Scandal plagued Toshiba is set to announce a $5.6 Billion Dollar loss and there is a real possibility, that the Company will use a press briefing today Monday, to announce a restructure of their loss making PC.
The net loss of roughly $5.6 billion in the current fiscal year is due to heavy restructuring costs after an accounting scandal, a person familiar with the matter said.
The PC Division which has turned to cheap manufacturing Companies in China to make their products is a “basket case” according to some analysts.
The company’s unit focusing on consumer products such as personal computers and TV’s has long been troubled and posted an operating loss of ?42.5 billion in the first half of the fiscal year, which ended Sept. 30.
The Australian division got out of TV’s last year after struggling to deliver a competitive product. They are also heavily exposed with Dick Smith who has been discounting out Toshiba product in an effort to shift stock.
Separately, Toshiba President Masashi Muromachi said in November that the company might sell a stake in its semiconductor unit, which had been making steady profits by supplying flash-memory chips to smartphone makers but has run into trouble more recently.
The Company has also been shopping their PC division around but there appears to be no Companies interested due to declining sales of PC.s.
The person familiar with Toshiba’s plans said the restructuring plans, which are likely to include asset write-downs and one-time costs for reducing the workforce, are expected to result in a net loss of approximately $5.6 Billion for the fiscal year, which ends March 2016.
Toshiba has been on a steady downward track this year after news first emerged in April of accounting irregularities.
The company acknowledged in July that it had overstated profits by more than ?150 billion over seven years, and then-President Hisao Tanaka resigned.
The company’s share price, which topped ?500 in March, closed Friday at ?283. Toshiba had ?1.54 trillion in interest-bearing debt as of Sept. 30.
