Toshiba: Cooperating with US on accounting problem

GMT 14:21 2016 Friday ,18 March

Arab Today, arab today Toshiba: Cooperating with US on accounting problem

Toshiba, a pillar of Japan's industrial establishment, is expecting a huge loss of about 710bn yen
Tokyo - AFP

Toshiba's American units are cooperating with US authorities over alleged accounting irregularities, the embattled firm said Friday, a day after its shares tumbled on a report it was under investigation.

The company has been roiled by a profit-padding scandal, in which high-handed bosses for years systematically pushed their subordinates to cover-up weak financial figures.

Toshiba, a pillar of Japan's industrial establishment, is expecting a huge loss of about 710 billion yen ($6.4 billion) for the year to March with sagging global demand also contributing to its financial woes.

"We are being asked to provide information and we're currently responding to the request sincerely," Masashi Muromachi, Toshiba president, told reporters.

In a statement earlier in the day, Toshiba said that "several" of its US subsidiaries have been asked for information by the US Department of Justice and Securities and Exchange Commission.

The statement referred to what it described as an "accounting problem" though it refrained from naming any of the companies.

The statement came after Bloomberg News, quoting unnamed sources, reported on Thursday that the US Justice Department and the Securities and Exchange Commission are examining if any fraud occurred over a loss booked by Toshiba's US nuclear business unit Westinghouse.

Westinghouse reacted angrily, saying in a statement that it "strongly refutes" the report.

"To our knowledge, Westinghouse financial reporting is not under investigation," it said.

On Thursday Toshiba's stock fell nearly eight percent in Tokyo following the probe report, but on Friday the shares rebounded and ended up 4.28 percent to 200.

After the market closed Friday, Toshiba said it would earn net profit of 40 billion yen in the year to March 2017 and 100 billion in the year to March 2019 due to sweeping ongoing reforms, including sales of major units, that will slim down its corporate focus.

In December, Japan's Securities and Exchange Surveillance Commission said that Toshiba should be slapped with a record 7.37 billion yen fine over the profit-padding scheme that hammered its reputation.

In the wake of the scandal, Toshiba -- a vast conglomerate that makes everything from rice cookers to nuclear plants -- has ushered in thousands of job cuts and plans to sell various business units in a bid to revive itself.

Toshiba said Thursday that it has sold its medical devices unit to camera and office equipment maker Canon for almost $6 billion.

It also announced a basic agreement to sell a majority interest in its home appliance business to China's Midea, though a Toshiba spokeswoman said a price for the deal had yet to be announced.


Arab Today, arab today
Arab Today, arab today
arabtoday arabtoday arabtoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabs, Arab, Arab