Toshiba predicts record losses in its 140-year history
The Japanese company Toshiba made a disappointing forecast for 2016. The company expects that losses will be the largest in all 140 years of its existence.
According to the company's forecast, its net loss for the fiscal year ending on March 31 will be 710 billion yen ($ 6 billion) against the expected 550 billion yen in December (almost $ 4.6 billion). Operating loss estimates also dropped to 430 billion yen (almost $ 3.6 billion) from 340 billion yen (about $ 2.8 billion).
At the same time, the estimate of annual revenue remained unchanged - 6.2 trillion yen (almost $ 52 billion), reports The Wall Street Journal.
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Experts interviewed by FactSet suggested the following forecast of the company's financial results: 452.5 billion yen ($ 3.8 billion) for a net loss; 286.1 billion yen ($ 2.4 billion) for operating loss and 6.23 trillion yen ($ 51.9 billion) for revenue.
Toshiba's net loss for the past fiscal year was 37.87 billion yen (almost $ 316 million).
One of the reasons for such a “bold” forecast is the write-off of the cost of several units.
Toshiba in the summer of 2015 announced a global restructuring. This was preceded by a scandal with the rigging of financial statements. The corporation has for several years falsified financial statements, thus attributing to itself 152 billion yen ($ 1.2 billion) of non-existent profits. Toshiba has sued its own president and other top managers to recover 300 million yen ($ 2.4 million). As a result, the president of the company Hisao Tanaka resigned.
As part of the restructuring, it is planned to reduce about 10 thousand jobs and sell unprofitable business, including the production of personal computers and consumer electronics.
In December, the general director of Toshiba Rus LLC, Hiroaki Tezuka, said that the restructuring of the company's business in Russia was completed. In this case, this leads to the liquidation of the Russian division for the sale of televisions and kitchen appliances. The Japanese corporation stopped sales of refrigerators and teapot thermos, deciding to focus on b2b contracts.
The general director explains this decision by high competition and fluctuations in the ruble exchange rate. In the TV segment, Samsung and LG were the largest competitors. “It was hard to work in this market, Korean companies have a market share of 70%,” said Tezuka.
Toshiba, whose history can be traced since 1875, works in the field of electrical engineering, electronics, energy and medical equipment.
According to the company's forecast, its net loss for the fiscal year ending on March 31 will be 710 billion yen ($ 6 billion) against the expected 550 billion yen in December (almost $ 4.6 billion). Operating loss estimates also dropped to 430 billion yen (almost $ 3.6 billion) from 340 billion yen (about $ 2.8 billion).
At the same time, the estimate of annual revenue remained unchanged - 6.2 trillion yen (almost $ 52 billion), reports The Wall Street Journal.
')
Experts interviewed by FactSet suggested the following forecast of the company's financial results: 452.5 billion yen ($ 3.8 billion) for a net loss; 286.1 billion yen ($ 2.4 billion) for operating loss and 6.23 trillion yen ($ 51.9 billion) for revenue.
Toshiba's net loss for the past fiscal year was 37.87 billion yen (almost $ 316 million).
One of the reasons for such a “bold” forecast is the write-off of the cost of several units.
Toshiba in the summer of 2015 announced a global restructuring. This was preceded by a scandal with the rigging of financial statements. The corporation has for several years falsified financial statements, thus attributing to itself 152 billion yen ($ 1.2 billion) of non-existent profits. Toshiba has sued its own president and other top managers to recover 300 million yen ($ 2.4 million). As a result, the president of the company Hisao Tanaka resigned.
As part of the restructuring, it is planned to reduce about 10 thousand jobs and sell unprofitable business, including the production of personal computers and consumer electronics.
In December, the general director of Toshiba Rus LLC, Hiroaki Tezuka, said that the restructuring of the company's business in Russia was completed. In this case, this leads to the liquidation of the Russian division for the sale of televisions and kitchen appliances. The Japanese corporation stopped sales of refrigerators and teapot thermos, deciding to focus on b2b contracts.
The general director explains this decision by high competition and fluctuations in the ruble exchange rate. In the TV segment, Samsung and LG were the largest competitors. “It was hard to work in this market, Korean companies have a market share of 70%,” said Tezuka.
Toshiba, whose history can be traced since 1875, works in the field of electrical engineering, electronics, energy and medical equipment.
Source: https://habr.com/ru/post/298444/
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