite capture the market after buying carrier. Dominated by Mitsubishi now, especially residential ones.
Winston Churchill:-
“The inherent vice of capitalism is the unequal sharing of blessings; the inherent virtue of socialism is the equal sharing of miseries.”
"The farther backward you can look, the farther forward you are likely to see."
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#8
Toshiba still has the trust from banks...

Toshiba obtains new 2-year commitment line from banks worth US$3.3b
30 Sep 2015 09:46
[TOKYO] Japan's Toshiba Corp has secured a fresh, two-year commitment line from its main banks worth 400 billion yen (S$4.7 billion), which nearly doubles the amount available, as it seeks a stable source of funds in the wake of a debilitating accounting scandal.

The laptops-to-nuclear power conglomerate said the new safety net would help prepare for any unexpected downturn in the market. The Tokyo Stock Exchange this month placed Toshiba on a watch-list, imposing a 91.2 million yen fine for the accounting debacle.
...
REUTERS

Source: Business Times Breaking News
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
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